Amerigroup Payment to End Lawsuit

Posted on: Wednesday, 23 July 2008, 12:00 CDT By Tribune Reporter Ameet Sachdev Contributed To This Report., Chicago Tribune Jul. 23--Amerigroup Corp., a manager of government health plans, agreed to pay $225 million to the U.S. and Illinois to settle a lawsuit alleging the company wrongfully denied coverage to pregnant women eligible for Medicaid. The Virginia Beach, Va., company also will pay legal fees of $9 million and enter a corporate integrity agreement, it said Tuesday. A federal judge in Chicago had ruled against Amerigroup in March 2007, awarding $334 million in the whistle-blower lawsuit. Medicaid is the joint U.S.-state program for the poor. The whistle-blower, who was in charge of government relations for the company in Illinois, filed the complaint in 2002. The company will report a one-time charge for the... [read full story]