Minnesota-based UnitedHealthcare wins Tricare contract

MINNETONKA, Minn. — UnitedHealth Group Inc. announced Monday that it has won a military health care contract worth $1.4 billion over five years.

The insurance company said that its subsidiary, UnitedHealthcare, will provide health care services for roughly 2.9 million active and retired members of the military who receive Tricare benefits in 21 Western states under the deal. The company will provide claims processing, cost management, quality assurance as well as fraud and abuse detection.

The nearly 6-year long contract is scheduled to begin in 2013.

Jefferies analyst David Windley, who rates UnitedHealth stock "Buy," estimated Monday that the contact should add a penny or two to annual earnings per share once it begins.

Shares of UnitedHealth, based in Minnetonka, Minn., rose 60 cents to $56.19 in afternoon trading.

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Copyright 2012 The Associated Press.

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