Government upholds Humana Tricare contract award
Health insurer Humana Inc. said Wednesday the Government Accountability Office upheld its contract to provide coverage for active duty and retired military members and their families in several Southern states.
The Louisville, Ky., company had said in late February it was awarded the contract, which provides coverage for about 3 million people through the government's Tricare program. The contract starts in 2012 and was awarded two years ago to competitor UnitedHealth Group Inc., but Humana protested that decision.
UnitedHealth then protested the government's decision to award the contract to Humana. Humana said Wednesday the government rejected that protest.
Humana has the current contract. The new contract gives it five renewable option periods of a year each starting in April 2012.
Humana is the fifth-largest health insurer based on enrollment, and military coverage is a key part of its business. Company shares climbed 31 cents to $80.02 in morning trading while UnitedHealth shares lost 10 cents to $49.50. The broader trading indexes fell slightly.