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Originally published July 9, 2012 at 8:59 a.m., updated July 9, 2012 at 1:31 p.m.
TOPEKA Major news outlets, including the Wall Street Journal, are reporting that WellPoint will purchase Amerigroup in a $4.5 billion deal, news of which also drove up share prices for other leading Medicaid managed care companies.
KHI News graphic
Amerigroup's subsidiary Amerigroup Kansas, Inc. was one of three companies awarded contracts by the administration of Gov. Sam Brownback as it moves to remake the state's Medicaid program.
According to the reports, the combined companies will serve about 4.5 million beneficiaries in 19 states. WellPoint officials said they expect to close the deal in the first quarter of 2013.
Kansas officials said terms of the KanCare contract with Amerigroup would remain intact.
"The terms of the contract Amerigroup signed to provide integrated care coordination in KanCare remain in place, and our expectations for KanCare are still that Kansans will benefit from better outcomes and reduced cost growth," said Miranda Steele, a spokesperson for the Kansas Department of Health and Environment. "Amerigroup has met with us to reiterate their commitment to our vision."
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