Pharmacists File Class Action Over Change Healthcare Cyberattack

Paige Minemyer, reporting in Fierce, says the National Community Pharmacists Association is the lead plaintiff in a class action lawsuit filed by providers over the Change Healthcare cyberattack. The attack caused significant disruption across the entire healthcare industry.

According to the plaintiffs, the goal is to recover losses due to the attack’s disruptive effects. They allege that Change did not take “reasonable precautions” to defend against the data breach.

The lawsuit argues that the lack of precaution meant Change clients were misled about the company’s network security. They also allege that the Change Healthcare cyberattack led to significant financial losses, and they were never reimbursed for services as they tried to navigate the downed system.

In a press release, B. Douglas Hoey, CEO of NCPA, said that the organization had opposed UnitedHealth’s acquisition of Change Healthcare as soon as it was announced and that the breach “proves that bigger is not better.”

Change Healthcare was disconnected from its clients and the rest of UnitedHealth Group to minimize damage when the breach was discovered. The lawsuit alleges that this was done without offering pharmacies a workable alternative, cutting off claims processing and reimbursement.

“UnitedHealth Group and its subsidiaries need to be held accountable for their lax security measures and for their failure to provide our members with adequate support and assurances to alleviate the financial losses our members suffered,” Hoey said. 

He continued, “Companies are so big they cannot protect every entry point and cannot respond quickly due to internal bureaucracy. The fact that issues remain unresolved is a testament to this point. This breach has cost our members significant money and time, and it has still not been resolved months later.” 

UnitedHealth Group did not respond to a request for comment. According to its second-quarter earnings, since the breach, it has paid out $9 billion in advanced payments and interest-free loans to providers.