Humana (NYSE: HUM) and TriWest Healthcare Alliance have won $136 billion in contracts from the Defense Health Agency to provide managed care support services for service personnel, retirees and their families in the East and West regions in the U.S. as part of the Tricare program.
The T-5 managed care support contracts will take effect in 2024 to continue providing health care, claims processing, customer service and other administrative support to approximately 9.6 million Tricare beneficiaries, the Department of Defense said Thursday.
Humana Government Business received a $70.9 billion contract for the East Region that includes Washington, D.C., Alabama, Connecticut, Delaware and Florida.
TriWest secured a $65.1 billion T-5 MCS contract for the West Region, which includes Alaska, California and Colorado. Under the contract, the region will take in six states from the East covering about 1.5 million beneficiaries: Arkansas, Illinois, Louisiana, Oklahoma, Texas and Wisconsin.
Each contract will have a transition-in period of 12 months that will kick off on Feb. 1, eight option years and a transition-out period.
DHA received two offers for each of the T-5 contracts through a competitive solicitation process and will oversee the contracts through its managed care contracting division in Aurora, Colorado.
DOD said the contracts will require the vendors to help improve the integration between the T-5 private sector care and military medical treatment facilities and enhance interoperability with the MHS GENESIS system through Health Information Exchanges to speed up the transmission of information to health providers.