Amerigroup and Inova completed the sale in November, and the maneuver divests all of Amerigroup’s managed care operations in Virginia.
The deal was also part of a stipulation from the Department of Justice. In July, health insurer WellPoint announced it had acquired Amerigroup for $4.9 billion. However, the DOJ thought the move could create a monopoly in northern Virginia, where WellPoint and Amerigroup are the only two Medicaid managed care plans, according to a Washington Business Journal report.
According to a separate Washington Business Journal report, Inova executives believe its new Medicaid plan could bring in $167 million in additional revenue per year. In 2012, Inova recorded roughly $2.4 billion in revenue.
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