Amerigroup Media Kit.

Transcription

1 Amerigroup Media Kit Media Contact Maureen C. McDonnell Vice President External Communications and Health Reform Amerigroup Corporation

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3 About Amerigroup Who We Are Amerigroup is the leading and largest publicly traded corporation that focuses solely on meeting the health care needs of financially vulnerable Americans. What We Do Amerigroup works exclusively through publicly funded programs such as Medicaid and Medicare. We have two goals. We help the financially vulnerable Americans we serve as well as seniors and people with disabilities to lead better, healthier and often more independent lives through preventive health care programs. And by helping them avoid unnecessary sickness, we help the state and federal governments that pay for Medicaid and Medicare save money. Who We Serve Amerigroup is a managed health care organization with more than 2.7 million members as of September 30, They live in Florida, Georgia, Louisiana, Maryland, Nevada, New Jersey, New Mexico, New York, Ohio, Tennessee, Texas, Virginia and Washington. Where We ve Been When Amerigroup was founded in 1994, we initially targeted the health problems of children, mothers and pregnant women enrolled s that address diseases and conditions common to them, including asthma, diabetes and inadequate prenatal care. Amerigroup expanded rapidly and became a publicly traded corporation in fall In 2005, Forbes magazine named Amerigroup one of America s Best Managed Companies. Amerigroup was also ranked No. 1 as top insurer by Modern Healthcare magazine for Best Places to Work in Healthcare. Where We re Going In recent years, spending on Medicaid has accelerated rapidly ($908 billion by 2020), and governments increasingly have turned to Amerigroup to help control costs. Amerigroup now serves a more diverse and seriously ill group of people including Supplemental Security Income-eligible recipients and seniors and people with disabilities addressing complex physical and psychological illnesses. In 2006, Amerigroup also entered the Medicare Advantage program, serving older, low-income people who are eligible for both Medicare and Medicaid through Special Needs Plans. In 2007, we began operation of traditional Medicare Advantage plans. Current Medicare expenditures are projected to hit $922 billion in Today, Amerigroup is the country s eighth largest publicly traded health care company, ranks No. 385 on Fortune magazine s list of America s 500 largest publicly traded corporations and was named among the Most Admired Companies by the magazine. In 2008, for the fourth time, Forbes magazine named Amerigroup one of America s Best Big Companies. Table of Contents About Amerigroup 1 National Advisory Board 2 Dual Eligibles Fast Facts 3 Risk-based Managed Care 4-5 Healthy Communities 6 Remote Area Medical 7 Childhood Obesity Prevention 8 Real Story: Lorri 9 Executive Bios

4 National Advisory Board National Advisory Board Members In 2007, Amerigroup developed a first for the health care industry: a National Advisory Board (NAB) focused solely on meeting the needs of seniors and people with disabilities a significant population within our membership. Convened by Lex Frieden, who was instrumental in conceiving and drafting the landmark Americans with Disabilities Act of 1990, the NAB is comprised of culturally diverse community advocates, health care experts and academics. They represent millions of Americans with disabilities and seniors and their family members, who have struggled with the complexities of our fragmented health care system. Individually and collectively, they have worked to overcome the many hurdles to obtain the services needed to live successfully in our communities hurdles such as the lack of coordination between acute and long-term services and supports, antiquated systems and policies, and lack of infrastructure development for long-term services. A Call to Action In April 2009, the NAB developed a white paper, A Declaration for Independence: A Call to Transform Health and Long-term Services for Seniors and People With Disabilities. This call to action is designed to bring attention and fuel change based on the principles of transforming and modernizing our health care system, including ways to address the long-term needs for services and supports needed by people with disabilities and those who are aging. The white paper outlines the following Six Foundational Principles required to meet the needs of people with disabilities and seniors, as follows: 1. Enhance Self-care Through Improved Coordination Transform America s health care system from one that focuses on episodic illnesses to one that assists individuals in self-managing their whole health, with the support of providers and communities 2. Encourage Community Integration and Involvement Coordinate support services, housing and transportation so people are able to participate in the social, economic, educational and recreational activities available through community living 3. Expand Accessibility to Services and Supports Retool programs and regulations to enable people to access the services they need to live independently without creating financial hardship for the family 4. Uphold Personal Preference Leverage the success of long-term service models that promote personal strengths and preferences and preserve the dignity of participants 5. Empower People to Participate in the Economic Mainstream Encourage the employment of people with disabilities and seniors by removing disincentives for people to work and redefine antiquated descriptions of disability 6. Invest in Improved Technology Invest resources in the continued development of technology that improves individuals abilities to self-monitor chronic health conditions and live independently The NAB advocates that the modernized health care infrastructure be required to meet the needs of people with disabilities and seniors. It will only come about as others (i.e., consumers, the medical community, policymakers, program directors, academics, health care organizations and human service providers) join in promoting the cause. 2 Use your smartphone to watch our video about the NAB. Get the free mobile app at / gettag.mobi

