VIRGINIA BEACH, Va., May 12 /PRNewswire-FirstCall/ -- AMERIGROUP today provided an update on the resolution of Maryland premium issue.
The Maryland General Assembly enacted language in the State's FY2005 budget that directs the Department of Health and Mental Hygiene to recover a portion of premiums from managed care organizations (MCOs) for 2002 under certain circumstances.
The Secretary of Health and Mental Hygiene, in consultation with legislative leadership, has determined AMERIGROUP's one-time premium recoupment to be $845,846 before income tax effects. The Company's Form 10-Q filed with the Securities and Exchange Commission on May 7, 2004 estimated the range for the take-back for all MCOs to be between zero and $7.4 million. This take-back will have no effect on the Company's current full-year 2004 earnings per share guidance of $3.09 to 3.14.
"We share the goal of Maryland's legislators and regulators of ensuring that State funds are spent prudently and in a way that improves the quality of healthcare for low-income families," said Jeffrey L. McWaters, AMERIGROUP Chairman and Chief Executive Officer. "We remain committed to providing the State and our members outstanding quality and value, which have been demonstrated in the past by the Delmarva Quality Assessments and the Value- Based Purchasing Reports."
Going forward, the Legislature directed the Department to study the validity of minimum medical loss ratios and HEDIS quality measures as indicators of quality and efficiency and to recommend alternatives.
AMERIGROUP Corporation, headquartered in Virginia Beach, Virginia, is a multi-state managed health care company focused on serving people who receive health care benefits through publicly sponsored programs including Medicaid, State Children's Health Insurance Program, or SCHIP, and FamilyCare. The Company operates in Texas, New Jersey, Maryland, Illinois, Florida and the District of Columbia. For more information about AMERIGROUP Corporation, please visit the Company's web site at http://www.amerigroupcorp.com/.
CONTACT: Investors: Julie Loftus Trudell of AMERIGROUP, +1-757-321-3535.
AMERIGROUP CorporationCONTACT: Investors: Julie Loftus Trudell of AMERIGROUP, +1-757-321-3535
Web site: http://www.amerigroupcorp.com/
