Tricare Drops UnitedHealthcare From New Contracts

Tricare Drops UnitedHealthcare From New Contracts

The U.S. Defense Department has awarded multiyear contracts worth $58 billion to Humana and Centene Corp. to manage Tricare, surprisingly booting incumbent health insurer UnitedHealthcare in the process.

Humana's five-year deal, which consists of five one-year options, is estimated to cost federal taxpayers $40.5 billion. Centene and its newly acquired Health Net will receive $17.7 billion over five one-year contract periods.

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