Health Net may have won a reprieve from the federal Government Accountability Office that staves off the company's loss of a $16 billion military contract, company officials confirmed Wednesday.
There is no guarantee that Health Net Federal Services will retain its contract with the Pentagon, one of three regional contracts as part of the $55.5 billion TRICARE program, which covers 9.4 million military personnel, retirees and their families. Health Net provided coverage for personnel in the program's North Region.
In July, Health Net was beaten out by Aetna for the contract, but Health Net appealed to the GAO. The agency upheld the appeal on Wednesday, but did not disclose its reasons and it is unclear how the Department of Defense will respond.
Hundreds of jobs at Health Net's Rancho Cordova offices could be at stake if the company loses the contract. The current contract expires in April.
The company said it has about 2,500 employees in Rancho Cordova - about 900 assigned to the military contract.
- Bobby Caina Calvan
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