5 Dual Eligibles Fast Facts ABOUT DUAL ELIGIBLES More than 9 million Americans qualify for Medicare and are eligible for some level of Medicaid benefits. They receive health care in often fragmented settings from two distinct programs. Commonly referred to as dual eligibles, almost two-thirds are age 65 and older, are more likely to have a disability and are twice as likely to report poor health. Nearly half have family incomes below 100 percent of the Federal Poverty Level (FPL). There are two types of dual eligibles: Full Dual Eligibles Medicare beneficiaries who also qualify to receive full benefits offered by Medicaid and coverage of Medicare premiums and cost sharing Partial Dual Eligibles Medicare beneficiaries with somewhat higher household income who qualify for assistance with Medicare premiums and cost sharing through Medicaid programs known as Medicare Savings Programs Role of Medicare vs. medicaid Medicare Covers most acute care services and some long-term care services (e.g., nursing facility, home health and hospice) Medicaid Covers most long-term care services, provides some services that Medicare covers only in limited ways (e.g., vision, dental and transportation), and is responsible for some or all Medicare premiums and cost sharing Medicare Advantage Special Needs Plans Tailored health plans providing the full range of Medicare-covered services plus additional Medicaid services and lower out-of-pocket costs in a coordinated, person-centered setting reform focuses on dual eligibles Under health reform, the new Medicare Medicaid Coordination Office brings increased focus on ways to integrate care for dual eligibles. New demonstrations invite states to enter into three way partnerships with the Centers for Medicare & Medicaid Services and health plans to ensure the full spectrum of benefits and services are coordinated. Thirty-eight states expressed interest in participating, with 15 states selected to receive funding to support the design of programs to bring integrated care to dual eligibles in Right now, less than 15 percent of dual eligibles have access to comprehensive, coordinated care. Amerigroup serves 124,000 dual eligibles through Medicaid and Medicare Advantage across 8 states nationwide. 94% 9 Million Number of Medicare- Medicaid dual eligibles nationwide 15% Share of all dual eligibles who live below 200 percent of the FPL Medicare Medicaid Percent of Popula on Percent of dual eligibles in Medicare and Medicaid populations versus percent of costs $300 Billion Total government spending on dual eligibles. It makes up an oversized proportion of the Medicare and Medicaid programs total costs $434 Billion Percent of care for dual eligibles in coordinated care today 20% 200% Below FPL, or $22,000 Annually 15% 39% Percent of Cost 31% $330 Billion $300 Billion = 4,000 Dual Eligibles All Medicare All Medicaid Dual Eligibles 3

6 Benefits of Comprehensive Risk-Based Managed Care Comprehensive, risk-based managed care plans are the most prevalent type of managed care arrangements in Medicaid. This delivery model s success lies in improving quality of care, while also saving costs. The percentage of Medicaid enrollees in these programs has grown year over year. A recent report found that Medicaid enrollment in comprehensive risk-based programs increased to 47 percent of enrollees in 2009, up from 15 percent in Growth is expected to continue as 17 states expand their comprehensive risk-based managed care programs through These states include Texas and Louisiana, who have already switched to comprehensive risk-based managed care and overhauling their Medicaid programs. Two other states of the 17 are New Hampshire and Florida, which both have submitted requests for proposals for competitive bidding to switch many of their Medicaid participants over to risk-based comprehensive care. The fundamental idea behind the switch is (1) to improve access to care and coordination of care by ensuring enrollees have a medical home with a Primary Care Provider (PCP); and (2) to rely more heavily on preventive and primary care. Comprehensive, risk-based managed care plans offer case management programs that leverage technology and data to identify high-risk members who will benefit from hands-on, personal assistance. Using predictive modeling tools, data such as diagnoses, hospitalizations, emergency room encounters, expenditures and demographics are used to develop individualized risk profiles, allowing plans and providers to personalize care for each enrollee. States typically use a Managed Care Organization (MCO) model in which enrollees are assured access to a network of primary and specialty care providers. In the Medicaid Fee-For-Service (FFS) environment, Medicaid beneficiaries often lack access to a medical home, and turn to higher-cost and less coordinated sources of care, such as hospital emergency rooms. In other managed care approaches that employ the FFS payment delivery system, such as Administrative Service Organizations (ASOs) or Primary Care Case Management (PCCM), access to a medical home is highly variable, and the state reimburses providers according to each of the services rendered. Comprehensive managed care plans assume the financial risk, receiving a fixed monthly capitation rate to provide all or a defined set of covered services for each enrollee. This payment arrangement provides incentives to managed care plans that support a collaborative approach with health providers, enrollees and caregivers, emphasizing early identification and treatment of health issues and coordinated management of patients conditions. Summary Comparison of Cost-Containment Features of Various Medicaid Models 4

