Carrier Settles Medicaid Claims

A company has agreed to pay $225 million to resolve allegations that it avoided enrolling sick patients and pregnant women in an Illinois Medicaid program it administered, officials say.

Officials at the U.S. Department of Justice and the Illinois attorney general’s office say they investigated the company, AmeriGroup Corp., Virginia Beach, Va., because the company was required by law to enroll all eligible beneficiaries.

AmeriGroup, which shut down Illinois operations in 2006, has admitted no wrongdoing in connection with the settlement and says it agreed to the settlement to remove a source of legal and financial uncertainty.