Health Net says payments from military delayed due to shutdown
Oct 9 (Reuters) - Managed care company Health Net Inc said payments for healthcare services it provides to military families would be delayed due to the U.S. government shutdown.
The U.S. Defense Health Agency (DHA) said on Oct. 2 that it would not be able to reimburse the company as it did not have the legal authority, Health Net said in a regulatory filing.
Peer Humana said on Tuesday the shutdown would delay payments related to its military health services contract.
The DHA notice said once funding was received, it would pay Humana and Health Net with interest, the companies said.
Health Net, which has been providing managed care services to the Department of Defense for 25 years, said it would continue to administer the contract for a two-week obligation period and it could be liable for claims of about $106 million during that time if the government does not authorize payment.
Health Net said it had enough working capital and credit capacity to fund the payment of the claims and the delay would not adversely affect its results or financial position.
Health Net provides health care services to 2.8 million people under the Tricare program, which provides health benefits for active and retired military personnel and their families.
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