7 Increasingly, states are turning to comprehensive, risk-based managed care as a tool to coordinate care for enrollees, provide greater control and predictability over Medicaid spending, and establish provider networks for enrollees. Percentage of Medicaid Enrollees in Medicaid Managed Care in Risk-Based Managed Care, 1995 and (excludes limited-benefit plans) % 38% 40% 40% 41% 42% 43% 46% 46% 47% 48% % Source: The MACPAC Report to Congress, The Evolution of Managed Care in Medicaid, June Comprehensive risk-based managed care: States establish a contract with multiple managed care plans to provide Medicaid beneficiaries a choice of plans, covering all or most Medicaid-covered services. Plans have more flexibility than FFS to offer additional services that improve their members health. Plans are at financial risk if spending on benefits and administration exceeds payments, and must demonstrate their financial solvency to take on that risk. Plans work with their members to select a PCP as their medical home, and the PCP works with the plan to coordinate care. Plans are accountable to the state for improving member health outcomes, ensuring an adequate provider network, and meeting other state requirements, such as licensure or accreditation by an organization such as the National Committee for Quality Assurance. Programs are designed to increase quality, cost less than FFS due to better access to and coordination of care, prevent fraud and abuse, and offer budget certainty PCCM: Medicaid PCCM requires a Medicaid enrollee to choose a PCP that is responsible for coordinating the enrollee s care and the PCP is paid a monthly fee for doing so, in addition to a payment for providing medical services. In general, all medical services are reimbursed on a FFS basis. PCCM is similar to a traditional FFS Medicaid model with basic care coordination that varies widely by provider. States vary highly in the degree of support and oversight they provide over PCCM programs Accountable Care Organizations (ACOs): ACOs were proposed as an alternative to current payment and service-delivery models, primarily for Medicare by creating a network of doctors and hospitals that share responsibility for providing care. They are emerging in Medicaid, but are not well-established, and there is no data on their success in the Medicaid environment. Building an ACO is likely to require the investment of considerable capital by the hospitals and providers. Another dilemma is the governance and structure of the ACO: It is uncertain who will lead them because the law does not prescribe a specific requirement. The American Medical Association suggests physician-led ACOs, but many people think hospitals have a greater chance of taking the helm. 2,3 FFS: Under the FFS system, providers obtain reimbursement from the state as services are rendered. Authorization procedures and care coordination are limited. Enrollees and caregivers receive minimal assistance in navigating the health care system to ensure they receive necessary services 1.The Medicaid and CHIP Payment Access Commission (MACPAC) Report to the Congress, The Evolution of Managed Care in Medicaid, June Tara Adams Ragone, The Normative Meets the Practical: Who Can Lead ACOs, Health Reform Watch, Seton Hall University School of Law, Health Law & Policy Program (April 12, 2011). 3.Scott Gottlieb, Accountable Care Organizations: The End of Innovation in Medicine? American Enterprise Institute for Public Policy Research No. 3 (February 2011). 5

