GAO Affirms TRICARE West Contract Award to UnitedHealthcare

Transition to UnitedHealth Military & Veterans Services for 2.9 million active duty and retired military service members and their families will move forward

MINNETONKA, Minn.--(BUSINESS WIRE)--The Government Accountability Office today affirmed the Defense Department’s award of the TRICARE Managed Care Support contract for the West region to UnitedHealthcare, a UnitedHealth Group (NYSE: UNH) company.

“We are committed to working with the Department of Defense to ensure beneficiaries have access to cost-effective, quality and innovative care.”

UnitedHealthcare and the Defense Department will move forward on transitioning TRICARE West beneficiaries to UnitedHealth Military & Veterans Services as the region’s Managed Care Support contractor. The transition is scheduled to occur in April 2013.

TRICARE West serves nearly 2.9 million active duty and retired military service members and their families in Alaska, Arizona, California, Colorado, Hawaii, Idaho, Iowa (excluding Rock Island Arsenal area), Kansas, Minnesota, Missouri (excluding the St. Louis area), Montana, Nebraska, Nevada, New Mexico, North Dakota, Oregon, South Dakota, portions of Texas (including El Paso), Utah, Washington and Wyoming.

“UnitedHealth Military & Veterans Services is honored to be able to put our expertise and experience to work on behalf of TRICARE West beneficiaries, and we look forward to working with the Defense Department and the incumbent contractor to ensure a smooth transition for service members, retirees and their families,” said Lori C. McDougal, CEO of UnitedHealth Military & Veterans Services. “We are committed to working with the Department of Defense to ensure beneficiaries have access to cost-effective, quality and innovative care.”

UnitedHealth Military & Veterans Services will provide contract and claims processing, as well as 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.

In awarding the TRICARE West contract to UnitedHealthcare, the Defense Department chose a private-sector partner who can take a more comprehensive approach to the TRICARE program to get the best value for beneficiaries – one that enhances the quality of health care for beneficiaries, and in doing so improves medical outcomes while controlling costs.

UnitedHealthcare is the trusted health care partner of more than 35 million Americans, with a track record of quality service:

• No. 1 in claims processing accuracy: According to the American Medical Association’s ranking of the seven leading commercial health insurers in its 2012 Report Card
• Most Admired Health Insurer: According to Fortune Magazine, for the last two years in a row

About UnitedHealthcare
UnitedHealthcare is dedicated to helping people nationwide live healthier lives by simplifying the health care experience, meeting consumer health and wellness needs, and sustaining trusted relationships with care providers. The company offers the full spectrum of health benefit programs for individuals, employers and Medicare and Medicaid beneficiaries, and contracts directly with more than 650,000 physicians and care professionals and 5,000 hospitals nationwide. UnitedHealthcare serves more than 38 million people and is one of the businesses of UnitedHealth Group (NYSE: UNH), a diversified Fortune 50 health and well-being company.