THE CHANGE HEALTHCARE CYBER ATTACK
On Wednesday, February 21, 2024, Change Healthcare a subsidiary of UnitedHealth Group (UHG) underwent a cyber attack. UHG processes over 15 billion claims a year totaling $1.5 trillion in medical claims, and is estimated to supply clearinghouse services to 50% of all providers nationwide. So an attack on UHG is a testing ground for bigger and future attacks. Let’s learn who was impacted.
Latest Update as of March 8th, 2024 are addressed first. Below these updates you will find our original article and findings:
Latest Update as of March 8th 2024:
- As of Friday, March 8th, 2024, Change Healthcare has not restored its platform (source).
- BlackCat/AlphaV appears to have received a $22 million ransom payout (source).
- Elevance reported a 15% to 20% reduction in daily claims volume (source).
- Appears the broad payment platform could be online as early as March 15th (source).
HOSPITALS AND PROVIDERS SUFFER FROM THIS ATTACK
A group that goes by the name of "Blackcat" and "ALPHV" performed a hack that left hospitals and providers around the nation unable to submit claims for their medical services to UHG, as well as prescription processing. The American Hospital Association President and CEO, Rick Pollack, stated this is the most serious threat to healthcare in America he’s ever witnessed.
PATIENTS ARE SUFFERING FROM THIS ATTACK
While it crippled hospitals and providers around the nation, patients felt the pain first as they were unable to claim their prescriptions from their pharmacies. Secondly, the biggest scar that will only be felt in months and years to come, is the stealing of patient information via once thought “secured medical records.” Personal Health Information (PHI) has been used by hackers for decades under the term “medical identity theft.” Hackers use this information to set up online accounts for shopping, wire transfers, and even to coordinate with other fraudsters in health care for false referrals and healthcare services.
Did you know… 30% of Patients didn’t know that their PHI was stolen? Or that it will take on average $13,500 to resolve the issue and recuperate their correct billing statuses and owed fees? How many Medicare patients truly have $13,500 to help resolve these issues?
ABOUT BLACKCAT / ALPHV
The cyberattack on UnitedHealth Group's Change Healthcare division was conducted by a ransomware group. The group, which goes by the name "Blackcat," has previously hacked major U.S. companies including MGM Resorts International and Caesars Entertainment, two Las Vegas gaming organizations, two unnamed sources told the wire service. Following the attack, BlackCat/AlphV’s website was taken offline.
SAVING FACE THROUGH A SUBSIDIARY: OPTUM
Optum issued what we can only call a “bailout.” Stating it would offer cash payments to hospitals and providers affected by this cyber attack. This was also a tactic to prevent organizations from changing from Change Healthcare to another vendor. Time will tell if this offering was enough to keep market share.
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