After protesting the U.S. Department of Defense’s decision to Award Aetna with the lucrative TRICARE health care contract, Health Net announced today that the Department of Defense now intends on awarding it to Health Net.
Health Net has held the TRICARE North Region contract for 22 years, and the loss of the contract last July resulted in downgraded stock and talk of layoffs at the company’s TRICARE office at its Rancho Cordova location. A protest to the Government Accountability Office filed soon after the award announcement was sustained in November, but no guarantees were made that the accepted protest would result in Health Net maintaining the contract.
“Health Net is honored to continue to serve our active duty, National Guard and Reserve members, and military retirees and their families in the North Region,” said Jay Gellert, president and chief executive officer of Health Net, Inc. “I also want to take this opportunity to thank all of our associates who have continued to provide support for our TRICARE beneficiaries during the protest period.”
Health Net’s federal services program serves more than 2.9 million TRICARE-eligible beneficiaries serving in the armed forces. Steven Tough, the president of Health Net’s government services division, said there will be little impact on beneficiaries as the company transitions from the current contract to the new one.
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