WASHINGTON - One of the Pentagon's major health care contractors, which is fighting to keep its multibillion-dollar contract, recently paid a $10 million fine to the federal government to settle a Justice Department suit over claims the company failed to pass on savings to the military.
TriWest Healthcare Alliance, a consortium of non-profit groups in the West, is one of three main contractors for Tricare, the Pentagon's health care program. It paid the government in September to settle a case in which four employees claimed the company defrauded the government by keeping savings it generated while working on the contract.
TriWest has held the contract - estimated to be worth about $17 billion over the next five years - since 1996. It is now in the middle of a rebidding process that likely will be settled next month.