UnitedHealth's Cybersecurity Breach - Insurance Giant May Need Several Months For Full Recovery

In a recent statement, UnitedHealth Group Inc UNH announced plans to restore disrupted services for its medical claims and payments platforms by mid-March following a cyberattack that targeted its Change Healthcare tech unit. 

The attack, orchestrated by the hacking group ALPHV, also known as “BlackCat,” severely impacted the company’s ability to process insurance claims and payments, affecting healthcare providers, including hospitals, and disrupting electronic pharmacy refills.

Citing security experts, Reuters highlighted that the cyberattack has proven to be one of the most disruptive hacks against America’s healthcare infrastructure. 

While some systems are gradually returning to normal, the largest U.S. health insurer is expected to need several months for a full recovery.

The Change Healthcare unit processes approximately 50% of medical claims in the U.S. for a vast network of healthcare providers, including 900,000 physicians, 33,000 pharmacies, 5,500 hospitals, and 600 laboratories. 

This widespread impact makes it an attractive target for hackers looking to access a substantial amount of healthcare data.

UnitedHealth aims to have its payment platform operational by March 15, with the medical claims network expected to be restored on March 18, Reuters highlighted.

However, cybersecurity analysts suggest that a full recovery may take much longer, possibly extending to several months or even a year.

While the company has not disclosed whether a ransom was demanded, an online cybercrime forum post claims that UnitedHealth paid $22 million to ALPHV for regaining access to its systems and retrieving approximately eight terabytes of allegedly stolen data. 

In the aftermath of the ransomware attack on UnitedHealthGroup’s Change Healthcare unit, the repercussions are reaching critical levels, forcing healthcare providers to either halt patient treatment or cease paying their staff.

In response to the recent cyberattack, the American Medical Association has called upon the Biden Administration to release emergency funds to support physicians grappling with the aftermath. 

Price Action: UNH shares are up 0.75% at $482.36 on the last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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