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Health Net Federal Services' History as a TRICARE Contractor and the History of TRICARE

Health Net Federal Services, LLC (HNFS) is proud to be the longest serving managed care support contractor, partnering with the Department of Defense for over 30 years. Doing the right thing has always been at the forefront of our decision making. We work hard to serve our customers, using our organization's four key cornerstones: honesty, accountability, transparency, and integrity, and we continue to explore new opportunities to support our customers in meaningful ways.

As the managed care support contractor for the TRICARE West Region, HNFS employs approximately 3,100 employees and provides health care services to approximately 2.9 million uniformed services beneficiaries – active, retired, and National Guard and Reserve members, and their families.



Health Net Federal Services' TRICARE History

1987 – The Department of Defense (DoD) starts exploring managed health care with the CHAMPUS Reform Initiative (CRI) – the precursor to TRICARE. At the time, Health Net Federal Services, LLC (HNFS) was known as Foundation Health.

1988 – Foundation Health is awarded the first demonstration contract (pilot program) in California and Hawaii. We built our California headquarters during this contract and established a trained, experienced and dedicated workforce many of whom continue to work for HNFS today.

1993 – The California and Hawaii demonstration contract ends after five years of solid operation. Managed care support contracts prove to be a successful venture for the government. Foundation Health is awarded a health care contract for the Base Realignment and Closure (BRAC) area in New Orleans – the first TRICARE contract awarded after the CRI.

1996 – The DoD carves the United States into 12 regions for TRICARE health care coverage. Foundation Health is awarded TRICARE contracts in Region 11 (Washington, Oregon, Idaho) and Region 6 (Texas, Oklahoma, Arkansas, Louisiana) and Regions 9, 10 and 12 (California, Arizona, Hawaii, Alaska).

1996 – Foundation Health Corporation (FHC) and Health Systems International, Inc. (HSI), the parent company of Health Net and QualMed, begin merger discussions to build market share and synergies to better serve customers into the future. The companies merge in 1997 creating Foundation Health Systems, Inc. (FHS).

2000 – Foundation Health Systems, Inc. changes its name to Health Net, Inc.

2003 – The DoD consolidates the 12 TRICARE regions to three regions. Health Net Federal Services bids and is awarded the TRICARE North Region contract – the “Next Generation” of TRICARE contracts. The TRICARE North Region includes: Connecticut, Delaware, the District of Columbia, Illinois, Indiana, Kentucky (except Fort Campbell), Maine, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, Vermont, Virginia, West Virginia, and Wisconsin. In addition, the contract covers a small portion of Missouri and Iowa.

2004 – Health Net Federal Services commences the Next Generation (TNex) TRICARE North contract, a contract that is awarded on a five-year term with five one-year option periods.

2008 – January 2008 marks Health Net Federal Services’ 20-year anniversary of partnering with the Department of Defense to enhance and expand the military health system. As a way to give back to those it has been honored to serve, Health Net Federal Services established a scholarship program to be administered through National Military Family Association (NMFA) designating $150,000 to be awarded to military spouses in the TRICARE North Region.

2010 – Health Net Federal Services is awarded the T-3 TRICARE North Region contract, which began on April 1, 2011 for a term of five years, with five one-year option periods.

2013 – Health Net Federal Services commemorates its 25-year anniversary as a Department of Defense managed health care support contractor.

2016 - The DoD consolidates the three TRICARE regions to two regions. Health Net Federal Services bids and on July 21, 2016, the Department of Defense announced it intends to award Health Net Federal Services the TRICARE West Region Contract. The TRICARE West Region contract includes a base period with additional five one-year option periods, with the start of health care delivery to commence January 1, 2018.

The TRICARE West Region Contract is comprised of serving 2.9 million of eligible beneficiaries in 21 states: Alaska, Arizona, California, Colorado, Hawaii, Idaho, Iowa (except the Rock Island Arsenal area), Kansas, Minnesota, Missouri, (except the St. Louis area), Montana, Nebraska, Nevada, New Mexico, North Dakota, Oregon, South Dakota, Texas (areas of Western Texas only), Utah, Washington, and Wyoming.

2018: Health Net Federal Services commences the T2017 TRICARE West Region contract, which began on January 1, 2018, for a term of five years, with five one-year option periods.

History of TRICARE

TRICARE is the uniformed services health care program for active duty and retired service members and their families, as well as members of the National Guard and Reserve and their families, survivors and other eligible beneficiaries. The uniformed services include the U.S. Army, U.S. Navy, U.S. Air Force, U.S. Marine Corps, U.S. Coast Guard, the Commissioned Corps of the U.S. Public Health Service, and the Commissioned Corps of the National Oceanic and Atmospheric Administration.

TRICARE replaced the Civilian Health and Medical Program of the Uniformed Services (CHAMPUS) program in 1993.

TRICARE’s primary objectives are to optimize delivery of health care services in the Department of Defense's Military Health System and to achieve the highest level of patient satisfaction by delivering world-class health care.  

TRICARE combines the health care resources of the uniformed services and supplements them with robust networks of civilian health care professionals, institutions, pharmacies, suppliers and other providers to provide access to high-quality health care services while maintaining the capability to support military operations and military readiness.

Currently, TRICARE is available worldwide and managed regionally in five separate TRICARE regions – TRICARE West, TRICARE East, TRICARE Europe, TRICARE Pacific, and TRICARE Latin America and Canada – by the Defense Health Agency (DHA). DHA has partnered with civilian managed care support contractors in the West (Health Net Federal Services, LLC) and South (Humana Military) to assist DHA and military base clinic Commanders in operating an integrated health care delivery system.