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GAO upholds TRICARE contract awards

The Government Accountability Office announced the results of its review of the protests filed against the TRICARE 2017 Managed Care Support Contracts awards November 11; upholding the Defense Health Agency contract awards to Humana Government Business Inc., to provide managed care support to the East Region, and Health Net Federal Services LLC in the West Region.

"I am pleased our new TRICARE contracts are moving forward.  The new contracts demonstrate our continuing commitment to serving the health care needs of our country’s military service members, retirees and their families.” said Dr. Karen S. Guice, acting assistant secretary of Defense for Health Affairs.

In the newly created East Region, the total potential contract value, including all option periods, is estimated at $40.5 billion.  For the West Region, the total potential contract value, including all option periods, is approximately $17.7 billion.  Both contracts are cost-plus-fixed-fee contracts with a nine-month base period (transition-in) and five one-year option periods for health care delivery, plus a transition-out period.

“In designing the T2017 contracts, we retained the best parts of prior contracts and incorporated new best practices to improve access, quality and safety, “said Dr. Karen S. Guice, acting assistant secretary of Defense for Health Affairs.  “We’ve added new controls to provide a more seamless transition to the new contracts.  We’ll work very closely with our new partners to test their systems and ensure a smooth handoff of care for all of our beneficiaries.”