TriWest gets military healthcare contract
By William Cole
Advertiser Military Writer
TriWest Healthcare Alliance has won a $10 billion federal contract to manage the healthcare of military retirees and family members of some active duty personnel in Hawai'i and 20 other states in the new Tricare West region.
The Hawai'i Medical Services Association, the state's largest health insurer, is one of TriWest's new owners, and will act as a subcontractor to help establish a health-care provider network in Hawai'i.
The Defense Department contract awarded yesterday is part of an effort to consolidate 12 regions and multiple contracts into three contracts covering the West, North and South regions of the United States that will provide services for 8.7 million uniformed service beneficiaries and support to military hospitals.
Phoenix-based TriWest is managing the military care in a 16-state Central region. Five states, including Hawai'i, are being added.
"Our new contractors will be strategic partners in support of medical readiness and their added value includes optimizing care in our medical facilities, ensuring access to the highest quality civilian providers and offering preventive and outreach strategies for our beneficiaries," said Dr. William Winkenwerder Jr., assistant secretary of defense for health affairs.
Health Net Federal Services, which is now overseeing the military healthcare in Hawai'i, received a contract for the new North region.
TriWest spokesman Jim Kassebaum said there will not be immediate changes in Hawai'i. The turnover will begin on June 1.
"So it's quite a ways off. There's a lot of transition, hand offs that have to occur between us and the outgoing contractor," Kassebaum said. "So for all intents and purposes, beneficiaries (in Hawai'i) won't see any changes for a good period of time."
In Hawai'i, TriWest will employ as many as 50 individuals at various Tricare service centers to serve the 145,836 Tricare-eligible beneficiaries statewide, the company said.
Reach William Cole at 525-5459 or wcole@honoluluadvertiser.com.
