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Pentagon Says UnitedHealth May Have to Pay for Contract Blunder

May 7 (Bloomberg) -- The U.S. Defense Department may ask UnitedHealth Group Inc. to reimburse the government after military families experienced long delays getting medical-care referrals.

Minnetonka, Minnesota-based UnitedHealth, the nation’s largest insurer, took over a $20.5 billion contract from TriWest Healthcare Alliance Corp. on April 1.

The contract includes “provisions for the recovery of costs due to poor performance,” said Austin Camacho, a spokesman for the Pentagon’s health-care system, known as Tricare. The government will consider seeking reimbursement from UnitedHealth, he said in an e-mail today.

To contact the reporter on this story: Kathleen Miller in Washington at

To contact the editor responsible for this story: Stephanie Stoughton at

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