logo
Plus   Neg
Share
Email

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 RTTNews Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Walmart is ditching its dress code policy and is testing a new dress code that will allows "associates" to wear blue denim and shirts of any solid color. The updated dress coded guidelines now allow employees to wear blue "jeggings" and blue jeans and shirts of any solid color, according to a Walmart... Canadian investment firm Fairfax Financial Holdings Ltd. has submitted a "stalking horse" bid worth C$300 million, or $237 million, for the Canadian unit of Toys "R" Us, according to court documents. A stalking horse bid is an initial bid on the assets of a bankrupt company. The bankrupt company will choose an entity from a pool of bidders who will make the first bid on its assets. The car rental market in the U.S. is consolidating as large car rental companies are buying smaller, local companies to expand their portfolio of premium and value brands. The key players in the U.S. market include Enterprise Holdings, Hertz Global Holding and Avis Budget Group. Let's take a look at some of the best and worst car rental companies in the U.S.
Follow RTT