8 Amerigroup Supports Healthy Communities Overview Amerigroup Corporation improves the quality of life in the communities in which members and associates reside due to the efforts of two particular branches of the Company: the Amerigroup Foundation and the Amerigroup Community Volunteers program. With a growing number of members and programs throughout the country, the Foundation and Community Volunteers program are both dedicated to promoting community improvement and encouraging safe and healthy children, families and individuals of all ages. Amerigroup associates participating in the JT Walk for ALS. Community Volunteers The Amerigroup Community Volunteers program is a reflection of our belief that real solutions in health care begin when we put our passion and care to work. As a testament to this belief, in 2011, Amerigroup associates dedicated 21,234 hours toward volunteer efforts. As part of these overall efforts, each Amerigroup associate is granted a volunteer day of paid leave. This compensation policy is evidence that Amerigroup values the time associates put into genuine volunteer efforts. In addition, the Amerigroup Disaster Response Team, which operates as a part of the Community Volunteers program, is an example of associates improving communities by providing the time, energy and resources needed to have a measurable impact. What began as a grassroots initiative, the Disaster Response Team currently provides assistance to communities struck by disaster, specifically to people with disabilities who are often at additional risk and exposure during disasters. Amerigroup has partnered with the federal government and the Red Cross to develop training and is working to expand this program. Amerigroup Foundation The Amerigroup Foundation is the philanthropic branch of the Amerigroup Corporation. The Foundation works to create healthy communities by fostering access to health care, encouraging healthy children and families, and promoting education improvements and healthy neighborhoods. In the past year, the Foundation contributed $2.4 million to various community organizations across the country. Since its inception in 2001, the Foundation has awarded a total of $16.1 million to worthy causes that align with the Amerigroup mission of doing well by doing good. Through two new programs, the Foundation directly connects charitable resources with associate-led volunteer initiatives. First, the Workplace Giving Campaign matches associate donations with Amerigroup Foundation funds. Secondly, in the Dollars for Doers program, nonprofit organizations to which employees donate hours of their time annually will receive a cash donation from the Foundation. As a result of this program, the Foundation donated approximately $21,000 to nonprofit organizations in the past year. Virginia Beach Mayor Will Sessoms and members of the community at the Grommet Island Park for EveryBODY ribbon-cutting ceremony Amerigroup contributed to the building of the park and continues to raise funds for its maintenance. 6

9 Amerigroup Foundation Helps Relieve Health Care Disparities Through Remote Area Medical Event For the second consecutive year, the philanthropic arm of Amerigroup the Amerigroup Foundation partnered with the Remote Area Medical (RAM) clinic in Wise, Va., in July RAM is a nonprofit, all-volunteer medical relief corps serving remote and impoverished areas across the United States and abroad. An estimated 2,500 people attended the 2012 event for the opportunity to receive medical, dental and vision treatment. For many participants, this was their only chance all year to see a doctor, and some waited in line as long as 30 hours for their chance to receive care. This year s RAM event provided an estimated $2 million in free medical services, which are calculated at Medicaid rates for the commonwealth of Virginia. More than 1,400 volunteers, including 30 associates from Amerigroup, provided hands-on assistance. Amerigroup An estimated 2,500 people attended the 2012 RAM event in Wise, Va. volunteers donated 1,000 hours of community service at the 2012 event. In addition to the volunteer effort, the Amerigroup Foundation has provided more than $290,000 in support of the clinic during our two years of participation, including $120,000 to the Health Wagon, $80,000 to the Virginia Dental Amerigroup has allowed us to expand our reach into underserved communities. Their support will benefit the community at large, decrease the disparities in health care, increase health literacy and encourage better personal choices. Dr. Terry D. Dickinson Executive Director of the Virginia Dental Association Foundation Association Foundation and $40,000 to the University of Virginia Office of Telemedicine. Additionally, in 2011 Amerigroup provided an additional $20,000 to the Health Wagon to purchase a portable X-ray machine; an estimated $30,000 worth of grocery totes filled with day-of supplies; and 1,000 overthe-counter medications, such as acetaminophen and ibuprofen. RAM is a living example of our values in action. We re creating a culture of service by providing real solutions to the people who need it the most, said Amerigroup Chairman and CEO Jim Carlson, who has volunteered at patient check-in both years. This clinic won t solve all of their problems, but it was our chance to help ease their burden for a weekend. A recent study published by the University of Virginia School of Medicine found that residents living in Virginia Appalachian county communities are not receiving adequate health care, even among those with health insurance. 1 According to the study, people who live in rural communities are less likely to seek medical care or receive specialized treatments due to lack of insurance, inability to make co-payments or lack of transportation to medical providers. In comparison to the rest of the nation, this area has poverty rates of 125 percent above the national average and earns 67 percent less income. The barriers to health care affecting Appalachian residents closely resemble those faced by significant portions of our membership. In committing to these outreach efforts, we advance our understanding of our members needs. Use your smartphone to watch a video on RAM 1 E.L McGarvey et al., Health Disparities Between Appalachian and Non-Appalachian Counties in Virginia USA (Charlottesville, VA: Springerlink.com, 2010). Get the free mobile app at / gettag.mobi 7

