logo
Share SHARE
FONT-SIZE Plus   Neg

UnitedHealth Wins $20.46 Bln DoD Contract

U.S. Department of Defense, or DoD has awarded UnitedHealth Group Inc. (UNH) a contract, worth more than $20 billion, to provide managed care support to DoD's Tricare program, which was earlier held by TriWest Healthcare Alliance. The contract includes about 10-month base period and five one-year option periods for health care delivery, plus a transition-out period.

UnitedHealth is replacing the TriWest Healthcare Alliance, which had managed the 21-state TRICARE West Region for the Department of Defense for many years. The contract had been held since 2009 by the TriWest Alliance, which comprised nonprofit insurers and university hospital systems.

The West 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, DoD stated.

The TRICARE West Region includes Alaska, Arizona, California, Colorado, Hawaii, Idaho, Iowa, Kansas, Minnesota, Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oregon, South Dakota, Utah, western Texas, Washington and Wyoming.

David McIntyre Jr., TriWest's president and chief executive, said the health-care provider was "disappointed that the Department of Defense chose to reverse their decision."

Consistent with federal regulations, TriWest expects to learn more about the government's decision in an upcoming debriefing. At this time, we will seek to ascertain whether it was appropriate and fair, and to determine our future course of action.

UnitedHealth Shares closed Friday at $55.59 on the New York Stock Exchange, were 3.02 percent higher at $57.27 in after hours trading.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Shares of thyssenKrupp AG were gaining around 2 percent in the morning trading in Germany after the steel giant Thursday said it expects clearly positive net income and significantly higher adjusted EBIT, a key earnings metric, in fiscal 2018. This was after reporting higher adjusted EBIT, sales and order intake in its fiscal 2017, despite a net loss due to charges. Senator Lisa Murkowski, R-Alaska, has expressed support for repealing Obamacare's individual mandate, a key provision Senate Republicans are hoping to use to offset the cost of their tax reform bill. The Congressional Budget Office estimates repealing the requirement that nearly all Americans purchase... Automotive startup Divergent 3D said that a Chinese-led investment syndicate has agreed to commit up to $107 million in financing through a new investment round. Hong Kong-based investment holding company, O Luxe Holdings Limited, led the investment group, which includes Horizons Ventures, Shanghai Alliance Investment Limited and Altran Technologies.
comments powered by Disqus
Follow RTT