The U.S. Department of Defense posted on its contract website today that Humana Inc. is keeping the TRICARE military business that the DoD tried to cancel two years ago.
The contract is potentially worth $23.5 billion if Humana and the DoD exercise five, 1-year options.
In 2009, Humana lost a bid to continue the TRICARE managed-care contract for military personnel, valued at as much as $21.8 billion for the five-year time frame.
Humana officials filed a protest with the U.S. Government Accountability Office, which upheld their protest.
Now, it looks like Humana keeps the business for a while longer:
Here’s the DoD release in its entirety (and full governmental jargon):
TRICARE MANAGEMENT ACTIVITY
Humana Military Healthcare Services, Inc., Louisville, Ky., is being awarded a cost-plus-fixed-fee contract to provide managed care support to the Department of Defense TRICARE program. The instant award will comprise of the transition-in base period $4,931,404. The total potential contract value, including the approximate 10-month base period and five one-year option periods for health care delivery, plus a transition-out period, is estimated at $23,526,516,165. The South Region contractor will assist the Military Health System in operating an integrated health care delivery system combining the resources of the contractor and the military’s direct medical care system to provide healthcare, plus medical and administrative support services to eligible beneficiaries in the South Region. The South Region includes the states of Alabama, Arkansas, Florida, Georgia, Kentucky (Fort Campbell area only), Louisiana, Mississippi, Oklahoma, South Carolina, Tennessee, and Texas (excluding areas of western Texas). The work to be performed includes management of provider networks and referrals, medical management, enrollment, claims processing, customer service and access to data, among other requirements, while providing beneficiary satisfaction at the highest level possible through the delivery of world-class health care. The South Region contractor will also be responsible for administering and complying with all Continued Health Care Benefit Program requirements in all geographic areas. The majority of the work to be performed will be in Louisville, K. This contract was competitively procured via the TRICARE Management Activity e-solicitation website with three initial offers received. The TRICARE Management Activity, Aurora, Colo., is the contracting activity (HT9402-11-C-0003).