Amerigroup, Virginia Beach, Va., closed on a deal to acquire certain assets of Centene Corp.'s subsidiary University Health Plans, a New Jersey Medicaid insurer.
Amerigroup closes University Health Plans deal
Financial terms of the deal, which will boost Amerigroup's New Jersey membership to 156,000, were not disclosed. The publicly traded Amerigroup said in regulatory filings it had 118,000 members in the New Jersey area at the end of December and ranked as the area's third-largest Medicaid health plan.
The transaction suffered a rocky start in late 2008, when Amerigroup said it would exit the deal citing a material change in University Health Plans' business operations roughly six weeks after it was announced. Centene Corp., based in St. Louis, sued in January 2009 to uphold the deal. The companies reached a confidential settlement in October 2009 and agreed to a modified deal.
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