Tricare contract upheaval won’t disrupt coverage - Getting out, military health issues - Navy Times

Tricare contract upheaval won’t disrupt coverage

Two of the three regional Tricare contracts remain in limbo, but beneficiaries should feel no effects, according to defense officials and contractors.

There is no timeline yet for the Pentagon to make a decision on the two contract disputes, Tricare Management Activity spokesman Austin Camacho said.

In the interim, defense officials have notified the two contractors that it intends to temporarily extend the old contracts. If the two six-month option periods are exercised, the contracts will be carried through March 31, 2011.

“At some point, we will determine if a further extension of the contracts is warranted, but that will depend on the outcome of the protests,” Camacho said.

The Government Accountability Office sustained protests by Tricare South Region contractor Humana Military Healthcare Services on Oct. 28 and North Region contractor Health Net Federal Services on Nov. 4.

TMA had awarded the new contracts in July to Aetna Government Health Plans of Hartford, Conn., for the North Region and to United Military & Veterans Services of Minnetonka, Minn., for the South Region.

As required by law, defense officials have notified GAO that they failed to meet the 60-day deadline for corrective action.

Barbara Cohoon, deputy director of government relations for the National Military Family Association, noted that the Pentagon factored the new contracts, which were expected to provide cost savings, into its budget plans and now will have to find extra money to fund the old contracts.

All Tricare contractors roll out new initiatives on their own on top of the requirements of their contracts, but Cohoon said that may not be in the best business interests of the two in limbo right now.

Examples of such initiatives are Humana’s telephonic education and coaching services for victims of chronic obstructive pulmonary disease; Triwest’s Healing Heroes Portal; and Health Net’s kit to help special-needs families make use of the Extended Care Health Option program.