Amerigroup's managed Medicaid business grew by over 200,000 people from 2009 to 2010. They serve 11 of America's 50 states. Over all product lines, business is up 260,000 people from early 2009.
Amerigroup serves state Medicaid, CHIP and Medicare Advantage. It did so quite profitably. Profits were over double analyst projections and up over 150% from that same quarter last year (excluding tax adjustments).
2nd quarter profits:
Analyst expectations- 61 cents a share
2009 profits- 51 cents per share
2010 results- $1.31 a share
There's more to the story of struggling Americans having to swallow their pride by going on Medicaid and Amerigroup making out like a bandit. They relate to health reform.
1. Uwe Reinhardt, author of numerous New York Times articles on health reform, found his Amerigroup holdings sitting at a gross $5.9 million. Reinhardt is an Amerigroup board member. He controls over 160,000 shares via direct holdings and stock options. Rarely did he declare his financial conflicts of interest during the reform process.
2. CBO projected the number of Americans on Medicaid to decline by 6 million covered lives from 2011-2013. It remains to be seen if this prediction comes true. If employers continue shedding jobs or that pesky health insurance benefit, projected savings will evaporate. They'll turn into real dollar costs.
3. Private equity underwriters (PEU's), like Carlyle Group and Golder Rauner, expressed interest in buying private state Medicaid insurers. PEU's already emptied their coffers to buy hospitals.
4. Uwe Reinhardt made $2.3 million from the sale of Triad Hospitals to Community Health Systems.
Who will help who make their next million, while Americans struggle?
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