UnitedHealth Group Inc., which has major operations in Hartford, lost a protest of an award of a military contract to rival health insurer Humana Inc, which had taken the business away from the company earlier this year, Reuters reports.
The Tricare South region contract involves health benefits for 3 million active and retired military members and their families, according to UnitedHealth. It is worth $23.5 billion over five years plus a transition period.
Humana said the contract is set to begin in April 2012.
UnitedHealth won the contract in July 2009, but Humana protested soon afterward to the Government Accountability Office, claiming discrepancies between the award criteria in the bid documents and those actually used to make selections.
In February, the Department of Defense reversed its decision and awarded the contract to Humana.
In lodging its protest, UnitedHealth said Humana offered steep discounts that would pay doctors and hospitals below rates paid in the Medicare system. Those discounted payments ultimately could force doctors to leave the military healthcare network, UnitedHealth claimed.
UnitedHealth said it may pursue legal actions as a result of the decision.
