Health benefits company, WellPoint, Inc., will expand its current 96 million-strong customer base after agreeing to acquire Amerigroup, a health care company focused on serving Americans receiving publicly funded health care services, WellPoint announced earlier this month.
The transaction comes at a $4.9 billion cost to WellPoint, and will result in the company’s support of more than 4.5 million state-sponsored health care beneficiaries spanning 19 states.
After the transaction is completed, WellPoint will be present in 13 states that have substantial opportunities for short-term dual eligible managed care programs. WellPoint also aims to increase its ability to serve the Medicaid beneficiaries, seniors and persons with disabilities, and long-services and support markets.
Through combining services WellPoint aims to continue with both companies’ goals of providing quality and economical care for their customers.
“We know that lowering costs for states while improving the quality of care for program beneficiaries is a winning proposition for our members, company, associates, shareholders and the entire health care system,” said Angela Braly, chair, president, and chief executive officer of WellPoint.
The acquisition is expected to be completed in the first quarter of 2013.
Written by Erin Hegarty