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Amerigroup will pay $225 million to settle FCA suit

By Phillips & Cohen LLP

Amerigroup Corp., a Virginia insurance company, has agreed to end a pending appeal and pay $225 million to resolve claims that it defrauded the Illinois Medicaid program.

A federal jury had found that the company systematically avoided enrolling pregnant women and other high-risk patients in their managed care program in Illinois. That judgment required the company to pay $334 million, but the settlement replaces that judgment.

The U.S. Attorney's Office for the Northern District of Illinois also announced that the whistleblower in the suit will receive $56.25 million.

Full post as published by False Claims Act - Qui Tam on August 21, 2008 (boomark / email).