A health insurer has succeeded at slowing U.S. Department of Defense efforts to shift a giant health plan administration contract to a competitor.
Humana Military Healthcare Services, an arm of Humana Inc., Louisville, Ky., (NYSE:HUM) has persuaded the U.S. Government Accountability Office to have the U.S. Department of Defense take another look at a contracting decision.
The department recently awarded the South Region TriCare program contract to the UnitedHealth Military & Veterans Services unit at UnitedHealth Group Inc., Minnetonka, Minn. (NYSE:UNH)
TriCare is a program that manages health benefits for military personnel, dependents and retirees who get care away from military and Veterans Department facilities.
The new contract could last about 6 years. It has a total potential estimated value of about $22 billion, according to Humana.