Amerigroup Corp., Virginia Beach, Va., saw its 2003 profits rise substantially thanks to acquisitions and stabilizing medical costs, while fellow Medicaid health plan Molina Healthcare, Long Beach, Calif., announced its first foray into New Mexico. For the year ended Dec. 31, 2003, Amerigroup said net income climbed 43% to $67.3 million, or $2.95 per share, while revenue rose 40% to $1.6 billion. Membership increased 45% to 857,000. The company provides managed-care coverage to beneficiaries of Medicaid and related programs in the District of Columbia, Florida, Illinois, Maryland, New Jersey and Texas. Meanwhile, Molina said it would buy Health Care Horizons, Albuquerque, for $69 million in cash and acquired debt in the third quarter. Molina plans to divest the company's 42,000 commercial members and focus on its 66,000 Medicaid members. Molina, which went public last year, covers nearly 600,000 Medicaid beneficiaries in California, Michigan, Utah and Washington state. It earned $42.5 million on revenue of $793.5 million in 2003. -- by Laura B. Benko
Acquisitions play well at Medicaid health plans
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