Thursday, August 14, 2008

Patrick Fitzgerald wins in medicare fraud case against Amerigroup

2-Amerigroup to pay $225 mln Medicaid settlement
Aug 14, 2008

WASHINGTON, Aug 14 (Reuters) - Health insurer Amerigroup Corp (AGP.N: Quote, Profile, Research, Stock Buzz) will pay $225 million to settle federal and state claims of fraud in a government health insurance program, the company and the U.S. Justice Department said on Thursday.

The pact, in coordination with Illinois officials, settles allegations that the company's health plans excluded pregnant women and unhealthy patients in the Illinois Medicaid plan. Medicaid is the state-federal health plan for the poor.

"A settlement of this magnitude sends the clear message that this office takes health care fraud very seriously," said Patrick Fitzgerald, the U.S. attorney for the northern district of Illinois, in a statement...

A jury found Amerigroup liable under federal and state law in October 2006, and the court entered a $334 million judgment against Amerigroup...

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