The Board of Examiners on Monday approved a $361.8 million contract with AMERIGROUP to provide services to Nevada Medicaid and Nevada Checkup members.
AMERIGROUP replaces Anthem, which terminated its contract with the state, saying the 3.6 percent rate increase effective Jan. 1 wasn't enough.
Health Care Financing and Policy Director Charles Duarte said the state couldn't reach a compromise with Anthem because the federal government requires the pay rate to be actuarially sound.
"I can't just make something up," he said. "It has to be a rate that was determined to be appropriate."
AMERIGROUP will take over with the start of the new year. The company will provide all HMO services, including claims administration for Medicaid patients for a fixed monthly rate. Those services are provided primarily in the urban areas of the state. They will serve about 40,000 of the more than 50,000 on Medicaid and 8,500 of the 27,500 children served by Nevada Checkup.
In addition, the board approved payment of $4.2 million in senior citizen property tax refunds. The property tax refunds to those seniors below the poverty level have already been sent out. These payments, the board was told, are for those senior homeowners who are above the poverty line but still low income.
Director of Administration Andrew Clinger said the average payment to the 12,711 seniors on the list is $334. Those payments range from $6 to $486 for the year.
The board, consisting of the governor, attorney general and secretary of state, approves all state contracts.
They also gave Nevada Magazine permission Monday to enter agreements that trade advertising space for travel services.
- Contact reporter Geoff Dornan at gdornan@nevadaappeal.com or 687-8750.