TRICARE Finalizes North Region Health Care Support Contract

FALLS CHURCH, VA – TRICARE Management Activity (TMA) announced on Thursday that it has awarded a contract to Health Net Federal Services, LLC, Rancho Cordova, CA., as the TRICARE Managed Care Support (MCS) contractor for the TRICARE North Region. The announcement follows the May 5, 2010 announcement of TMA’s intent to award.

The total potential contract value including a 10-month transition period and five one-year option periods for health care delivery, plus a transition-out period, is $17,218,484,626. Health Net is the current contractor for the TRICARE North Region.

Transition to the three new regional contracts in the United States, known as “T-3,” was initially slated for completion April 1, 2010. Protests filed with TMA and the Government Accountability Office (GAO) put transition activities on hold in all three regions. In late October and early November of 2009, the GAO sustained the protests by Health Net and the current South Region contractor, Humana Military Healthcare Services, and recommended reevaluation of proposals for both the North and South Region.

TMA also issued an amended Request for Proposals (RFP) for the TRICARE South Region on May 5, 2010. In keeping with GAO recommendations, TMA is only requesting new information and proposal updates related to the offerors’ network discounts. The original bidders will all have the opportunity to respond.

An agency-level protest regarding the West Region award to TriWest Healthcare Alliance Corp. is still pending.

TMA administers the health care plan for more that 9.6 million members of the uniformed services, retirees and their families worldwide. Regional support contractors provide health, medical and administrative support services while ensuring beneficiary satisfaction at the highest level possible through the delivery of outstanding health care.

For additional information and updates on the T-3 contracts go to www.tricare.mil/t3contracts.

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