Amerigroup to Resolve Fraud Allegations for $225 Million

By Alice Carver
15:52, August 15th 2008
41 votes
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Health insurer Amerigroup Corp will pay $225 million to resolve allegations that it defrauded the state of Illinois Medicaid program, the Justice Department and Illinois attorney general said on Thursday. The settlement with Amerigroup replaces the federal court judgement, but still remains the largest award in a federal health care fraud case in Illinois, according to a news release from the US Attorney’s office. Medicaid is the state-federal health plan for the poor.

“A settlement of this magnitude sends the clear message that this office takes health care fraud very seriously,” said Patrick Fitzgerald, the U.S. attorney for the northern district of Illinois, in a statement, according to Reuters. “This case also illustrated the perils a defendant faces in taking a case such as this to trial.”

The reason behind this decision was the need to lessen legal and financial uncertainty for the company.

As part of the settlement, Amerigroup has agreed to enter into a “corporate integrity agreement” with the U.S. Health and Human Services Department’s Office of Inspector General. Amerigroup no longer operates in Illinois, but it operates plans in other states, including Virginia, with a combined enrollment of almost 1.7 million members. This agreement applies to all states in which the company does business and it requires it to adopt policies, procedures and a code of conduct which should be designed to prevent discrimination in its marketing and enrolment practices.

 



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