Amerigroup Lawsuit Settled for $225 Million in Illinois Fraud Case

August 19, 2008

An insurance company giant has agreed to pay $225 million to settle a lawsuit that accused it of discriminating against pregnant women and other high-risk patients in Illinois.

The Illinois attorney general’s office announced the settlement with Virginia-based Amerigroup on August 14.

The agreement resolves allegations that Amerigroup and its Illinois subsidiary defrauded the state’s Medicaid program.

Attorney General Lisa Madigan says the settlement sends a clear message that Illinois won’t tolerate such conduct.

A message left by the Associated Press for an Amerigroup spokesman hasn’t been returned. But when Amerigroup first agreed in principle to settlement terms last month, it said it would admit no wrongdoing.

Amerigroup serves about 1.7 million people in a dozen states

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