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: Quote) 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
American Airlines Group said pilots at its subsidiaries American Airlines and US Airways, represented by Allied Pilots Association, have approved a new five-year contract which provides immediate pay raises of 23 percent and subsequent annual raises of three percent for the next five years. LEGO Group, TT Games and Warner Bros. Interactive Entertainment have announced their 2015 slate of video games, including LEGO Jurassic World, LEGO Marvel's Avengers, and as well as new hand-held and mobile titles. Social-networking giant Facebook, Inc. is said to be testing their new 'Place Tips' feature for iOS users that will rival a similar service being provided by Yelp or Foursquare. The feature will provide the user relevant content about their location as long as they are there through pop ups on their news feed page of Facebook.
comments powered by Disqus
RELATED NEWS
Trade UNH now with 
Follow RTT