WellPoint to Acquire Amerigroup amid Health Care Overhaul - Article Example

The national insurer sought to take advantage of the expansion in health care as promoted by the Obama Administration.             As stated in the article, WellPoint is today one of the leading insurers with better health insurance covers under Blue Shield and Blue Cross brands. Currently, it is operating in thirteen states in the country. The move to purchase Amerigroup will definitely bolster the company’s presence in financing Medicaid for low-income persons and Medicare for those persons who are considered to be disabled and elderly members of the society.

This would result in a closing price of $ 64.34. With the move in place, the company will be expecting that the deal will significantly add earnings in the coming years. For instance, it anticipates adding more than a dollar for every share by 2015. I feel that such an acquisition will ultimately help the citizens who seek cheaper but quality healthcare services.