10 Childhood Obesity Prevention Through Education Real Story Amerigroup Health Educator MaryAnne Kokidis engages students in learning about nutrition during a health education workshop. According to the Centers for Disease Control and Prevention, nearly 12.5 million children and adolescents between the ages of 2 and 19 are obese. Amerigroup believes implementing early education will help raise awareness of the obesity epidemic facing our country. Our health education workshops serve to prevent obesity before it begins. MaryAnne Kokidis, an Amerigroup health educator, engages schoolchildren in interactive presentations that provide information the students can use at home and later in life. In a typical day, 80 percent of youths consume more than 11 percent of their calories from items such as soda and sports drinks. MaryAnne helps illustrate this point by asking students to help count the tablespoons of sugar contained in one bottle of soda. By breaking down the composition of the students favorite drinks and treats, MaryAnne educates the students about nutritional facts and teaches them to be aware of what they consume. It s really great when you see the kids are participating, and they re learning something new that they actually might be able to use when they leave the class, MaryAnne said. Obese teens are 16 times more likely to become severely obese adults than teenagers of normal weight, increasing the importance of understanding the consequences of childhood obesity. Approximately 17 percent of U.S. health care costs are due to obesity. Not only are overweight children at greater risk of having high blood pressure, high cholesterol and breathing problems, but they are also more likely to endure social and psychological implications from society and peers. While nutritional workshops alone will not solve the obesity epidemic, Amerigroup hopes to provide a starting point for discussion and awareness. Lessons extend beyond the classroom when children go home and share what they learned about the food they eat with their parents and family members. Instead of simply managing the existing health conditions facing children and adults today, Amerigroup is proactive in being a part of the solution. Through our community outreach efforts, such as these health education workshops, we better understand and prevent the issues facing our members and the communities in which they live. MaryAnne is one example of how Amerigroup goes above and beyond to encourage healthier and better lifestyles for our members and the community. Preventing problems before they begin. Another real solution from Amerigroup. Use your smartphone to watch a video of our Real Story Get the free mobile app at / gettag.mobi 8

11 Empowering Members to Choose the Care They Need Real Story Lorri was born with infantile cerebral palsy, a condition that disrupts the brain s ability to control movement and posture. In Lorri s case, the only part of her body she can move on her own is her right index finger. As a result, she is totally dependent on other people to help her. Lorri used to live in a deteriorating high-rise apartment building. She received care 24 hours a day, seven days a week from certified nursing assistants. By contract, these assistants were not allowed to travel with her outside the apartment, making Lorri a prisoner in her own home. It was costing the state more than $200,000 a year, said Tina Brill, vice president of Long-term Care for Amerigroup Tennessee. Lorri (right) and one of her personal care companions at a bowling alley. In 2010, Tennessee created a new program for people like Lorri. It has a consumer-directed option that lets members choose and hire their own workers. It also allows them to use personal care companions instead of certified nursing assistants. In Lorri s case, she doesn t need nursing care. She needs help with bathing, dressing, eating and hygiene. By hiring a mother-and-daughter team, Eryn and Robin, to be her consumer-directed workers, Lorri gets the right level of care at home. As an added bonus, they can go with her wherever she wants. Since joining this program, Lorri has seen her life change dramatically. Lorri is very active. She has lots of energy. She loves bowling, Eryn said, smiling. Now, Lorri is so happy. She just glows. There is another side to this story, as well. Not only is Lorri getting the care she needs, instead of costing hundreds of thousands of dollars, her care is now costing $55,000 a year, Tina added. Not only is Lorri getting the care she needs, instead of costing hundreds of thousands of dollars, her care is now costing $55,000 a year. Tina Brill Amerigroup vice president of Long-term Care Today, Lorri leads an active lifestyle that includes going to work, competing in bowling tournaments and having lunch with the governor. In Lorri s own words, I love it. It gives me more freedom. Empowering our members to choose the care they need: another real solution from Amerigroup. 9

