Pentagon to seek proposals for $58B Tricare contracts

The U.S. Defense Department has issued its draft request for proposals to manage military healthcare contracts that are potentially worth $58 billion, according to Bloomberg Government.

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The draft RFPs, released Aug. 28, are for the Pentagon’s fifth iteration of its managed care program. Winners of the contracts will manage insurance for the U.S. military’s Tricare health system. Tricare runs health services for about 9 million military personnel, retirees and dependents.

Centene Corp. subsidiary Health Net Federal Services and Humana Military Healthcare Services run Tricare’s West and East contracts, respectively. Bloomberg Government said Centene has earned $7.5 billion on its Tricare West contract, which ends in December 2023. Humana has earned $15.9 billion on its East contract, which ends in April 2022.

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