UnitedHealth Expedites Service Restoration Following Cyberattack

UnitedHealth Group UNH announced on Monday that it has taken proactive measures in response to the cybersecurity breach affecting its technology arm, Change Healthcare. 

The company has disbursed over $2 billion in advance payments to support healthcare providers facing financial strain due to the incident. 

These payments are part of a concerted effort to alleviate the impact of the attack, demonstrating UnitedHealth’s commitment to assisting its partners during this challenging period. 

Biden administration officials have called upon UnitedHealth to take decisive action to stabilize the U.S. health system. 

Health and Human Services Secretary Xavier Becerra and White House domestic policy chief Neera Tanden implored Andrew Witty, CEO of UnitedHealth, and other industry leaders to expedite emergency funding for affected providers.

Monday, Change Healthcare announced the launch of new medical claims preparation software, marking a crucial move towards resuming services. 

Thousands of customers will gain access to this software in the coming days. The company plans to provide third-party attestations before services commence. 

After this initial phase, the restoration of services will proceed through multiple activation phases until all customers are reconnected.

The company also suspended prior authorizations for most outpatient services and utilization review of inpatient admissions for Medicare Advantage plans to assist care providers.

Last week, UnitedHealth’s subsidiary Change Healthcare’s pharmacy network was reinstated following a cyberattack that had widespread repercussions on the nation’s healthcare infrastructure, heavily reliant on insurance. 

Citing the company, Reuters noted that as of March 13, all major pharmacy and payment systems are up, and more than 99% of pre-incident claim volume is flowing.

Earlier this month, the U.S. Department of Health and Human Services’ Office for Civil Rights issued a crucial advisory. 

The U.S. agency has opened an investigation into the cyber-attack, which disrupted critical healthcare and billing operations nationwide.

Price Action: UNH shares are up 1.02% at $492.12 on the last check Tuesday.