Humana Military Wins Department of Defense TRICARE East Region Contract

Rhea-AI Summary

Humana Military has been awarded a managed care support contract for the TRICARE East Region by the Defense Health Agency. This contract marks the sixth secured since 1996 and covers approximately 4.6 million beneficiaries across 24 states and Washington, D.C. The contract has one base year with eight annual options, potentially lasting nine years, the longest duration in TRICARE history. Humana Military aims to enhance care quality for military members and families, although finalization depends on the resolution of any protests from other bidders.

Positive

• Awarded a contract for TRICARE East Region, covering 4.6 million beneficiaries.
• Longest TRICARE contract duration of nine years, enhancing stability.
• Demonstrates sustained partnership with the Department of Defense since 1996.

Negative

• Final contract award is subject to protests from unsuccessful bidders.

This is the sixth TRICARE contract Humana Military has secured since 1996

LOUISVILLE, Ky.--(BUSINESS WIRE)-- Humana Military has been awarded the next managed care support contract for the TRICARE East Region by the Defense Health Agency of the U.S. Department of Defense (DoD). TRICARE is the military health care program that provides benefits to military service members, retirees and their families.

“We are grateful to the DoD for continuing to trust Humana Military with the care of TRICARE East Region beneficiaries,” said Karen Moran, Senior Vice President and President of Humana Military. “We look forward to building on our 26-year history with the DoD and TRICARE as we facilitate the delivery of the high-quality health care benefits that active military members, retirees and their families so richly deserve.”

Under the terms of the award, Humana Military’s service area would cover approximately 4.6 million beneficiaries in a region consisting of 24 states and Washington, D.C. The length of the contract is one base year with eight annual option periods, which, if all options are exercised, would result in a total contract length of nine years. This is the longest duration of a TRICARE contract since the program’s inception in 1995.

“The beneficiaries we serve have come to expect compassionate care from Humana Military, and we are honored to be selected to continue this care for the next nine years,” said Sue Schick, Segment President, Group and Military Business. “This is an incredible opportunity to take innovative, patient-focused care to the next level for beneficiaries and the Military Health System as a whole.”

Final disposition of the contract award is, however, subject to the resolution of any protests that may be filed by unsuccessful bidders.

Humana Military was awarded its current TRICARE East contract in 2016. This newest contract is the sixth to be administered by Humana Military, which has partnered with the DoD to care for TRICARE beneficiaries since 1996.

About Humana Military

Humana Military, a wholly owned subsidiary of Humana Inc. (NYSE: HUM), partners with the Department of Defense and the Defense Health Agency to administer the TRICARE health program for six million U.S. Military active duty, retirees and family member beneficiaries in the East Region. For the last 25 years, Humana Military has strived to create better health outcomes and simplified experiences for millions of beneficiaries across the United States through TRICARE and other military health care programs. For more information, please visit www.humanamilitary.com.

About Humana

Humana Inc. (NYSE: HUM) is committed to helping our millions of medical and specialty members achieve their best health. Our successful history in care delivery and health plan administration is helping us create a new kind of integrated care with the power to improve health and well-being and lower costs. Our efforts are leading to a better quality of life for people with Medicare, families, individuals, military service personnel, and communities at large.

To accomplish that, we support physicians and other health care professionals as they work to deliver the right care in the right place for their patients, our members. Our range of clinical capabilities, resources and tools – such as in-home care, behavioral health, pharmacy services, data analytics and wellness solutions – combine to produce a simplified experience that makes health care easier to navigate and more effective.

More information regarding Humana is available to investors via the Investor Relations page of the company’s web site at www.humana.com, including copies of:

• Annual reports to stockholders
• Securities and Exchange Commission filings
• Most recent investor conference presentations
• Quarterly earnings news releases and conference calls
• Calendar of events
• Corporate Governance information

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20221222005560/en/

Nan Frient

Corporate Communications

Humana Military

502-438-6814

nfrient@humana.com

Lisa Stoner

Investor Relations

Humana Inc.

502-580-2652

lstamper@humana.com

Source: Humana Inc.

FAQ

What is the TRICARE East Region contract awarded to Humana Military?

Humana Military secured a managed care support contract for the TRICARE East Region, covering approximately 4.6 million beneficiaries.

How long is the TRICARE East Region contract with Humana Military?

The contract has one base year with eight annual options, totaling up to nine years if all options are exercised.

What does the TRICARE contract mean for Humana's future?

The contract solidifies Humana Military's role in providing health care to military service members and their families for an extended period.

How many beneficiaries are covered under the new TRICARE contract?

The contract covers approximately 4.6 million beneficiaries in the TRICARE East Region.

What challenges could affect Humana Military's TRICARE contract?

The final award is contingent upon the resolution of any potential protests from unsuccessful bidders.