UnitedHealth wins protest of $17B Pentagon contract

UnitedHealth Group has persuaded the Pentagon to reconsider the awarding of a medical-services contract worth about $17 billion over about five years.

The contract covers the administration of health care benefits for 2.7 million active and retired military personnel and their dependents in Minnesota and 20 other states.

UnitedHealth disputed the award of the contract in 2009 to TriWest Healthcare Alliance.

Now the Department of Defense said it will consider new proposals.

"We think that we have the best value to provide to military members and their families in those 21 western states, and we are not going to stop pursuing the opportunity to serve those members till we are selected by the Department of Defense to do exactly that," said Matt Burns, a spokesman for UnitedHealth.

UnitedHealth had won a separate contract administer military health care benefits for 11 southern states. But the defense department subsequently gave that contract to a rival firm. UnitedHealth is protesting that award.