Amerigroup Corp. revises outlook for costs

Amerigroup Corp., the Virginia Beach-based health insurer, said its 2011 earnings might come under pressure because of rising medical cost trends. In a filing Thursday with the SEC, the company said that it revised its health-benefits ratio for the full year to a range of 83.9 to 84.9 percent from a previous range of 83.1 to 84.1 percent in light of recent cost trends.

The health-benefits ratio measures medical expenses as a percentage of an insurer's premium revenue. A lower ratio is considered more favorable. Amerigroup, which specializes in managed care for beneficiaries of Medicaid and other government health care programs, said it will provide its early observations of third-quarter medical costs to investors today in New York City.