Amerigroup (NYSE: AGP) is a health insurance company headquartered in Virginia Beach, Virginia. It is the largest publicly-traded company focused exclusively on meeting the needs of those enrolled in publicly-funded healthcare programs such as Medicaid and Medicare. In 1994, Amerigroup was founded to respond to the growing need for private-sector partners in states managing healthcare programs for lower-income families and people with disabilities.
AMERIGROUP Corporation, incorporated on December 9, 1994, is a multi-state managed healthcare company. The Company focuses on serving people who receive healthcare benefits through publicly sponsored programs, including Medicaid, Children’s Health Insurance Program (CHIP), Medicaid expansion programs and Medicare Advantage. As of December 31, 2009, the Company provided a range of products to approximately 1,788,000 members in Texas, Georgia, Florida, Tennessee, Maryland, New Jersey, New York, Nevada, Ohio, Virginia and New Mexico. In March 2010, the Company completed the previously announced acquisition of certain assets of University Health Plans.
Texas
The Company’s Texas subsidiary, AMERIGROUP Texas, Inc. is licensed as a health maintenance organization (HMO). The service areas include the cities of Austin, Corpus Christi, Dallas, Fort Worth, Houston and San Antonio and the surrounding counties. Effective January 1, 2008, AMERIGROUP Texas, Inc. expanded its Medicare Advantage offerings to the Houston contiguous counties and San Antonio service areas. As of December 31, 2009, it had approximately 505,000 members in Texas.
Georgia
The Company’s Georgia subsidiary AMGP Georgia Managed Care Company, Inc. is licensed as a HMO. In June 2006, it became operational in the Atlanta region. In September 2006, it became operational in the North, East and Southeast regions. As of December 31, 2009, the Company had approximately 249,000 members in Georgia.
Florida
The Company’s Florida subsidiary AMERIGROUP Florida, Inc. is licensed as a HMO and became operational in January 2003. Effective January 1, 2008, AMERIGROUP Florida, Inc. began operating a Medicare Advantage plan for eligible beneficiaries in Florida. As of December 31, 2009, the Company had approximately 236,000 members in Florida. The service areas include the metropolitan areas of Miami/Fort Lauderdale, Orlando and Tampa covering 29 counties in Florida.
Tennessee
The Company’s Tennessee subsidiary, AMERIGROUP Tennessee, Inc., is licensed as a HMO. It became operational in April 2007. Effective January 1, 2008, AMERIGROUP Tennessee, Inc. began operating a Medicare Advantage plan for eligible beneficiaries in Tennessee. As of December 31, 2009, the Company had approximately 195,000 members in Tennessee.
Maryland
The Company’s Maryland subsidiary, AMERIGROUP Maryland, Inc., is licensed as an HMO in Maryland and became operational in June 1999. The service areas include 22 of the 24 counties in Maryland. Effective, May 1, 2009, the Company expanded its product line offering to include the Primary Adult Care Program, a basic healthcare service for low income adults. As of December 31, 2009, the Company had approximately 194,000 members in Maryland.
New Jersey
The Company’s New Jersey subsidiary, AMERIGROUP New Jersey, Inc., is licensed as a HMO. The service areas include 20 of the 21 counties in New Jersey. Effective January 1, 2008, AMERIGROUP New Jersey, Inc. began operating a Medicare Advantage plan for eligible beneficiaries in New Jersey. As of December 31, 2009, the Company had approximately 118,000 members in the New Jersey service areas.
New York
The Company’s New York subsidiary, AMERIGROUP New York, LLC, formerly known as CarePlus, LLC, is licensed as a Prepaid Health Services Plan (PHSP) in New York. The service areas include New York City, within the boroughs of Brooklyn, Manhattan, Queens, the Bronx and Staten Island, and Putnam County. Effective January 1, 2008, AMERIGROUP New York, LLC began operating a Medicare Advantage plan for eligible beneficiaries in New York. As of December 31, 2009, the Company had approximately 114,000 members in New York.
Nevada
The Company’s Nevada subsidiary, AMERIGROUP Nevada, Inc. began serving Temporary Assistance for Needy Families (TANF) and Children’s Health Insurance Program (CHIP) members under a contract to provide Medicaid managed care services. As of December 31, 2009, AMERIGROUP Nevada, Inc. served approximately 62,000 members in Nevada.
