DOD Changes Tricare Insurance

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“The U.S. Department of Defense has awarded multiyear contracts worth $58 billion to Humana and Centene Corp. to manage Tricare, surprisingly booting incumbent health insurer UnitedHealthcare in the process…

“In 2014, the Defense Department and Defense Health Agency decided to alter the structure of the Tricare program, which provides health coverage for U.S. military members and their families. Instead of dividing Tricare into three regions (North, South and West), the government wanted to consolidate to two coverage areas (East and West).

“Humana, which had managed the South region, will now provide coverage for 6 million Tricare members in the new 32-state East region, essentially absorbing most of UnitedHealthcare’s members. Centene will gain the 21-state West region, which covers about 3.4 million people. Iowa, Missouri and Texas will include both companies.

“The contracts are expected to start April 2017, pending the appeals process.”  Source:  Modern Healthcare.


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