3 companies protest $58M DoD TRICARE contracts, including one winner

Rancho Cordova, Calif.-based Health Net Federal Services, who won one of the Department of Defense's $58 million TRICARE contracts, joined two other insurers in a complaint to protest the decision, according to Federal News Radio.

The DoD announced in July that Health Net was chosen to manage TRICARE's western region after evaluating bids from three companies, including Minnetonka, Minn.-based UnitedHealthcare and Indianapolis-based Wellpoint.

In its filing with the Government Accountability Office, Health Net argued that it should have been awarded the eastern region instead of the west, according to the report. Louisville, Ky.-based Humana was selected to manage the east with a contract valued at about $40.5 billion.

A Health Net spokesperson declined to comment on the issue.

According to the report, the filing has to do with the fact that the maximum value for the eastern region is significantly larger than the western region, roughly $41 billion to $18 billion over six years beginning in 2017.

UnitedHealth, who currently provides insurance to the western region, filed two separate protests for the eastern and western regions. The company did not win a bid for either of the two contracts beginning in April 2017.

WellPoint, a division of Indianapolis-based Anthem, also filed a protest last week on similar grounds regarding the east region contract, which was awarded to Louisville, Ky.-based Humana.

Humana, for its part, filed a brief with the GAO protecting its new contract last week.

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