Ohio
The Company’s Ohio subsidiary, AMERIGROUP Ohio, Inc., is licensed as a health insuring corporation (HIC). In September 2005, it began its operations in the Cincinnati service area. As of December 31, 2009, the Company had approximately 60,000 members in Ohio.
Virginia
The Company’s Virginia subsidiary, AMERIGROUP Virginia, Inc. is licensed as a HMO. In September 2005, it began its operations serving 14 counties and independent cities in Northern Virginia. As of December 31, 2009, the Company had approximately 35,000 members in Virginia.
New Mexico
The Company’s New Mexico subsidiary, AMERIGROUP Community Care of New Mexico, Inc., is licensed as HMO. In January 2008, it began its operations as a Medicare Advantage plan for eligible beneficiaries in New Mexico. In August 2008, the Company began serving individuals in New Mexico’s Coordination of Long-Term Services (CoLTS) program. As of December 31, 2009, the Company served approximately 20,000 members in New Mexico.
South Carolina
The Company’s South Carolina subsidiary, AMERIGROUP Community Care of South Carolina, Inc. is licensed as a HMO. In November 2007, it became operational with the TANF population.
Amerigroup launched its Amerikids healthcare product in Dallas and Houston in 2000 as well as Ameriplus in New Jersey. During the year the company achieved significant increases in enrollment in all of its markets, adding 1,000 new members in the District of Columbia, 7,000 in Fort Worth, 8,000 in Dallas, 9,000 in Chicago, 11,000 in New Jersey, 12,000 in Maryland, and 17,000 in Houston. Revenues for the year again showed strong growth, totaling $646.4 million, and net income improved to $26 million. The time seemed ripe for the company's initial investors to earn back their investments through a stock offering. In the spring of 2000 the company filed for an initial public offering (IPO) of stock with Deutsche Banc Alex. Brown serving as underwriter, but the timing proved unfortunate. After a significant bull-market run, the stock market was beginning to falter and IPOs became difficult to pull off. Amerigroup postponed its offering and for the next several months waited in vain for a window of opportunity to open. In the summer of 2001 new underwriters, Banc of America and UBS Warburg, stepped in, and in the first week of September an October date for the offering was set. But in the aftermath of the terrorist attacks of September 11, 2001, the offering again had to be postponed. It was not until November 2001, after submitting ten amendments to its original filing, that Amerigroup was able to complete its offering. In the end, the delays were beneficial to the company, which was able to grow profits and also take advantage of other healthcare companies that went to market before it, most of which performed well and helped Amerigroup to command a hefty premium. All told, the company netted $68.7 million, most of which was earmarked for general corporate needs and acquisitions, such as the $1.5 million purchase of MethodistCare Inc., a Houston Medicaid company, which added another 18,000 members after the deal was completed in 2002. When the year came to a close in 2001, Amerigroup had built its overall membership to 472,000, of which 150,000 were the result of acquisitions. Premiums improved to $889.5 million and net income exceeded $36 million.
In addition to the MethodistCare acquisition, in 2002 Amerigroup bought the District of Columbia Medicaid business of Capital Community Health Plan, the company's sixth acquisition, adding another 24,000 members. Amerigroup enjoyed significant growth in other markets as well, increasing enrollments in Maryland by 7,000, New Jersey by 11,000, Dallas by 20,000, Fort Worth by 23,000, and Houston by 39,000. Total memberships now approached 600,000, and as a result premiums topped the $1 billion mark to $1.15 billion, while net income improved to $47 million.
Amerigroup moved from the NASDAQ to the New York Stock Exchange in early 2003, in keeping with the company's financial status as well as its peers, which were listed already on the New York Stock Exchange. Moreover, the change gave the company greater exposure to a wider range of investors and would likely provide more long-term stability to its pricing. Later in the year, the company took advantage of its new listing to make a secondary offering of stock. What investors could not help but notice was Amerigroup's continued expansion in 2003. At the same time that it announced it was moving to the New York Stock Exchange, the company completed the $121 million purchase of Physicians Healthcare Plans Inc., adding 190,000 members in Florida, and moving into the Tampa, Orlando, and Miami/Fort Lauderdale markets. Later in the year, Amerigroup added another 28,000 Florida members by acquiring St. Augustine Medicaid, an AvMed Inc. division. During 2003 Amerigroup also enjoyed strong enrollment in some of its other markets, adding 5,000 new members in Houston, 9,000 in Dallas, and 33,000 in Fort Worth. Annual revenue from premiums topped $1.6 billion while net income in 2003 reached $67.3 million.
