Govt Business to be Helped by WellPoint Inc:

WellPoint Inc. buys over Amerigroup Corp hoping for profits in2013.

Amerigroup Corp was recently bought over by WellPoint which will advance the Government business – said BMO capital in a report.

WellPoint – the Indianapolis insurer had announced its intention to buy over Amerigroup Corp in July. It completed the $ 4.46 billion deal on Monday the 24th. Amerigroup Corp manages Medicaid a federally funded program for health cover for the poor and disabled residents above the age of 65. These people qualify for both Medicaid and Medicare and are moved into managed care programs.

What is Medicare / Medicaid? - Eligibility - Payment - Reference
Medicaid / Medicare are different governmental programs that provide medical and health-related services to specific groups of people in U.S. and managed by Centers for Medicare and Medicaid Services.

These patients have chronic medical ailments and taking care of them is expensive, although insurers and analysts see this as rewarding business. By the next year more people will be entitled for Medicaid.

According to WellPoint its Medicaid business will serve 4.5 million people in 20 states.

After some research Shove felt his WellPoint earnings of 2013 would cover the deal including factoring in higher Medicaid enrollments and interest expenses for debt.

Overview on USA Healthcare Insurance
This section gives an introduction about the status of Healthcare Sector in USA – in the past and present and introduction of reforms for a secured future.

Shore wrote that "With the addition of (Amerigroup), WellPoint's business will likely be better exposed to government payments while fundamentals will likely remain intact,"

Shove lowered his expected earnings for the insurer by 4 cents per share in 2012 and raised it by a penny a share by 2013.

Customer Care in Health Insurance Industry
Health Insurance Industry is a service-oriented industry with customer satisfaction and customer grievances being important components of its business operations. Both the issues – Customer satisfaction and Customer Grievances have been described in the article in co-relation with the health insurance sector.

WellPoint Inc. runs Blue Cross Blue Shield plans in many states and is the nation’s second largest health insurer.

Source: Associated Press December 27th

Health Insurance For Pre-Existing Conditions
Many people worry about getting health insurance plans for pre-existing conditions and they believe that if they are suffering from a medical condition, they will simply be denied insurance coverage.

Source-Medindia