WellPoint positioning itself for growth amid health-care reform with $4.46B acquisition of Amerigroup |
Indianapolis Star - Jul 10, 2012 |
Health insurer WellPoint’s stock price plummeted last month after the U.S. Supreme Court upheld the federal health-care overhaul, falling more than 13 percent in six trading days.
What investors didn’t know was that WellPoint CEO Angela Braly had an ace up her sleeve.
In a move that could once again make the Indianapolis company the nation’s largest health insurance provider, Braly announced Monday that WellPoint would pay about $4.46?billion to buy Amerigroup Corp., a company that specializes in providing Medicaid coverage.
The deal positions the largest public company based in Indiana for significant growth, allowing it to capitalize on the rapidly emerging Medicaid market as states turn to the private sector to manage those plans and cut costs. That trend is only expected to accelerate under the Affordable Care Act, which expands the health coverage program for low-income and disabled citizens.
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- Posted: 2012-07-10 12:55:52
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