The contract, worth $65 billion, covers 4.5 million beneficiaries in 26 states.
Health Net plans to file a legal challenge to the decision, a spokesperson told Military.com.
The Defense Department said it would award the contract to TriWest, a group of nonprofit BCBS plans and university hospital systems, in December 2022. Health Net has held the contract since 2018.
Health Net filed its initial challenge to the Defense Department’s decision in February.