By Jon Kamp
The State of Kansas said Wednesday it has picked units of UnitedHealth Group Inc. (UNH), Centene Corp. (CNC) and Amerigroup Corp. (AGP) to cover Medicaid members starting Jan. 1, with a goal of saving more than $1 billion over five years.
The Kansas awards are the latest in a string of state partnerships with managed-care firms aimed at restraining costs and improving care in the health program for the poor, which is jointly paid for by states and the federal government.
According to a state press release, the awards for the three insurers followed "an extensive bidding and review process." The savings estimate is up from an original target of $853 million over five years when the state's "KanCare" Medicaid overhaul program was announced in November.
Amerigroup shares recently traded up 0.9% to $62.74 while UnitedHealth Group rose 0.9% to $59.34. Centene was down 0.3% at $30.22.
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