UnitedHealthcare (NYSE: UNH) has filed a protest with the Government Accountability Office to dispute the Defense Health Agency’s award of Tricare services contracts to Humana (NYSE: HUM) and Health Net, Military Times reported Tuesday.
DHA selected Humana and Health Net in July for separate contracts to provide health services to Tricare program beneficiaries in the agency’s East and West regions.
Each contract has a nine-month base period and five option years with a potential ceiling value of $40.5 billion for Humana’s East region contract and $17.7 billion for Health Net’s West region award.
UnitedHealthcare submitted bids for both regions, according to the report by Patricia Kime.
UnitedHealthcare won the Tricare West region management contract in 2012 after it filed a protest, according to the report.
DHA consolidated its North and South regions into an East region for the new round of contracts, while Health Net currently is the North region’s manager and Humana for the South.