One of Aetna’s largest contracts could be at risk, after a government agency recommended that the military work stay with a rival health insurer. WNPR’s Harriet Jones reports.
Hartford based Aetna could benefit from more than a billion dollars in revenue over five years if it completes the full term of the deal as the contractor for Tricare in the northern region. Tricare is the program that insures military personnel, their families and veterans.
When the announcement was made in July that Aetna had won the contract, the current provider, Health Net, lodged an appeal with the Government Accountability Office. On Thursday, the GAO issued its opinion, saying that it believes the contract should stay with Health Net. That recommendation isn’t binding on the Department of Defense, which must make the final determination – but government departments generally do follow the GAO’s advice.
Aetna issued a statement saying that it will continue to cooperate with the Pentagon as its considers the GAO’s recommendations. Aetna was due to have taken over the contract in April, administering health benefits to service members in 21 states.