WPS Awarded Billions In Defense Department Health Care Contracts

It's Unclear If Madison Company Will Add Jobs

Posted: 7:50 pm CDT July 14, 2009

The Madison-based Wisconsin Physicians Service Insurance Corporation will benefit from some Pentagon health care contracts worth tens of billions of dollars, but so far no one is saying whether that will mean new jobs for the local economy.

So far, WPS officials have refused to talk about the potential for new jobs or any other details about the situation.

On Monday, the U.S. Defense Department awarded more than $55 billion worth of health care contracts in its TRICARE program for military members, their families and survivors.

WPS is linked to two of the contracts -- a $2.9 billion a year contract given to TriWest Alliance LLC, out of Phoenix, and a $2.8 billion a year contract awarded to Aetna, Inc.

In a statement Tuesday to all WPS employees, WPS Vice President and Chief Operating Officer Bill Bathke said WPS "will perform claims processing and other administrative workload for those contracts. Both are huge wins for WPS ... we certainly have a bright future."

For years WPS has done work with TRICARE beneficiaries.

WPS will continue to team up with TriWest as it keeps covering the military in the western part of the U.S.

But the Aetna, Inc., contract for 20 east and Midwest states is new and that's where the new WPS subcontracting work would come in.

Aetna won out over Humana, which is also affiliated with WPS for claims work.

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