Amerigroup 10-Q 2006 Q1 Quarterly report

Exhibit 10.7.9

STATE OF ILLINOIS
DEPARTMENT OF PUBLIC AID

AMENDMENT NO. 3 TO THE
CONTRACT FOR FURNISHING HEALTH SERVICES

BY A
MANAGED CARE ORGANIZATION
2004-24-001-KA3

Whereas, the parties to the Contract for Furnishing Health Services by a Managed Care Organization (“CONTRACT”), theIllinois Department of Healthcare&Family Services (formerly Public Aid),201 South Grand Avenue East, Springfield, Illinois 62763-0001 (herein referred to as “Department”), acting by and through its Director, andAMERIGROUP Illinois, Inc.,211 West Wacker Drive, Suite 1350, Chicago, IL 60606 (hereinafter referred to as “Contractor”), desire to amend the CONTRACT; and

WHEREAS,pursuant to Article 9, Section 9.9 (a) of the CONTRACT, the CONTRACT may be modified or amended by the mutual consent of the parties; and

WHEREAS,the Department’s actuary has certified that the Contract and rates resulting from this amendment are actuarially sound;

NOW THEREFORE,the parties agree to amend the contract as follows:

1. First Amended Attachment I shall be deleted and replaced by the attached Second Amended Attachment I. Each reference to Attachment I or First Amended Attachment I in the Contract shall be replaced with a reference to Second Amended Attachment I.

All other terms and conditions of the CONTRACT shall remain in full force and effect.

IN WITNESS WHEREOF,the parties have hereunto caused this agreement to amend the CONTRACT to be executed by their duly authorized representatives, effective January 1, 2006.

DEPARTMENT OF HEALTHCARE & FAMILY SERVICES		AMERIGROUP ILLINOIS, INC.
By:		By:	/s/ Jared Rosenthal
	Barry S. Maram
		Printed Name:	JARED ROSENTHAL
Title:	Director	Title:	CEO
Date:		Date:	12/28/05
		Fein:	54-1761812

Page 1 of 1

SECOND AMENDED ATTACHMENT I

RATE SHEETS

(a)	Contractor Name:	AMERIGROUP Illinois, Inc.
	Address:	211 West Wacker Drive, Suite 1350
		Chicago, IL 60606
(b)	Contracting Area(s) Covered by the Contractor and Enrollment Limit:

Contracting Area	Enrollment Limit
Region IV	100,000

(c)	Total Enrollment Limit for all Contracting Areas: 100,000
(d)	Threshold Review Levels: 80,000
(e)	Standard Capitation Rates for Enrollees, effectiveAugust 1, 2003throughJuly 31, 2005:

	Region I		Region II		Region III		Region IV		Region V
Age/Gender	(N.W.		(Central		(Southern		(Cook		(Collar
Mo = month	Illinois)		Illinois)		Illinois)		County)		Counties)
Yr = year	PMPM		PMPM		PMPM		PMPM		PMPM
0-3Mo	$	1,152.25	$	1,178.77	$	1,242.71	$	1,244.64	$	854.58
4Mo-1Yr		127.81		117.63		165.94		125.04		108.35
2Yr-5Yr		63.77		67.81		71.74		58.67		56.28
6Yr-13Yr		72.08		79.78		75.18		58.18		57.47
14Yr-20Yr, Male		115.93		135.96		131.18		90.67		142.60
14Yr-20Y, Female		148.51		157.40		155.15		112.48		119.82
21Yr-44Yr, Male		161.79		216.53		201.90		164.23		159.43
21Yr-44Yr, Female		217.61		228.14		237.13		185.81		184.20
45Yr+ Male and Female		437.86		486.40		476.29		359.61		409.17

Att. I - 1

     Standard Capitation Rates for Enrollees, effectiveAugust 1, 2005throughDecember 31, 2005:

	Region I		Region II		Region III		Region IV		Region V
Age/Gender	(N.W.		(Central		(Southern		(Cook		(Collar
Mo = month	Illinois)		Illinois)		Illinois)		County)		Counties)
Yr = year	PMPM		PMPM		PMPM		PMPM		PMPM
0-3Mo	$	1,342.61	$	1,178.83	$	1,271.32	$	1,369.28	$	948.46
4Mo-1Yr		121.62		109.83		154.41		117.41		99.27
2Yr-5Yr		53.51		57.02		59.41		51.49		49.60
6Yr-13Yr		49.37		51.29		52.22		45.53		42.00
14Yr-20Yr, Male		85.90		92.02		85.37		70.16		100.73
14Yr-20Y, Female		127.53		128.58		123.97		94.84		98.76
21Yr-44Yr, Male		113.28		161.06		139.13		121.91		110.33
21 Yr-44Yr, Female		164.91		167.03		168.42		148.97		141.81
45Yr+ Male and Female		277.48		310.00		275.75		258.08		273.13

Standard Capitation Rates for Enrollees, effectiveJanuary 1, 2006throughJuly 31, 2006:

	Region I		Region II		Region III		Region IV		Region V
Age/Gender	(N.W.		(Central		(Southern		(Cook		(Collar
Mo = month	Illinois)		Illinois)		Illinois)		County)		Counties)
Yr = year	PMPM		PMPM		PMPM		PMPM		PMPM
0-3Mo	$	1,361.60	$	1,193.95	$	1,283.86	$	1,379.13	$	967.15
4Mo-1Yr		131.76		117.74		161.46		124.11		109.20
2Yr-5Yr		57.39		60.36		62.06		54.89		53.37
6Yr-13Yr		51.57		53.28		53.69		47.37		43.96
14Yr-20Yr, Male		87.51		93.46		86.43		71.41		102.00
14Yr-20Y, Female		129.71		130.56		125.42		96.23		100.46
21Yr-44Yr, Male		113.43		161.32		139.61		122.11		110.39
21 Yr-44Yr, Female		165.30		167.59		169.54		149.54		142.11
45Yr+ Male and Female		277.85		310.54		276.86		258.60		273.38

(f) Hospital Delivery Case Rate, effectiveAugust 1, 2003throughJuly 31, 2005:

Hospital Delivery Case
Rate	$	3,196.12	$	3,104.66	$	3,281.22	$	3,748.33	$	3,276.03
(per delivery)

     Hospital Delivery Case Rate, effectiveAugust 1, 2005throughJuly 31, 2006:

Hospital Delivery Case
Rate	$	3,008.88	$	2,900.77	$	3,100.59	$	3,431.08	$	3,113.07
(per delivery)

Att. I - 2