UnitedHealth Group’s Change Healthcare unit is set to tackle the massive medical claims backlog of over $14 billion following a cyberattack that disrupted software services last month. The cyberattack, which occurred on February 21, impacted payments to U.S. doctors and healthcare facilities, prompting the U.S. government to investigate. This disruption has especially affected community health centers serving more than 30 million low-income and uninsured patients.
To assist healthcare providers financially affected by the cyberattack, UnitedHealth has already disbursed over $2.5 billion in advanced payments, up from the previously disclosed $2 billion. In addition, the company is extending the repayment period for providers to 45 business days. Change Healthcare plays a vital role in the U.S. healthcare system, processing approximately half of medical claims for a vast network of healthcare providers, pharmacies, hospitals, and laboratories.
Despite the significant progress made in restoring services, UnitedHealth anticipates it will take several months to fully recover from the cyberattack. The company recently went live with its medical claims preparation software, Assurance, and plans to resume its largest clearinghouse, Relay Exchange, on the weekend of March 23. Furthermore, UnitedHealth is working diligently to ensure there are sufficient locations for claims processing and is coordinating with other clearinghouses to prevent capacity issues. While some products are expected to be restored in the coming weeks, there are still uncertainties around the timeline for certain services.
