{"id":66113,"date":"2022-12-23T16:13:08","date_gmt":"2022-12-23T16:13:08","guid":{"rendered":"https:\/\/one.sightlinemg.com\/marinecorpstimes\/uncategorized\/2022\/12\/23\/dod-awards-new-tricare-contracts-worth-136b-to-start-in-2024\/"},"modified":"2026-08-20T14:10:37","modified_gmt":"2026-08-20T14:10:37","slug":"dod-awards-new-tricare-contracts-worth-136b-to-start-in-2024","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/marinecorpstimes\/pay-benefits\/2022\/12\/23\/dod-awards-new-tricare-contracts-worth-136b-to-start-in-2024\/","title":{"rendered":"Pentagon awards Tricare contracts worth $136 billion, to start in 2024"},"content":{"rendered":"\n

Defense officials announced Thursday they\u2019ve awarded the next round of Tricare contracts to Humana Government Business of Louisville, Kentucky, and TriWest Healthcare Alliance of Phoenix, Arizona.<\/p>\n\n\n\n

The new contracts hold the promise of greater provider network flexibility, improved choices and other benefits for Tricare beneficiaries, according to defense officials.<\/p>\n\n\n\n

Humana Government Business will manage the East Region, which will cover 24 states plus Washington, D.C., and TriWest Healthcare Alliance will manage the 26-state West Region. Six states that are currently in the East Region will transfer to the West Region \u2014 Arkansas, Illinois, Louisiana, Oklahoma, Texas and Wisconsin. This shift provides a more equitable balance of beneficiaries, officials said. These states include about 1.5 million beneficiaries; all told there are about 9.6 million Tricare beneficiaries, to include members of the uniformed services, their families, retirees and their families.<\/p>\n\n\n\n

Humana\u2019s contract is worth a potential $70.8 billion, while TriWest\u2019s is worth a potential $65.1 billion. The last time the Tricare contracts were awarded, in 2016, the two regions\u2019 potential worth was a combined $58 billion over about six years.<\/p>\n\n\n\n

The contracts include a one-year base transition period beginning Feb. 1, eight one-year option periods, plus a transition out period.<\/p>\n\n\n\n

The current contracts remain in place until 2024, when the new contracts take effect. The new contracts, dubbed T-5 contracts, \u201cdo not change the Tricare benefit and offer all the same Tricare options,\u201d Defense Health Agency officials said in their announcement.<\/p>\n\n\n\n

Defense leadership and the current contractors \u201care dedicated to managing a smooth transition to the new managed care support contractors, with minimum disruption to our beneficiaries,\u201d said Lt. Gen. Ronald Place, director of the Defense Health Agency. There will be a 12-month transition period. The contractor for the East Region is currently Humana Military; for the West Region it\u2019s Health Net.<\/p>\n\n\n\n

Here\u2019s what the new contracts will hold for beneficiaries, according to DoD:<\/p>\n\n\n\n

\u2666 Greater provider network flexibility.<\/p>\n\n\n\n

\u2666 Improved beneficiary choice.<\/p>\n\n\n\n

\u2666 Enhanced telehealth appointments.<\/p>\n\n\n\n

\u2666 Beneficiaries will be able to transfer specialty care referrals when they move, whether they\u2019re moving to a new duty station with the current region or to the other region.<\/p>\n\n\n\n

\u2666 Regions will be required to reduce their average speed to answer calls to 20 seconds; to enhance call center resolutions and callbacks; and to resolve 85% of issues on the first call.<\/p>\n\n\n\t