UnitedHealth Group's Optum division has been awarded a contract by the Department of Defense to continue running wellness programs for members of the military.
Optum has worked with the Reserve Health Readiness Program since 2001, and last year provided 1.5 million services to soldiers and their families, according to the Eden Prairie-based company. It did not release an estimate of the value of the contract.
The program is run by Optum's Logistics Health Inc., which was founded in 1999 and is used by governments and businesses to manage occupational health and wellness programs and medical and dental needs.
"It has been a deep honor for our people to serve the health needs of the brave men and women of the U.S. Armed Forces, and with this award we are grateful that we will be able to continue delivering on our commitment to them," Optum CEO Larry Renfro said in a statement.
In April, UnitedHealth's insurance division, UnitedHealthcare, will take over coverage of soldiers and their families in 21 states, mostly in the West.
The $20.5 billion contract is the first for UnitedHealthcare, and could be worth billions of dollars to the company in administrative and management fees.
Jackie Crosby
