DoJ clears WellPoint-Amerigroup merger deal

The Department of Justice yesterday cleared a $4.6 billion deal between WellPoint and Amerigroup, the Associated Press reported. Announced in July, the deal raised concerns that the combined organizations would create a consolidation in northern Virginia, as the two are already the sole Medicaid managed care plans in the area. However, Justice officials said Amerigroup's agreement to sell Virginia business, Amerigroup Virginia, to the Inova Health System Foundation ensures market competition and, therefore, clears the path for the WellPoint-Amerigroup deal to move forward. Article

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