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Optum/Change Healthcare Cyberattack SPOTREP #3

March 7, 2024  /  TLP:GREEN

Contents

• Situation Overview Update
• Impacts to Health Care

Situation Overview Update

• As of Thursday, March 7, Optum/Change Healthcare continues to diligently work on restoring functionality to their systems.
  • In a statement, Optum anticipates beginning processing claims for Optum Insight (Change Healthcare) pharmacies beginning March 7. This update does not cover all pharmacy claims—only those for Optum Insight pharmacies.
  • According to an announcement on their website, they aim for the Change Healthcare Pharmacy network to be operational for a majority of providers by today.
  • Upon restoration, pharmacies may continue to see delays as the backlog of claims arising from this incident continue to be processed.
• ALPHV/Blackcat was identified as the ransomware attacker. Efforts are ongoing to understand the breadth of impacts to providers and patients.
  • Every day the systems are offline, it makes it more difficult for hospitals, pharmacies, and healthcare providers to provide care, prescriptions, submit insurance claims, and receive payments for the services they provide. Those disruptions are affecting both the patients and providers.
  • Health insurers have noted that nearly 25% of their claims are processed through Optum/Change Healthcare.
• Over the past two weeks, Optum/Change Healthcare has been developing temporary solutions to restore pharmacy systems and ensure patient access to medications and services. One of the temporary solutions introduced by Optum Financial Services was a Temporary Funding Assistance Program aimed at addressing short-term cash flow requirements. This program is designated for providers affected by payment distribution issues; not for those experiencing disruptions in claims submission.
  • American Hospital Association (AHA) has expressed their concerns around the impacts from the cyberattack on Optum/Change Healthcare. Their concerns regarding the duration of system downtime and the implications for the Temporary Funding Assistance Program are outlined in this letter addressed to the leader of UnitedHealth Group.
  • Additionally, AHA has sent a letter to Congress and the Administration emphasizing the seriousness of the situation and advocating for a whole of government response.
• The US Department of Health and Human Services (HHS) is working with UnitedHealth Group (UHG) to understand the potential impacts and disruptions to health care access. Additionally, HHS is coordinating with the Federal Bureau of Investigation (FBI), the Cybersecurity and Infrastructure Security Agency (CISA), the White House and other federal agencies to share threat intelligence to industry partners.
  • While HHS doesn’t have further updates past what UHG has already communicated, they are actively collaborating with hospitals, physicians, pharmacies, and other stakeholders within the healthcare community to address issues concerning cash flow uncertainties, challenges in claim submission, and payment reception.

Impacts to Health Care

• The Center for Medicare & Medicaid Services (CMS) announced they are flexing processes to ensure providers can serve their patients. A list of actionable measures, recommendations, and guidance that CMS is taking can be found here.
  • CMS is working closely with the Medicare Administrative Contractors (MACs) to ensure that providers can service their patients. More information will be released from the MACs this week.

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