The military health division of UnitedHealth Group Inc. has filed a suit in the U.S. Court of Federal Claims to protest a decision awarding a $23 billion military health care contract to a competitor.
UnitedHealth, Minnetonka, Minn. (NYSE:UNH), says other bidders have been promising to make unrealistic cuts in TRICARE provider reimbursement rates.
If carriers go through with the reimbursement cut guarantees, that could reduce TRICARE enrollees’ access to providers, UnitedHealth says.
“The Pentagon disregarded its own stated goals for this contract,” Lori McDougal, chief executive of the UnitedHealth military health division, says in a statement.
Humana has argued that it already has proven its ability to get good discounts from TRICARE network providers.
The TRICARE program manages health care for soldiers, veterans, and military dependents away from health care facilities for military personnel and veterans.
The South Region handles care for about 3 million people in Alabama, Arkansas, Florida, Georgia, part of Kentucky, Louisiana, Mississippi, Oklahoma, South Carolina, Tennessee and much of Texas.