UnitedHealth Demands Rapid Repayment Of Cyberattack Relief Loan Billions, Providers Say Push Undermines Recovery (Updated)

UnitedHealth Group UNH is demanding swift repayment of $8.9 billion in emergency loans it issued to medical providers following a massive cyberattack on its subsidiary, Change Healthcare, last year.

The shutdown of Change Healthcare's systems triggered a healthcare crisis, halting medical claims processing for millions of transactions.

The cyberattack compromised the personal data of 190 million Americans.

The cyberattack on Change Healthcare temporarily shut down services that process about 50% of all U.S. medical claims.

The hack affected around 900,000 doctors, 33,000 pharmacies, 5,500 hospitals and 600 labs. Although the claims system and other services are gradually being restored, the aftermath burdened healthcare providers.

The Wall Street Journal on Friday wrote that providers could not process claims, leading to cash flow issues which made it challenging to cover payroll and operating expenses.

Also Read: DOJ Investigates UnitedHealth, Probe Accuses Of Inflating Medicare Diagnoses

In response, UnitedHealth, through its Optum unit, offered interest-free loans via a Temporary Funding Assistance Program, disbursing around $8.9 billion to support providers.

Despite earlier assurances that repayments would be flexible, some healthcare providers now say the company is aggressively pursuing repayments, even as they continue to struggle financially from the fallout.

“Our priority in establishing this program in March 2024 has been to help bridge the gap in short-term cash flow needs for those providers impacted by the disruption of Change Healthcare's services,” said Change Healthcare in response to Benzinga. “Now, more than one year post the event and with services restored, we have begun the process of recouping the interest-free funding we provided to providers — as HHS itself did when it began recouping payments it provided under its own cyberattack lending program in July 2024. We continue to work with providers on repayment and other options, and continue to reach out to those providers that have not been responsive to previous calls or email requests for more information.”

The WSJ report says that UnitedHealth CEO Andrew Witty testified before the Senate Finance Committee in May 2024 that repayments would begin after providers confirmed their finances had stabilized and claims backlogs were resolved.

They would then have 45 business days to start repayments. As of October, the company had recovered approximately $3.2 billion of the loaned funds.

However, several providers report being blindsided by sudden repayment demands.

A Change Healthcare spokesperson defended the company's actions, comparing its loan recovery efforts to those by federal agencies following the hack. The spokesperson said Optum continues to reach out to providers and is working on repayment options for those who haven’t responded.

In December 2024, the Nebraska Attorney General filed a lawsuit against UnitedHealth and its subsidiaries, alleging violations of consumer protection laws following the breach, which affected 575,000 Nebraskans.

The lawsuit alleges that outdated systems, inadequate segmentation and the lack of redundancies at Change Healthcare exacerbated the crisis.

UnitedHealthcare has faced lawsuits over its practices, including allegations that an AI tool used by the company resulted in a high error rate and denied necessary care to many patients.

The insurance giant has garnered immense attention following the murder of its insurance unit CEO Brian Thompson in New York.

Luigi Mangione, the alleged perpetrator, pleaded not guilty to murder and weapons charges. Police found shell casings at the scene with the words "deny," "defend," and "depose," commonly associated with insurance industry strategies for handling claims and disputes.

UNH Price Action: UnitedHealth Group stock is down 0.27% at $585.13 at publication Tuesday.

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Photo: UnitedHealth Group via Shutterstock

The article was updated with a response from Change Healthcare.