TRICARE will not be transitioning to new regional managed care subcontractors on April 1 as planned, due to a successful protest lodged by HealthNet. Instead, HealthNet will remain the TRICARE managed care contractor for the North Region, and Humana will continue to serve the TRICARE South region.

In July 2009, TRICARE announced that Aetna was taking over TRICARE North Region and UnitedHealthcare was replacing Humana in the South effective April 1, 2010.

HealthNet filed an appeal, and upon review, the U.S. Government Accountability Office said it found the appearance of an unfair advantage in the pursuit of the TRICARE contracts. It recommended a re-evaluation of the bids.

TRICARE is determining its next steps, including whether to rebid the contracts for its regions. In any event, TRICARE will need to provide 10 months’ notice of any change in managed care providers. As it now stands, Humana will cover the South Region,...

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