UnitedHealth’s Loan Repayment Tactics Face Backlash

UnitedHealth Group is under scrutiny for its handling of the loan repayment issued to healthcare providers following the February 2024 ransomware attack on Change Healthcare, reports Steve Adler in the HIPAA Journal.

The loans were intended as temporary relief during a time of operational paralysis caused by the breach. The repayment process is a source of concern across the healthcare industry.

Reports of aggressive collection tactics and financial strain among providers have led to growing pressure from industry stakeholders, including the American Medical Association (AMA), for more flexibility and fairness.

The ransomware attack significantly disrupted Change Healthcare’s systems, halting claims processing and interrupting the revenue cycle for providers nationwide.

In response, UnitedHealth Group, through its Optum division, provided interest-free loans totaling $9 billion to support providers during the outage. Repayment was expected to begin once operations were restored, with terms giving providers 45 business days to pay after receiving invoices.

However, despite operations resuming, healthcare providers have struggled to recover, and only $3.2 billion has been repaid to date. Many providers have faced claim denials due to missed deadlines and say they were unable to file claims for months.

Reports have emerged of providers receiving demands for complete loan repayment under threat of withheld reimbursements, despite earlier assurances from UnitedHealth that repayment would be based on providers’ financial readiness.

The AMA has formally requested a more individualized repayment approach to avoid further financial distress.

Attorneys advising healthcare clients should closely monitor developments around repayment enforcement and claims denials. There may be grounds for legal challenges, particularly if providers can demonstrate financial harm or unfair collection practices.

Advocacy for customized repayment plans and regulatory engagement may also be critical for provider clients navigating the aftermath of this unprecedented disruption.