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UnitedHealth Group announced Wednesday that it has paid an additional $1 billion to providers affected by the Healthcare Reform cyberattack, bringing the total payout to more than $3.3 billion. The agency that owns Medical Solutions announced in February that a cyber threat actor had accessed some of the department’s information technology networks.
Change Healthcare processes more than 15 billion payments annually and processes one-third of all patient billing information, reacting quickly when a threat is detected. However, the effects of the incident left many doctors temporarily unable to write prescriptions or receive reimbursement for services from insurance companies.
Amid the financial crisis caused by the strike, UnitedHealth announced a temporary financial assistance program to help struggling doctors. The $3.3 billion advance provided to alleviate the current financial crisis does not need to be repaid until data flows return to normal. Government agencies, including the Centers for Medicare and Medicaid Services, have also implemented additional measures to facilitate interim payments to affected physicians.
UnitedHealth expects the impact to continue into April as we work to restore the Health System. The company began processing a backlog of claims last week, which exceeded $14 billion, and the claims began to flow. But UnitedHealth shares have fallen more than 6% since the cyberattack was reported.
UnitedHealth blamed the attack on ransomware group Blackcat, which is notorious for stealing sensitive data and threatening to kill the public if ransom demands are not met. . The U.S. Department of Homeland Security announced a reward of up to $10 million for information identifying or locating cyber actors linked to Blackcat.
While UnitedHealth is still investigating the extent of the data breach, Rep. Jamie Raskin asked Mayor Andrew Witty to provide information about the crime and its impact. The House Health Care and Accountability Committee requested a written response addressing the long-term impact of the Health Care Reform Act by April 8.
In response to an unprecedented cyberattack, the Biden administration launched an investigation into UnitedHealth, highlighting the severity of the situation and its impact on the nation’s healthcare, drinking water and insurance business. UnitedHealth is committed to working with law enforcement and third-party cybersecurity experts to address the consequences of the breach and provide appropriate support to those affected.