Amerigroup OKs $225 million settlement

Illinois Attorney General Lisa Madigan said in a statement that "our goal has been to send a clear message that the state of Illinois will not tolerate interference with the health and well being of Illinoisans."

Amerigroup said in its statement that the company would reap a $35 million tax benefit from the settlement and take a one-time charge of $199 million in the second quarter that ended June 30.

It said the company will pay the settlement from restricted funds previously established to cover costs related to the judgment. After the payment, which is expected to occur in the third quarter, the company's unrestricted cash balance will increase by approximately $117 million due to the release of the remainder of the restricted funds.

The 13-year-old company reported $3.9 billion in revenues in 2007 and provides services to 1.7 million people in Florida, Georgia, Maryland, New Jersey, New Mexico, New York, Ohio, South Carolina, Tennessee, Texas and Virginia.