UnitedHealth Unit Appeals Tricare Decision

Under the old contract, Humana was managing delivery of health benefits for 3 million active-duty military personnel, dependents and military retirees in the South region, which now includes Alabama, Arkansas, Florida, Georgia, part of Kentucky, Louisiana, Mississippi, Oklahoma, South Carolina, Tennessee and most of Texas.

The Defense Department awarded the new contract to UnitedHealthcare in July 2009, and Humana filed a protest.

Humana told the GAO that there were discrepancies between the award criteria and procedures described in the original request for proposals and the criteria used by the department in making the contractor selection.

In February, the Defense Department’s Tricare Management Activity unit changed course and awarded the contract to Humana.

One concern is that Humana’s bid depends on Humana paying doctors and hospitals rates far below the rates paid by Medicare, and those low rates could hurt the Tricare South Region system, UnitedHealthcare says.

More Tricare coverage from National Underwriter Life & Health:

• Tricare North Battle Continues
• Aetna Faces Tricare Challenge
• UnitedHealth Faces Tricare Battle
• Humana Files Protest
• Tricare Battle Heats Up