UnitedHealth, American Hospital Association Spar Over Cyberattack

The American Hospital Association and UnitedHealth Group are at odds about the response to a cyber incident involving Change Healthcare, a UnitedHealth subsidiary, according to an article by The Record.

The Hospital Association said Change Healthcare is not adequately addressing the problems healthcare providers are experiencing in terms of getting reimbursed for services as a result of the attack. Pharmacies and hospitals are having difficulty filling prescriptions and receiving payments from insurers for care.

UnitedHealth is offering a “Temporary Funding Assistance Program” including short-term loans for providers that use the company’s software to get reimbursed by health insurers. According to the American Hospital Association President Richard Pollack it “is not even a band-aid on the payment problems.”

Pollack said that a big chunk of the entire American healthcare system was affected, but the program is available to a very small number of hospitals and health systems. He calls the terms of the agreement for those that do qualify are “shockingly onerous.” Repayment within five days of notice is required and the company’s bank can recoup funds without notification, among other stipulations.

Senator Chuck Schumer has called for government action and asked the Centers for Medicare and Medicaid Services to provide advanced payments to healthcare providers disrupted by recent events. He made his statement at a hospital in New York that is reportedly incurring $2.3 million a week in losses related to the cyberattack.

“We can’t let hackers risk the financial stability of healthcare providers and even critical care to patients across America,” Schumer said.

According to a post on the Ramp cybercrime forum, the UnitedHealth Group had paid a $22 million ransom. 

UnitedHealth has confirmed that the BlackCat/AlphV ransomware gang was behind the attack. But in response to a request for comment about claims of a ransom payment, a UnitedHealth spokesperson said: “We are focused on the investigation.”