The Pentagon exercised a $7.3 billion option to extend Humana Inc.’s part in managing health care for millions of military personnel and their families in the eastern United States, the Department of War announced Wednesday.
The one-year extension, which runs from Jan. 1, 2026, to Dec. 31, 2026, highlights the military’s use of private contractors to provide medical services amid growing demand on the TRICARE health care program, which is managed by the Defense Health Agency (DHA).
“The contractor will assist DHA in operating an integrated health care delivery system combining the resources of the contractor and the military’s direct medical care system to provide health, medical, and administrative support services to eligible members of the uniformed services, retirees, and their eligible family members,” reads the contract description on the U.S. Department of War website.
Humana, headquartered in Louisville, Kentucky, will receive $7,342,637,605 for its services as per the contract. It has built much of its business around government-sponsored programs.
The contract covers the TRICARE East Region, including 26 states from Maine to Florida and west to Missouri, as well as the District of Columbia.
The Department of War offers health care services to more than 9 million eligible beneficiaries through the TRICARE program.
The Department of War has made the announcement amid fiscal pressures, as rising health care costs are eating up a significant portion of its budget. The FY 2025 defense health program request exceeded $50 billion.
Humana has been a key player in the TRICARE program since it first started overseeing the East Region in the 2022 T-5 awards, part of a $136 billion overhaul divided between Humana and TriWest Healthcare Alliance for the West Region. The original contract encompassed a transition-in period and as many as eight annual options, as well as a transition-out phase.
