CARSON CITY, Nev. (AP) - Amerigroup Nevada has replaced Anthem
Blue Cross Blue Shield as a health maintenance organization for the
state's Medicaid program, state officials have announced.

Starting Feb. 1, Amerigroup, a subsidiary of Virginia-based Amerigroup Corp., will provide health care coverage to more than 49,000 Medicaid recipients. Anthem is ending its two-year contract with Nevada Medicaid at the end of the year.

Health Plan of Nevada, a subsidiary of Sierra Health Services, is the other HMO plan. It covers 61,838 Medicaid recipients, according to Chuck Duarte, administrator of the state's Division of Health Care Financing and Policy.

Duarte said the move isn't going to impact Health Plan of Nevada or cause any disruption in coverage to Anthem members transitioning to Amerigroup, which has a contract for 2½ years. He added that the state is working with Amerigroup to notify Anthem enrollees about
the change.

When enrolling in Medicaid, people who qualify can choose between Health Plan of Nevada and Amerigroup. However, once an insurance provider has reached a certain number of members, Medicaid recipients will automatically be assigned to the other plan.

"Unfortunately, like many other states, Nevada is faced with severe economic challenges coupled with increasing medical costs. Consequently the state cannot increase the level of reimbursement
needed to keep up with rising medical costs," Sally Vogler, a spokeswoman for Anthem, said in an e-mail about the insurance
provider's decision to withdraw from Nevada Medicaid.

(Copyright 2008 by The Associated Press. All Rights Reserved.)