12 Executive Biographies James G. Carlson has enjoyed a distinguished career with more than 30 years of experience in health insurance. In September 2007, he became the second chief executive officer in the 18-year history of Amerigroup, having previously served as president and chief operating officer of the Company, a position he held since Under his leadership, Amerigroup has more than doubled the number of state Medicaid programs it serves, while revenues have grown substantially, positioning the Company in the Fortune 500. Mr. Carlson has strengthened the operational and medical management processes of Amerigroup and has recruited experienced executives to help expand the business, securing the position of Amerigroup as one of the leading voices on behalf of health care for the financially vulnerable, seniors and people with disabilities. Earlier in his career, Mr. Carlson was an executive vice president of UnitedHealth Group and president of its UnitedHealthcare business unit. Mr. Carlson was also the founder of HealthSpring, a physician group practice management company, and co-founder of Workscape, a software company that was later acquired by ADP. He began his career with the Prudential Insurance Company of America, serving as president of Western Group Operations. Mr. Carlson attended Morningside College in Sioux City, Iowa, and graduated from Rider University in New Jersey. He serves on the boards of the National Kidney Foundation, the Virginia Aquarium & Marine Science Center and the Virginia Beach Neptune Festival, as well as America s Health Insurance Plans, Morningside College, the Health Sector Advisory Council for the Fuqua School of Business at Duke University and Virginia Gov. Robert F. McDonnell s Health Reform Initiative Advisory Council. John E. Littel is executive vice president of External Relations. He is responsible for Amerigroup communications, corporate compliance, and government and community affairs initiatives, including new business development. He also chairs the Company s charitable foundation. Mr. Littel joined Amerigroup from the Bush administration and previously was deputy director and counsel for the citizenship project at the Heritage Foundation. He served as the deputy secretary of Health and Human Resources for the commonwealth of Virginia. On the federal level, he served as the director of intergovernmental affairs for the White House s Office of National Drug Control Policy under President George H.W. Bush. He has taught government, politics and communications at the graduate level. He began his career in Pennsylvania as a regional office manager for the late U.S. Sen. H. John Heinz III and is a member of the Pennsylvania Bar. He earned his bachelor s degree in philosophy and political science from the University of Scranton and a law degree from The Columbus School of Law at Catholic University. Mr. Littel previously served on the boards of the Family and Children s Trust Fund Board, which is Virginia s family violence prevention agency, and ForKids, a program for homeless families in Norfolk, Va. 10

13 Mary T. McCluskey, M.D., is executive vice president and chief medical officer for Amerigroup, overseeing health care services for the more than 2 million members of Amerigroup. Prior to Amerigroup, Dr. McCluskey served in a variety of senior medical positions with Aetna Inc., most recently as chief medical officer, Northeast region. In this role, she was the senior clinical and medical quality leader for a division that provided health insurance for 2.4 million people through employer-sponsored and Medicare programs. Under her guidance, the company s Northeast region earned an excellent accreditation rating from the National Committee for Quality Assurance. Her previous positions at Aetna included national medical director and head of Clinical Cost Management and senior regional medical director, Southeast region. Prior to Aetna, Dr. McCluskey was vice president of Medical Affairs for Medpartners Medical Management in Tampa, Fla. She previously served as internist and medical director of Bridgeton Health Center in St. Louis. Dr. McCluskey began her career as an urgent care physician in St. Louis. A graduate of St. Louis University and the St. Louis University School of Medicine, she completed her residency in internal medicine at Jewish Hospital/Washington University. Nicholas J. Pace is executive vice president, general counsel and secretary for Amerigroup. Mr. Pace joined Amerigroup in 2006 and previously served the Company as senior vice president, deputy general counsel and assistant secretary. His areas of responsibility include corporate governance, U.S. Securities and Exchange Commission and New York Stock Exchange reporting and compliance, corporate finance, and mergers and acquisitions. Prior to joining Amerigroup, Mr. Pace served as assistant general counsel for CarMax Inc., where his focus included corporate governance, corporate finance, and mergers and acquisitions. In private practice, he was associated with Morrison & Foerster LLP, where he advised issuers and investors on corporate governance matters, securities and debt offerings, venture capital financing, and mergers and acquisitions. Prior to practicing law, Mr. Pace served as consultant in Ernst & Young s tax group. He earned his Bachelor of Science in both accountancy and finance from Miami University in Ohio and a graduate cum laude from the University of Richmond T.C. Williams School of Law. He also holds a master s degree in business administration from the University of Richmond E. Claiborne Robins School of Business. Leon A. Root is executive vice president and chief information officer of Amerigroup. In this role, he is responsible for the information systems and strategies to meet organizational business goals. Mr. Root joined the Company in 2002 as chief technology officer. Previously, he served as chief information officer at Medunite Inc., a private e-commerce company founded by Aetna, CIGNA, PacifiCare Health Systems and five other managed care companies. Medunite focuses on secure, web-enabled administrative transactions and services for health care constituents. At Medunite, he was responsible for the information technology and operations division. Also, he was the senior vice president and general manager at McKesson HBOC s business systems division. Mr. Root began his career as a systems architect at Eastman Kodak. He earned his Master of Science in Business Administration from Pennsylvania State University 11

