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UnitedHealth In Department of Defense Tricare Contract-South Region

The $21.8 billion contract includes a transition period and five one-year option periods for health care operations

UnitedHealth Group (UNH) has revealed that its UnitedHealth Military & Veterans Services (UMVS) has been awarded the TRICARE Managed Care Support South Region contract by the US Department of Defense. The deal is to offer health care services for active duty and retired military service members and their families.

As per the contract, UMVS will be the Managed Care Support contractor serving around three million TRICARE beneficiaries in Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, Oklahoma, South Carolina, Tennessee, and portions of Texas. Under this, UMVS will offer medical and referral management, care provider networks, customer services and claims processing. It would also provide management support including cost trend risk management, fraud and abuse detection, and quality management services.

The contract includes a transition period and five one-year option periods for health care operations. The first year of operations is expected to begin April, 2010.

The contract has a gross value of $21.8 billion over the term of the contract, comprising more than $20.3 billion in government-forecasted health care costs and $1.5 billion for management support and services.