Managers of the Tricare military health benefits program have awarded the administration contract for the program’s East region to a unit of Humana, and the contract for the program’s West region to a unit of Centene Corp.
Tricare is a federal program that provides health and dental benefits for military personnel, reservists, the dependents of military personnel, and military retirees.
Each regional contract starts with a nine-month coverage base period and includes up to five one-year contract extension options.
The East region contract that Humana won has a potential value of $40.5 billion, according to the Defense Health Agency, an arm of the U.S. Department of Defense.
The West Region contract could be worth $17.7 billion.
Centene, the winner of the West region contract, would handle the contract through its Health Net Federal Services unit. Centene acquired Health Net, the federal services unit’s parent, in March.
The two regional programs could provide health coverage for a total of about 9.2 million people, according to a program bid solicitation package.