To support its expansion, Amerigroup added a chief operating officer and fresh executive talent, which it showed off to Wall Street analysts in a 2004 meeting. During the year, the company also reached an agreement to acquire a New York City health plan, CarePlus Health Plan, for $125 million, a deal that if approved by the government would give Amerigroup a presence in a potentially lucrative market, home to 1.3 million people eligible for Medicaid. The 114,000 members Amerigroup would pick up in the deal, the company's tenth in ten years, would push the company's membership rolls beyond the million mark and revenues to more than $2 billion. Flush with cash, Amerigroup was eyeing another 20 possible acquisitions. Other than Indiana, where the company had applied for a license, it was unclear what new markets the company planned to enter. There was little doubt, however, that Amerigroup was just beginning to realize its potential and strong growth would likely continue for some time to come.
Principal Subsidiaries: AMERIGROUP Florida, Inc.; AMERIGROUP Illinois, Inc.; AMERIGROUP New Jersey, Inc.; AMERIGROUP Texas, Inc.; AMERIGROUP Maryland, Inc.; AMERIGROUP District of Columbia, Inc.
Principal Competitors: Aetna Inc.; Blue Cross and Blue Shield Association; UnitedHealth Group Incorporated.
OVERALL
Beta: 0.65
Market Cap (Mil.): $3,392.54
Shares Outstanding (Mil.): 49.53
Annual Dividend: --
Yield (%): --
FINANCIALS
AGP Industry Sector
P/E (TTM): 12.67 15.56 38.56
EPS (TTM): 89.90 -- --
ROI: 20.46 8.58 1.88
ROE: 25.43 22.44 2.47
Key Dates:
1994: The company is incorporated as AMERICAID Community Care.
1996: The first operations are launched.
1997: The name is changed to AMERIGROUP Corporation.
2001: An initial public offering of stock is made.
2003: The company is listed on the New York Stock Exchange.
Statistics:
Public Company
Incorporated: 1994 as AMERICAID Community Care
Employees: 2,100
Sales: $1.62 billion (2003)
Stock Exchanges: New York
Ticker Symbol: AGP
NAIC: 515120 Health and Welfare Funds
Address:
4425 Corporation Lane
Virginia Beach, Virginia 23461
U.S.A.
AMERIGROUP Corporation, incorporated on December 9, 1994, is a multi-state managed healthcare company. The Company focuses on serving people who receive healthcare benefits through publicly sponsored programs, including Medicaid, Children’s Health Insurance Program (CHIP), Medicaid expansion programs and Medicare Advantage. As of December 31, 2009, the Company provided a range of products to approximately 1,788,000 members in Texas, Georgia, Florida, Tennessee, Maryland, New Jersey, New York, Nevada, Ohio, Virginia and New Mexico. In March 2010, the Company completed the previously announced acquisition of certain assets of University Health Plans.
Texas
The Company’s Texas subsidiary, AMERIGROUP Texas, Inc. is licensed as a health maintenance organization (HMO). The service areas include the cities of Austin, Corpus Christi, Dallas, Fort Worth, Houston and San Antonio and the surrounding counties. Effective January 1, 2008, AMERIGROUP Texas, Inc. expanded its Medicare Advantage offerings to the Houston contiguous counties and San Antonio service areas. As of December 31, 2009, it had approximately 505,000 members in Texas.
Georgia
The Company’s Georgia subsidiary AMGP Georgia Managed Care Company, Inc. is licensed as a HMO. In June 2006, it became operational in the Atlanta region. In September 2006, it became operational in the North, East and Southeast regions. As of December 31, 2009, the Company had approximately 249,000 members in Georgia.
Florida
The Company’s Florida subsidiary AMERIGROUP Florida, Inc. is licensed as a HMO and became operational in January 2003. Effective January 1, 2008, AMERIGROUP Florida, Inc. began operating a Medicare Advantage plan for eligible beneficiaries in Florida. As of December 31, 2009, the Company had approximately 236,000 members in Florida. The service areas include the metropolitan areas of Miami/Fort Lauderdale, Orlando and Tampa covering 29 counties in Florida.
