Two companies pick up potentially billions in TRICARE awards

Two companies have won contracts with the Defense Health Agency to provide managed care support to the Defense Department’s TRICARE program in the newly created East and West regions.

The winners are:

• Humana Government Business Inc. – $67.4 million
• Health Net Federal Services – $49.3 million

Both contracts, if all options are exercised, will have values in the billions, according to the Defense Department, with Humana’s contract topping off at $40.5 billion and Health Net Federal Services’ at $17.7 billion.

Under the contracts, the contractors will assist the Military Health System in operating an integrated health care delivery system combining the resources of both the contractor and the military’s direct medical care system.

This effort will be made in order to provide health, medical and administrative support services to eligible beneficiaries, the Defense Department said in a release.

The newly formed East Region—and Humana’s scope of performance—contains:

• Alabama
• Arkansas
• Connecticut
• Delaware
• Florida
• Georgia
• Illinois
• Indiana
• Red Rock Arsenal, Iowa
• Kentucky
• Louisiana
• Maine
• Maryland
• Massachusetts
• Michigan
• Mississippi
• St. Louis, Missouri
• New Hampshire
• New Jersey
• New York
• North Carolina
• Ohio
• Oklahoma
• Pennsylvania
• Rhode Island
• South Carolina
• Tennessee
• Texas (excluding Western Texas)
• Vermont
• Virginia
• West Virginia
• Wisconsin

The West Region—and Health Net Federal Services scope of performance—contains:

• Alaska
• Arizona
• California
• Colorado
• Hawaii
• Idaho
• Iowa (minus the Red Rock Island Arsenal)
• Kansas
• Minnesota
• Missouri (except St. Louis)
• Montana
• Nebraska
• Nevada
• New Mexico
• North Dakota
• Oregon
• South Dakota
• Texas (Western Texas only)
• Utah
• Washington
• Wyoming

Four bidders bid on Humana’s East Region contract while three companies bid on Health Net’s West Region contract. Both contracts were contracted out by the Defense Health Agency’s Contracting Operations Division in Aurora, Colo.