Health Insurance Forum

Aetna disqualified from multi-billion dollar TRICARE military contract

by mahir on 07/05/10 at 10:41 am

Saying it is “extremely upset” with the decision, Aetna plans to decide why it was banned from winning a multi-billion dollar contract to grant health care to members of the military. On May 5, the U.S. Department of Defense announced it was awarding the agreement for its TRICARE North Region to Health Net Federal Services, a subsidiary of Sacramento, Calif.-based Health Net. Health Net is at present the managed care contractor for the TRICARE North Region and will now add 2.9 million TRICARE-eligible beneficiaries in all or part of 23 states.
The total possible contract value, including the base period and five one-year option periods for health care delivery, is anticipated at approximately $17 billion by TRICARE Management Activity (TMA), which oversees the military health reporting. “Health Net is privileged to continue to serve our active duty, National Guard and Reserve members, and military retirees and their families in the North Region,” said Jay Gellert, president and chief executive officer of Health Net, in a statement.
TRICARE is the health care program for active duty members, retired service members, National Guard/Reserve members and their families as well as others allowed to medical care through the Defense Department. Coverage is split into six national and international regions.
In its statement on the new contracts, TMA said in July 2009, it awarded a contract for its North Region to Atena  individual health insurance plans , a move afterward appealed by Health Net. Media reports indicate Health Net’s protest to the award was based on Aetna’s hiring of a former TRICARE executive to support with its proposal