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

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”), the Illinois Department of Healthcare & Family Services (formerly Public Aid), 000 Xxxxx Xxxxx Xxxxxx Xxxx, Xxxxxxxxxxx, Xxxxxxxx 00000-0000 (herein referred to as “Department”), acting by and through its Director, and AMERIGROUP Illinois, Inc., 000 Xxxx Xxxxxx Xxxxx, Xxxxx 0000, Xxxxxxx, XX 00000 (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/ Xxxxx Xxxxxxxxx
		Xxxxx X. Xxxxx
						Printed Name:		XXXXX XXXXXXXXX
Title:		Director				Title:		CEO
Date:						Date:		12/28/05
						Fein:		00-0000000

Page 1 of 1

SECOND AMENDED ATTACHMENT I

RATE SHEETS

(a)		Contractor Name:		AMERIGROUP Illinois, Inc.
		Address:		000 Xxxx Xxxxxx Xxxxx, Xxxxx 0000
				Xxxxxxx, XX 00000
(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, effective August 1, 2003 through July 31, 2005:

		Region I				Region II				Region III				Region IV				Region V
Age/Gender		(N.W.				(Central				(Southern				(Xxxx				(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
00Xxx Xxxx and Female			437.86				486.40				476.29				359.61				409.17

Att. I - 1

     Standard Capitation Rates for Enrollees, effective August 1, 2005 through December 31, 2005:

		Region I				Region II				Region III				Region IV				Region V
Age/Gender		(N.W.				(Central				(Southern				(Xxxx				(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
00Xxx Xxxx and Female			277.48				310.00				275.75				258.08				273.13

Standard Capitation Rates for Enrollees, effective January 1, 2006 through July 31, 2006:

		Region I				Region II				Region III				Region IV				Region V
Age/Gender		(N.W.				(Central				(Southern				(Xxxx				(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
00Xxx Xxxx and Female			277.85				310.54				276.86				258.60				273.38

(f) Hospital Delivery Case Rate, effective August 1, 2003 through July 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, effective August 1, 2005 through July 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