Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Factbox-What has UnitedHealth restored and what is next after major hack?

Published 03/14/2024, 01:44 PM
Updated 03/14/2024, 02:11 PM
© Reuters. FILE PHOTO: The corporate logo of the UnitedHealth Group appears on the side of one of their office buildings in Santa Ana, California, U.S., April 13, 2020.  REUTERS/Mike Blake/File Photo

(Reuters) -UnitedHealth Group has brought back online the pharmacy systems at its Change Healthcare (NASDAQ:CHNG) technology unit following the Feb. 21 ransomware hack that disrupted the U.S. healthcare system.

The healthcare conglomerate expects the payment platform to be functional and begin restoring the medical claims network starting mid-March. UnitedHealth (NYSE:UNH) is likely to need several months to make a full recovery, according to security experts.

The following are some of its largest businesses and UnitedHealth's plans for how and when to fix them:

PRESCRIPTION DRUG PROCESSING

Change Healthcare acts as a financial clearing house connecting the companies that managed drug benefits called pharmacy benefit managers with pharmacies. Without that technology, pharmacies cannot verify if a patient is covered by a healthcare plan for a particular drug and how much that patient was expected to pay out of pocket.

As of March 13, all major pharmacy and payment systems are up and more than 99% of pre-incident claim volume is flowing, UnitedHealth said.

There are still pharmacies that remained offline and there is disruption for infusion pharmacies and interruptions for some Medicaid fee-for-service customers, the company has said.   

PRESCRIPTION DRUG COUPONS

UnitedHealth's tech unit processes discounts that manufacturers offer on some of their drugs through electronic coupons. Pharmacies could not apply many of these coupons when Change's systems went down, leaving patients to pay full price for the drugs upfront. Some manufacturers, including Eli Lilly (NYSE:LLY), offered to reimburse patients for the amount their coupons would have covered.

UnitedHealth says its pharmacy network reconnection allows the majority of coupons it manages to again be processed. Coupons handled by rival McKesson (NYSE:MCK)'s RelayHealth have not been disrupted.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

INSURANCE CLAIMS

Healthcare providers including hospitals submit health insurance claims to Change, which sends them to health insurance companies to evaluate and process. After the cyberattack, these providers lost a primary means of processing payments for their services through patients' healthcare plans.

Beginning the week of March 18, UnitedHealth will begin bringing up the claims system for reconnection and testing in a phased manner. It recommends that customers use a workaround by reconnecting through an alternate network in the interim.

It said full service will be restored once testing has been completed.

The company said some providers may need more restoration work before they can submit claims and that there are some who have not been able to implement workaround solutions.

Latest comments

Look out AARP members, this hack means that they know who you are.
Maybe UnitedHealth should have cut some  of the tens of $millions it paid its execs instead of cutting IT. Of course they'll probably get paid even more for mucking through this hack that was caused by their arrogance
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.