Tennessee
The Company’s Tennessee subsidiary, AMERIGROUP Tennessee, Inc., is licensed as a HMO. It became operational in April 2007. Effective January 1, 2008, AMERIGROUP Tennessee, Inc. began operating a Medicare Advantage plan for eligible beneficiaries in Tennessee. As of December 31, 2009, the Company had approximately 195,000 members in Tennessee.
Maryland
The Company’s Maryland subsidiary, AMERIGROUP Maryland, Inc., is licensed as an HMO in Maryland and became operational in June 1999. The service areas include 22 of the 24 counties in Maryland. Effective, May 1, 2009, the Company expanded its product line offering to include the Primary Adult Care Program, a basic healthcare service for low income adults. As of December 31, 2009, the Company had approximately 194,000 members in Maryland.
New Jersey
The Company’s New Jersey subsidiary, AMERIGROUP New Jersey, Inc., is licensed as a HMO. The service areas include 20 of the 21 counties in New Jersey. Effective January 1, 2008, AMERIGROUP New Jersey, Inc. began operating a Medicare Advantage plan for eligible beneficiaries in New Jersey. As of December 31, 2009, the Company had approximately 118,000 members in the New Jersey service areas.
New York
The Company’s New York subsidiary, AMERIGROUP New York, LLC, formerly known as CarePlus, LLC, is licensed as a Prepaid Health Services Plan (PHSP) in New York. The service areas include New York City, within the boroughs of Brooklyn, Manhattan, Queens, the Bronx and Staten Island, and Putnam County. Effective January 1, 2008, AMERIGROUP New York, LLC began operating a Medicare Advantage plan for eligible beneficiaries in New York. As of December 31, 2009, the Company had approximately 114,000 members in New York.
Nevada
The Company’s Nevada subsidiary, AMERIGROUP Nevada, Inc. began serving Temporary Assistance for Needy Families (TANF) and Children’s Health Insurance Program (CHIP) members under a contract to provide Medicaid managed care services. As of December 31, 2009, AMERIGROUP Nevada, Inc. served approximately 62,000 members in Nevada.
Ohio
The Company’s Ohio subsidiary, AMERIGROUP Ohio, Inc., is licensed as a health insuring corporation (HIC). In September 2005, it began its operations in the Cincinnati service area. As of December 31, 2009, the Company had approximately 60,000 members in Ohio.
Virginia
The Company’s Virginia subsidiary, AMERIGROUP Virginia, Inc. is licensed as a HMO. In September 2005, it began its operations serving 14 counties and independent cities in Northern Virginia. As of December 31, 2009, the Company had approximately 35,000 members in Virginia.
New Mexico
The Company’s New Mexico subsidiary, AMERIGROUP Community Care of New Mexico, Inc., is licensed as HMO. In January 2008, it began its operations as a Medicare Advantage plan for eligible beneficiaries in New Mexico. In August 2008, the Company began serving individuals in New Mexico’s Coordination of Long-Term Services (CoLTS) program. As of December 31, 2009, the Company served approximately 20,000 members in New Mexico.
South Carolina
The Company’s South Carolina subsidiary, AMERIGROUP Community Care of South Carolina, Inc. is licensed as a HMO. In November 2007, it became operational with the TANF population.
Amerigroup launched its Amerikids healthcare product in Dallas and Houston in 2000 as well as Ameriplus in New Jersey. During the year the company achieved significant increases in enrollment in all of its markets, adding 1,000 new members in the District of Columbia, 7,000 in Fort Worth, 8,000 in Dallas, 9,000 in Chicago, 11,000 in New Jersey, 12,000 in Maryland, and 17,000 in Houston. Revenues for the year again showed strong growth, totaling $646.4 million, and net income improved to $26 million. The time seemed ripe for the company's initial investors to earn back their investments through a stock offering. In the spring of 2000 the company filed for an initial public offering (IPO) of stock with Deutsche Banc Alex. Brown serving as underwriter, but the timing proved unfortunate. After a significant bull-market run, the stock market was beginning to falter and IPOs became difficult to pull off. Amerigroup postponed its offering and for the next several months waited in vain for a window of opportunity to open. In the summer of 2001 new underwriters, Banc of America and UBS Warburg, stepped in, and in the first week of September an October date for the offering was set. But in the aftermath of the terrorist attacks of September 11, 2001, the offering again had to be postponed. It was not until November 2001, after submitting ten amendments to its original filing, that Amerigroup was able to complete its offering. In the end, the delays were beneficial to the company, which was able to grow profits and also take advantage of other healthcare companies that went to market before it, most of which performed well and helped Amerigroup to command a hefty premium. All told, the company netted $68.7 million, most of which was earmarked for general corporate needs and acquisitions, such as the $1.5 million purchase of MethodistCare Inc., a Houston Medicaid company, which added another 18,000 members after the deal was completed in 2002. When the year came to a close in 2001, Amerigroup had built its overall membership to 472,000, of which 150,000 were the result of acquisitions. Premiums improved to $889.5 million and net income exceeded $36 million.
