DHA Taps Humana, Health Net for Tricare Managed Care Support Contracts

Humana (NYSE: HUM) and Health NetÂ (NYSE: HNT) have won separate contracts from the Defense Health Agency to deliver managed care support services to the Military Health System under the Tricare program.

Each of the cost-plus-fixed-fee contracts awarded to Humanaâ€™s government business and Health Netâ€™s federal services business contains a base period of nine months and five option years, the Defense Department said Thursday.

Humanaâ€™s government business received a contract with $67.4 million in base value and a potential ceiling value of $40.5 billion.

Humana will work to help MHS provide health and administrative services to Tricare beneficiaries in 33 states within the newly-created East Region that includes Washington D.C., Alabama, Connecticut and Delaware.

Health Netâ€™s federal business will provide managed care services to Tricare program beneficiaries in 21 West Region states that include Alaska, California and Hawaii under a contract that has a base value of $49.3 million and could reach $17.7 billion in total value if all options are exercised.

Centene (NYSE: CNC) acquired Health Net in October 2015 for $6.3 billion inÂ cash-and-stock.

DHA’sÂ contracting operations division awarded the contracts through a competitive procurement process with four bids submitted for the East region contract and three offers in pursuit of the West region, according to DoD.

DoDâ€™s Tricare program provides health plans, prescriptions and other medicalÂ services to approximately $9.4 million uniformed personnel and their families worldwide and is managed through separate regions that include the North, West, South and East regionsÂ in the U.S. as well asÂ overseas.

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