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Humana gets one-year Tricare contract extension

NEWS IN BRIEF — Posted Oct. 18, 2010

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Humana will continue to administer Tricare benefits to military members and their families in the South as federal authorities decide whether Humana or UnitedHealth Group will have the next five-year contract for the region.

In a filing with the Securities and Exchange Commission, Humana said the Dept. of Defense Tricare Management Activity notified the company that it intends to extend its current contract through March 31, 2012.

The Defense Dept. originally was to begin a new, five-year contract period in 2010 for all three Tricare regions, but two of the contract awards were challenged. Health Net won its appeal and will continue to administer Tricare in the North region.

Humana challenged the award of the South region contract to UnitedHealth Group, and the Government Accountability Office upheld the appeal. The Defense Dept., however, still must decide whether to re-award the contract in response.

Note: This item originally appeared at http://www.ama-assn.org/amednews/2010/10/18/bibf1018.htm.

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