WPS retains $484 million government contract Financial Services

WPS Health Insurance announced on Friday, that it has secured a $484 million major government contract renewal over six years that will help up hold various hundred jobs.

The contract renewal will facilitate WPS to carry out its administrative activities of TRICARE for Life, a Medicare supplement program that serves about 2 million military retirees over the age of 65.

According to the company official, the program accounts for about 11 per cent of WPS’ total revenue.

TRICARE acquires as vital part of our business activities at WPS, the contract retention resulted due to our constant hard work and even reflects as a major success story for the company, Brian Brugger, executive vice president of the WPS TRICARE Division.

WPS basically was awarded the TRICARE contract in 2004 and had got renewed once before. The new contract will run for six years and go into effect in June 2015.

WPS has about 3,300 employees out of which 2,300 are working at its Monona headquarters itself. Two years back, WPS lost a contract for the Western Region of TRICARE, which led to a loss of about 500 jobs, including 250 locally.

With the result of this new renewal contract, we’ll be able to hold many of the jobs we have in place at present. Earlier, we had undergone through a similar contract process where we lost the West Region contract and had to lay off all the employees. It would’ve been reasonably comparable to what happened. It’s a very large contract and we wouldn’t have been able to take in all the employees if this contract was not awarded to us, added, Brugger.

According to the WPS President and CEO Mike Hamerlik - The contract will assist securing the future of WPS. We have been making vital investments in new technology and processes to match up the clients requirement, consisting the federal government. We are moving forward with a set of visionary plans and retaining this contract shows that we are on right path. The company will carry out to hunt new government contracts when there’s a fine match with its capabilities.