14 Executive Biographies James W. Truess is executive vice president and chief financial officer of Amerigroup, overseeing all aspects of the Company s financial operations. Mr. Truess has enjoyed more than a two-decade career in financial roles, including the past 20 years in the managed care industry and the last 13 years as a chief financial officer. Prior to joining Amerigroup, he served as executive vice president, chief financial officer and treasurer of Group Health Cooperative, one of the largest vertically integrated health maintenance organizations in the country. Mr. Truess holds a master s degree in finance from Seattle University and a bachelor s degree in business administration from the University of Washington. He is a Chartered Financial Analyst charter holder. Linda K. Whitley-Taylor is executive vice president of Human Resources for Amerigroup. In this position, Ms. Whitley-Taylor is responsible for human resource functions and programs, including associate policy development, compensation and benefits administration, travel and events planning, and training and leadership development. She has two decades of experience in the field of human resources and talent development. Ms. Whitley-Taylor came to Amerigroup from Genworth Financial, where she served as senior vice president of Human Resources Operations at the company s Richmond, Va., headquarters. At Genworth, her roles in human resources, training and quality steadily increased in responsibilities and scope, ultimately resulting in oversight of human resources operations for 6,500 employees in 24 countries. In addition to her international experience, Ms. Whitley-Taylor has significant experience in talent development and people strategy initiatives. 12 Richard C. Zoretic is executive vice president and chief operating officer of Amerigroup. In this role, he is responsible for Amerigroup health plan operations in 12 states, as well as the Health Care Management Services, Health Care Delivery Systems, Health Care Economics and Customer Service operations. With three decades of experience in managed care and health care benefits, Mr. Zoretic joined Amerigroup in 2003 as chief marketing officer. In 2005, Mr. Zoretic transitioned into health plan operations, assuming responsibility for the Southern region of Amerigroup. In 2006, he assumed responsibility for all health plan operations and was promoted to his current position in Mr. Zoretic began his career in 1980 with MetLife s Group Life & Health operations, where he held a series of positions of increasing responsibility over a 13-year period. From 1994 to 2000, he held several leadership positions at UnitedHealth Group, including senior vice president of UnitedHealthcare s Mid-Atlantic operations and president of the company s Middle Market Business segment. He subsequently served as a management consultant in Deloitte Consulting s health care practice. Mr. Zoretic earned a degree in finance at Pennsylvania State University. He currently serves as the chairman of the board for Eastern Virginia Medical School Health Services, a not-for-profit physician practice affiliated with Eastern Virginia Medical School, with more than 150 physicians representing 20 specialties. He is also a member of the board of visitors for Eastern Virginia Medical School, and he serves on the boards of Families of Autistic Children of Tidewater and Cape Henry Collegiate School.

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16 Amerigroup Plan Service Area Amerigroup health plans serve beneficiaries through a variety of public programs in 13 states, including Medicaid, Medicare, Temporary Assistance for Needy Families (TANF), Seniors and People with Disabilities (SPD)/Supplemental Security Income (SSI), and Children s Health Insurance Program (CHIP). We began serving Washington on July 1, State Florida Georgia Louisiana Maryland Nevada New Jersey New Mexico New York Ohio Tennessee Texas Virginia Washington TANF CHIP SPD/SSI Medicare Total Membership 2,737,000* * Membership as of 9/30/12. 9/2012