* Amerigroup has 55,000 members in Virginia
* Says WellPoint deal expected to close in fourth quarter
Sept 28 Health insurer Amerigroup Corp,
which is being acquired by WellPoint Inc, said it would
sell its managed care operations in Virginia following antitrust
queries from the U.S. Department of Justice.
Amerigroup agreed to sell its Virginia business to Inova, a
not-for-profit health care system, the company said. WellPoint
also has extensive operations in Virginia, raising potential
antitrust issues as a result of the merger.
WellPoint in July announced plans to buy Amerigroup for
$4.46 billion, placing a major bet on the expansion of the U.S.
government's Medicaid health plans for the poor.
Amerigroup also said on Friday that it still expected the
deal with WellPoint to close in the fourth quarter, reiterating
a timeline it laid out in August.
The antitrust waiting period for closing of the deal was
extended last month after the U.S. Department of Justice sought
additional information from both companies.
Amerigroup said that the second request for information made
to Amerigroup and WellPoint by the Justice Department focused on
Amerigroup said the sale of its Virginia business, which
covers 55,000 members and operates in 58 cities and counties,
would not require any change to the WellPoint deal. The sale to
Inova is contingent on the WellPoint purchase of Amerigroup
closing and is also expected in the fourth quarter.
North Virginia-based Inova is a not-for-profit healthcare
provider with hospitals located in Washington, D.C. and its
Amerigroup, based in Virginia Beach, Virginia, runs
Medicaid, the Children's Health Insurance Program and Medicaid
expansion programs in Virginia. WellPoint operates as Anthem
Blue Cross Blue Shield in Virginia and runs Medicaid programs
Shares of Amerigroup were up 0.2 percent at $91.40, while
WellPoint was down 0.3 percent at $57.90 on Friday on the New
York Stock Exchange.