WPS Health Insurance

WPS receives contract renewal from federal government to continue administering military health insurance benefits



Madison, WI—July 18, 2014

WPS has received an important contract renewal from the federal government to continue administering military health insurance benefits.

Formally known as the TRICARE Dual Eligible Fiscal Intermediary Contract (TDEFIC), it serves beneficiaries who are eligible for the TRICARE For Life program. The current WPS contract for this program ran through June 30, 2014.

Under the new contract, WPS will administer TRICARE For Life for the next six years. This means WPS will be able to retain many employees who work on the TRICARE business.

“This is a major success story for WPS,” said Brian Brugger, executive vice president of the WPS TRICARE Division. “TRICARE is an important part of our business at WPS, and we worked very hard to retain this contract. The quality of our workforce was a key reason that the government wants WPS to continue as a major contractor for TRICARE.”

President and CEO Mike Hamerlik said winning this contract will help secure the future of WPS.

“We are keenly focused on finding innovative ways to adapt to a changing insurance environment,” he said. “At WPS, we have been making significant investments in new technology and processes to meet the needs of our customers, including the federal government. We have visionary plans to move forward as a company, and winning this contract proves we’re on the right track. We will continue to seek new government contracts when there’s a good match with our capabilities,” he said.

"Our TRICARE employees deserve a round of applause from all of us for prevailing in this increasingly competitive business. WPS plans to be a partner with TDEFIC for a long time,” Hamerlik said.

Other companies that were vying for the contract might protest the award, but Brugger said WPS is confident that the award will be affirmed.

Although the rebidding competition officially started in April 2013, WPS has been preparing since it received the current contract in 2007, Brugger said.

“We have strengthened the relationship with the Defense Health Agency (which manages TRICARE contracts on behalf of the Department of Defense) to understand their needs. We committed ourselves to ensuring those eligible for the TRICARE For Life benefit receive the highest level of service because they have sacrificed so much while serving our country,” he said.

“We also started working on our story for the next bid by making sure our performance exceeded DHA’s expectations. In addition to competitive pricing and focusing on exceeding our customer’s expectations, our past performance became the basis of our proposal to differentiate us from competitors. Without the hard work of our employees, we wouldn’t have such a good story to tell,” Brugger said.

About WPS Health Insurance
Founded in 1946, WPS is Wisconsin’s leading not-for-profit health insurer, offering affordable individual health insurance, family health insurance, high-deductible health insurance, and short-term health plans, as well as flexible and affordable group plans and cost-effective benefit plan administration for businesses. The WPS Medicare division administers Part A and B benefits for millions of seniors in multiple states, and the WPS TRICARE division serves millions more members of the U.S. military and their families. In 2014, the international Ethisphere® Institute named WPS one of the World’s Most Ethical Companies for the fifth straight year. WPS is the only health insurance company to earn this distinction five times. For more information about WPS, visit www.wpsic.com.