22 state AGs: UnitedHealth's Change Healthcare hack response inadequate

A group of 22 state attorneys general is urging UnitedHealth Group to provide more financial assistance to providers hurt by the hack on Change Healthcare. 

In an April 25 letter to UnitedHealth Group CEO Andrew Witty, the attorneys asked the company to "enhance and expand" financial assistance for affected providers, provide a dedicated complaint resolution mechanism for state attorneys general and other agencies, and provide independent analysis confirming Change systems are secure. 

"You must do more than you are currently to avoid imposing further harm to our states' healthcare infrastructure and the patients who rely upon it," the attorneys general wrote. 

The letter was led by Minnesota Attorney General Keith Ellison, who sued to block UnitedHealth Group's acquisition of Change Healthcare in 2022. UnitedHealth Group is headquartered in Minnesota. 

"As Attorney General, it is my job to help Minnesotans afford their lives and live with dignity, safety, and respect," Mr. Ellison said in an April 25 news release. "That includes making sure that patients and providers aren't left holding the bag when a too-big-to-fail health care conglomerate does indeed fail." 

Change Healthcare was hacked by a ransomware group Feb. 21. In the following weeks, the company has restored at least 80% of Change's services. Change processes about 15 billion healthcare transactions annually, handling 1 in 3 patient records. 

On April 23, UnitedHealth Group reported data stolen in the attack likely affects a "substantial proportion of people in America." The company established a dedicated call center for individuals whose data was exposed in the hack and will provide free credit monitoring and identity theft protection to those impacted. 

UnitedHealth Group has provided at least $6 billion in advance funding to providers whose revenue was disrupted by the attack, according to an April 18 news release from the company. In their letter, the attorneys alleged the response has been "inadequate." 

Some providers have reported difficulties reaching Change for assistance, and some smaller providers have received assistance offers as low as $10 a week from Change, the attorneys alleged. 

"Furthermore, some providers understand that accepting short-term financial aid will waive any claims they may have against Change or United as a consequence of the breach," the AGs wrote in their letter. "We are also deeply concerned by the perception that practices owned by United may be getting more immediate relief and more favorable terms from the financial assistance program." 

The letter is not a settlement offer, and it does not waive the attorneys' right to any ongoing investigations or legal actions related to the hack, they wrote. 

A spokesperson for UnitedHealth Group told Becker's the company is aware of the letter. 

"Since day one, we have prioritized patient access to care, and providing resources and support to concerned individuals, providers and customers. We continue to offer financial assistance to those providers who need it and encourage them to contact us," the spokesperson said. 

The letter is the latest outcry from officials over the hack and the ongoing fallout. Federal lawmakers criticized UnitedHealth Group's response to the attack in an April 16 hearing. 

Mr. Witty is scheduled to testify before Congress May 1.

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