Tricare still sorting out regional contracts - Army News | News from Afghanistan & Iraq - Army Times

Tricare still sorting out regional contracts

Health Net Federal Services will continue as the health care contractor for the Tricare North region, defense officials announced.

The Tricare South contract decision process will take longer, as defense officials have gone back to the original bidders for more information. A separate agency-level protest involving the West Region, awarded to TriWest Healthcare Alliance Corp, is pending.

Tricare officials have assured beneficiaries that these contract disputes will not affect them, stressing that the current contracts are extended.

“Our top priority is our beneficiaries, and we want to reassure them that contract extensions are in place through March 31, 2011, and they will continue to receive high-quality care and customer service,” said Dr. Charles Rice, acting director of Tricare Management Activity, in an announcement about the contracts.

The contracts have been in limbo since last summer. Defense officials awarded the North Region contract to Aetna Government Health Plans, and the South Region contract to UnitedHealth Military & Veterans Services. Health Net and Humana Military Healthcare Services, current contractors for the North and South regions, filed protests.

The Government Accountability Office sustained the protests and kicked back the contracts to Tricare officials late last year for reevaluation.

Defense officials said they terminated the Aetna contract as of May 5 “for the convenience of the government.”

Aetna officials issued a press release saying they are “extremely disappointed with this decision.”

“During the procurement process, Aetna took a number of actions to ensure compliance with the Department of Defense requirements,” Susan Peters, president of Aetna Government Health Plans, said in the release. “Aetna is guided by a core set of values, central among which is integrity. We believe we acted appropriately throughout the procurement process and that no non-public information was ever used in preparing the bid.”

Aetna is “reviewing the basis for the decision and will seek to determine the best path forward,” according to the release.

The GAO decision found that a former high-level government employee who was hired by Aetna had access to non-public proprietary information. Health Net’s protest contended that the use of this government employee in preparing its proposal created an appearance of impropriety based on the unfair competitive advantage stemming from the individual’s access to that information.

The total potential value for the North region contract is about $17 billion, including the base period and five one-year options.

As for the Tricare South region, defense officials sent an amended Request for Proposals back to the original bidders, and their response is due back in mid-May.

Only one part of that contract is being reconsidered, said Tricare Management Activity spokesman Austin Camacho. The companies will provide more detail on how they will offer network discounts.

None of the new contracts, including the North region contract, will go into effect until all contract issues in all regions have been settled, he said.