Pharmacy News Article

July 30VIRGINIA BEACH Amerigroup Corp. reported a 36 percent jump in second-quarter net income, citing membership growth in its health plans and moderation in medical costs.

"Costs remained in line with, or better than expectations, in most markets," the Virginia Beach-based health insurer said. Membership in its health plans at the end of June stood at 1.9 million, up 2 percent from the end of March and 10 percent higher than a year earlier.

Amerigroup, whose managed-care plans serve beneficiaries of Medicaid and other government-funded programs, earned $67.21 million, or $1.31 a diluted share, for the April-through-June quarter. That was up from $49.6 million, or $0.94 a diluted share, for the comparable period last year.

Its net income for the 2009 second quarter would have been only $27.2 million, or $0.51 a diluted share, if a favorable tax adjustment from litigation had not been included, the company noted.

Revenues for the second quarter, which include investment income, totaled $1.44 billion, an 11 percent increase from $1.29 billion in the year-earlier period. The company attributed part of the growth to an acquisition in New Jersey and its launch of a long-term care program in Tennessee.

Amerigroup said it bought back slightly more than one million of its common shares during the recent quarter for $36.7 million shares.

Tom Shean, (757) 446-2379, tom.shean@pilotonline.com

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