According to law, Health insurer Amerigroup was required to enroll all eligible beneficiaries in the state of Illinois Medicaid program. Basically Medicaid is the state-federal health plan for the poor. Allegations were filed against Amerigroup Corp for not adhering to the rules of the Medicaid program.

Petitioners claimed that Amerigroup avoided enrolling pregnant women and unhealthy patients in their Medicaid managed-care program in Illinois due to monetary reasons. This legal battle was started by a former employee of Amerigroup, the whistleblower, Cleveland Tyson. Later government authorities intervened in this case.

Finally court has decided in favor of petitioners against Amerigroup Corp.  The Justice Department and Illinois attorney general said on Thursday that Health insurer Amerigroup Corp will pay $225 million to resolve allegations that it defrauded the state of Illinois Medicaid program. Cleveland Tyson will receive $56 million, a 25% share of the settlement.

According to sources, Amerigroup has agreed to enter into a “corporate integrity agreement” with the U.S. Health and Human Services Department’s Office of Inspector General as part of settlement. The present agreement is applicable to all the states where Amerigroup operates. The agreement says that the company is required to follow policies, procedures and a code of conduct made to prevent discrimination in its marketing and enrolment practices.

However Amerigroup claims that it adopted its enrollment policies to dispel the concerns of state officials who believed that it was enrolling too many women in later pregnancies.

Amerigroup Chairman James G. Carlson said. "Our responsibility to our shareholders, associates, members, providers and government partners is to close this chapter now and move toward the future".