Amerigroup Corp, a health insurance company, has agreed to pay $225 million to settle federal and state claims of fraud in a government health insurance program.

Amerigroup Corp, a health insurance company, has agreed to pay $225 million to settle federal and state claims of fraud in a government health insurance program, the US Justice Department said on Thursday.

The pact, in coordination with Illinois regulators, settles allegations that the company's health plans excluded pregnant women and unhealthy patients in Illinois's Medicaid plan. Medicaid is the state-federal health plan for the poor.

The company also entered into a corporate integrity agreement with regulators, requiring it to enact new policies to prevent discrimination going forward.

Amerigroup shares were down 1.4 per cent to $25.52 in early afternoon trade on the New York Stock Exchange.

(Reporting by Kim Dixon; Editing by Tim Dobbyn)