The Defense Health Agency has awardedÂ Humana (NYSE: HUM) a one-year, $3.80 billion “bridge” contractÂ to extend the company’sÂ healthcare delivery servicesÂ under the Tricare Health Benefits program.
Humana’s government businessÂ unit will continue to support health benefits management functions andÂ provideÂ managed careÂ services to nearlyÂ 3 million Tricare program beneficiaries in the southern U.S., the Defense Department said Thursday.
The companyÂ helps the Military Health SystemÂ adjucateÂ more than 240 million medical claims eachÂ year with automated claims processing technology, according to DoD.
DoD noted theÂ contract extensionÂ will runÂ throughÂ March 31, 2018, and seeks to ensure uninterrupted care delivery throughout the South region until DHA implements the follow-on T-2017 TricareÂ managed support contracts.
Last year, DHA awardedÂ a pair of contracts worth up to $58 billion forÂ Humana andÂ Health NetÂ (NYSE: HNT)Â to respectively provide Tricare support services in the East and West regions.
Health Net,Â UnitedHealth Military and Veterans and WellpointÂ subsequently challenged the Tricare contract awards atÂ the Government Accountability OfficeÂ andÂ all three health insurers’ protests were denied by GAO.