A Federal District Court judge in Chicago has ruled that insurance company Amerigroup Corp. and its affiliate Amerigroup Illinois owe more than $334 million in damages and penalties for discriminating against pregnant women.
Last October a federal jury found both companies liable for systematically defrauding Medicaid and awarded $48 million, which was automatically tripled under the federal False Claims Act and the Illinois Whistleblower Reward and Protection Act to $144 million. Judge Harry D. Leinenweber added to that amount more than $190 million in civil penalties.
The suit originated as a whistleblower case brought under the qui tam provisions of the state and federal acts. The companies, paid to set up a Medicaid managed care program in the state, deliberately and illegally set out to avoid signing up pregnant women and others with expensive health conditions.