Amerigroup Corp MCO Analyzer

Analyst: Taylor Holliday

Report Summary:
Amerigroup had a banner year in 2010, growing revenue to a level that launched it into the Fortune 500, and it continued the momentum in 2011 by winning major new Medicaid contracts. Investment analysts expect the company to double revenue between 2011 and 2014, when federal healthcare reform kicks in and Amerigroup gains up to 1 million new members from the expansion of Medicaid. Amerigroup is particularly strong in serving the aged, blind and disabled population, which is where much of the near-term growth in managed Medicaid will come from as states begin to move this population to managed care. Pharmacy lives are another growth arena, with Texas and New York about to move management of pharmacy benefits to Amerigroup and other managed care organizations.

Questions Answered In This Report: 

Amerigroup had more than 18,000 enrollees in its Medicare Advantage plans in 2011. What segment of Medicare Advantage is the company focused on? What opportunities does this represent for growth?

Amerigroup has typically managed the pharmacy benefits for only a fraction of the members for whom it manages their medical benefits.  How many more pharmacy lives could be coming in to Amerigroup management in 2011 and 2012? How does the company implement pharmacy benefit management? What controls does it impose on expensive branded drugs?

Amerigroup is launching a patient-centered medical home program in multiple states. How many physicians and members does the program affect? What outcomes and processes are the medical homes targeting for improvement? What key states are the medical homes operating in?

Primary Research:
Analysis of data from HealthLeaders-InterStudy, SEC reports, Centers for Medicare & Medicaid Services and data from Amerigroup press releases and annual reports 

Companies Mentioned In This Report:

• Amerigroup Corp.
• CarePlus Health Plan
• Centene Corp.
• University Health Plans Inc.