In addition to the MethodistCare acquisition, in 2002 Amerigroup bought the District of Columbia Medicaid business of Capital Community Health Plan, the company's sixth acquisition, adding another 24,000 members. Amerigroup enjoyed significant growth in other markets as well, increasing enrollments in Maryland by 7,000, New Jersey by 11,000, Dallas by 20,000, Fort Worth by 23,000, and Houston by 39,000. Total memberships now approached 600,000, and as a result premiums topped the $1 billion mark to $1.15 billion, while net income improved to $47 million.
Amerigroup moved from the NASDAQ to the New York Stock Exchange in early 2003, in keeping with the company's financial status as well as its peers, which were listed already on the New York Stock Exchange. Moreover, the change gave the company greater exposure to a wider range of investors and would likely provide more long-term stability to its pricing. Later in the year, the company took advantage of its new listing to make a secondary offering of stock. What investors could not help but notice was Amerigroup's continued expansion in 2003. At the same time that it announced it was moving to the New York Stock Exchange, the company completed the $121 million purchase of Physicians Healthcare Plans Inc., adding 190,000 members in Florida, and moving into the Tampa, Orlando, and Miami/Fort Lauderdale markets. Later in the year, Amerigroup added another 28,000 Florida members by acquiring St. Augustine Medicaid, an AvMed Inc. division. During 2003 Amerigroup also enjoyed strong enrollment in some of its other markets, adding 5,000 new members in Houston, 9,000 in Dallas, and 33,000 in Fort Worth. Annual revenue from premiums topped $1.6 billion while net income in 2003 reached $67.3 million.
To support its expansion, Amerigroup added a chief operating officer and fresh executive talent, which it showed off to Wall Street analysts in a 2004 meeting. During the year, the company also reached an agreement to acquire a New York City health plan, CarePlus Health Plan, for $125 million, a deal that if approved by the government would give Amerigroup a presence in a potentially lucrative market, home to 1.3 million people eligible for Medicaid. The 114,000 members Amerigroup would pick up in the deal, the company's tenth in ten years, would push the company's membership rolls beyond the million mark and revenues to more than $2 billion. Flush with cash, Amerigroup was eyeing another 20 possible acquisitions. Other than Indiana, where the company had applied for a license, it was unclear what new markets the company planned to enter. There was little doubt, however, that Amerigroup was just beginning to realize its potential and strong growth would likely continue for some time to come.
Principal Subsidiaries: AMERIGROUP Florida, Inc.; AMERIGROUP Illinois, Inc.; AMERIGROUP New Jersey, Inc.; AMERIGROUP Texas, Inc.; AMERIGROUP Maryland, Inc.; AMERIGROUP District of Columbia, Inc.
Principal Competitors: Aetna Inc.; Blue Cross and Blue Shield Association; UnitedHealth Group Incorporated.
OVERALL
Beta: 0.65
Market Cap (Mil.): $3,392.54
Shares Outstanding (Mil.): 49.53
Annual Dividend: --
Yield (%): --
FINANCIALS
AGP Industry Sector
P/E (TTM): 12.67 15.56 38.56
EPS (TTM): 89.90 -- --
ROI: 20.46 8.58 1.88
ROE: 25.43 22.44 2.47
Key Dates:
1994: The company is incorporated as AMERICAID Community Care.
1996: The first operations are launched.
1997: The name is changed to AMERIGROUP Corporation.
2001: An initial public offering of stock is made.
2003: The company is listed on the New York Stock Exchange.
Statistics:
Public Company
Incorporated: 1994 as AMERICAID Community Care
Employees: 2,100
Sales: $1.62 billion (2003)
Stock Exchanges: New York
Ticker Symbol: AGP
NAIC: 515120 Health and Welfare Funds
Address:
4425 Corporation Lane
Virginia Beach, Virginia 23461
U.S.A.