AMERIGROUP Corp. (AGP, Financial) filed Quarterly Report for the period ended 2010-09-30.
Amerigroup Corp. has a market cap of $2.2 billion; its shares were traded at around $42.83 with a P/E ratio of 12.9 and P/S ratio of 0.4. Amerigroup Corp. had an annual average earning growth of 13.5% over the past 10 years.AGP is in the portfolios of Ron Baron of Baron Funds, Jim Simons of Renaissance Technologies LLC, Paul Tudor Jones of The Tudor Group, Steven Cohen of SAC Capital Advisors.
In October 2008, AMERIGROUP Florida, Inc. submitted its response to the letters. In July 2009, the Company received another series of letters from the IG and AHCA stating that, based on a review of the AMERIGROUP Florida, Inc.s response, they had determined that AMERIGROUP Florida, Inc. did not comply with the Unborn Activation Process and assessed fines against AMERIGROUP Florida, Inc. in the amount of two thousand, five hundred dollars per newborn for an aggregate amount of approximately $6.0 million. The letters further reserved AHCAs right to pursue collection of the amount paid for the fee-for-service claims. AMERIGROUP Florida, Inc. appealed these findings and submitted documentation to evidence its compliance with, and performance under, the Unborn Activation Process requirements of the contract. On January 14, 2010, AMERIGROUP Florida, Inc. appealed AHCAs contract interpretation to the Florida Deputy Secretary of Medicaid that the failure to utilize the Unborn Activation Process for each and every newborn could result in fines. In February 2010, AMERIGROUP Florida, Inc. received another series of letters from the IG and AHCA revising the damages from $10.6 million to $3.2 million for the fee-for-service claims that AHCA believed they paid. The revised damages include an offset of premiums that would have been paid for the dates of service covered by the claims. The letters also included an updated fine amount which was not materially different from the prior letters.
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Amerigroup Corp. has a market cap of $2.2 billion; its shares were traded at around $42.83 with a P/E ratio of 12.9 and P/S ratio of 0.4. Amerigroup Corp. had an annual average earning growth of 13.5% over the past 10 years.AGP is in the portfolios of Ron Baron of Baron Funds, Jim Simons of Renaissance Technologies LLC, Paul Tudor Jones of The Tudor Group, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:
In October 2010, the Georgia Department of Community Health provided initial confirmation of a premium rate increase to the Medicaid managed care contract with our Georgia health plan for the period July 1, 2010 through June 30, 2011, subject to Centers for Medicare & Medicaid Services (CMS) approval. In accordance with U.S. generally accepted accounting principles, the increased premium related to this contract amendment will be recognized in the period the contract is executed. We anticipate execution of this amendment during the fourth quarter of 2010 and expect our earnings for the fourth quarter to increase by approximately $7.7 million, or approximately $0.10 per diluted share, related to the retroactive impact of the increased premium for services provided to eligible members in the third quarter of 2010. We can give no assurance that the premium rates within the contract amendment will be approved by CMS or that our estimates of the impact of the anticipated premium rate increase will be realized.In October 2008, AMERIGROUP Florida, Inc. submitted its response to the letters. In July 2009, the Company received another series of letters from the IG and AHCA stating that, based on a review of the AMERIGROUP Florida, Inc.s response, they had determined that AMERIGROUP Florida, Inc. did not comply with the Unborn Activation Process and assessed fines against AMERIGROUP Florida, Inc. in the amount of two thousand, five hundred dollars per newborn for an aggregate amount of approximately $6.0 million. The letters further reserved AHCAs right to pursue collection of the amount paid for the fee-for-service claims. AMERIGROUP Florida, Inc. appealed these findings and submitted documentation to evidence its compliance with, and performance under, the Unborn Activation Process requirements of the contract. On January 14, 2010, AMERIGROUP Florida, Inc. appealed AHCAs contract interpretation to the Florida Deputy Secretary of Medicaid that the failure to utilize the Unborn Activation Process for each and every newborn could result in fines. In February 2010, AMERIGROUP Florida, Inc. received another series of letters from the IG and AHCA revising the damages from $10.6 million to $3.2 million for the fee-for-service claims that AHCA believed they paid. The revised damages include an offset of premiums that would have been paid for the dates of service covered by the claims. The letters also included an updated fine amount which was not materially different from the prior letters.
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