Amerigroup bought out by wellpoint

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Individual Find the plan that suits you best. Digital ePaper. Group Premium access for businesses and educational institutions. Get Started Check if your university or organisation offers FT membership to read for free. Cookies on FT Sites. The combined company will offer Medicaid plans in 19 states. WellPoint is paying a significant premium to embark on such an expansion. It is expected to close in the first quarter of next year.

The company has been a serial acquirer in recent years, having bought Contacts, a contact lens retailer, and CareMore, a provider of managed care for the elderly, over the last 12 months alone. Shares of WellPoint rose 3. Both companies said the deal made sense regardless of the fate of the health care overhaul, which the Supreme Court upheld two weeks ago. The Supreme Court decision also appears to give states more latitude in deciding whether to participate in the Medicaid expansion, and some governors have intimated that they may pursue shrinking their enrollment rather than growing it.

Evans said that while federal officials were likely to try to find an eventual compromise with recalcitrant states, he estimates that as many as 13 million people live in states where Republican lawmakers could opt out of the federal expansion and reduce the number of individuals who are enrolled.

Company officials discounted the possibility that state officials would make good on their threat to turn down significant federal money, emphasizing that the merger made sense even without the expansion.

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