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WellPoint strikes deal to buy Amerigroup for $4.9 billion
Modern Healthcare

WellPoint said it entered a definitive agreement to acquire Amerigroup, a Virginia Beach, Va.-based managed-care company, for about $4.9 billion.

The deal will expand the Indianapolis-based health insurer’s Medicaid managed-care business, including its share of the dual-eligible population.

“We expect Medicaid spending under managed-care programs to increase by nearly $100 million by the end of 2014,” said WellPoint President and CEO Angela Braly during a conference call. “These opportunities will develop organically in addition to the Medicaid eligibility expansion under healthcare reform.”