The AMERIGROUP Corporation announced Wednesday that it has terminated its agreement to purchase a New Jersey Medicaid plan from the University Health Plan, Inc., a wholly-owned subsidiary of Centene Corporation.
A spokesman for AMERIGROUP said it exercised its right of termination "as a result of certain events that occurred following execution of the agreement."
According to AMERIGROUP, the termination will have no effect on the company's previously announced transaction to sell the assets of its South Carolina health plan to Centene. This transaction is subject to various closing conditions, including regulatory approval.
The AMERIGROUP Corporation is headquartered in Virginia Beach, Va. According to the company, its goal is to improve healthcare access and quality for the financially vulnerable, seniors and people with disabilities by developing innovative managed health services for the public sector.
Through its subsidiaries, The AMERIGROUP Corporation serves approximately 1.7 million people in Florida, Georgia, Maryland, New Jersey, New Mexico, New York, Ohio, South Carolina, Tennessee, Texas and Virginia.