UnitedHealth announces improvements to relief program for cash-strapped providersUnitedHealth Group makes progress in restoring systems after cyberattack chaos

UnitedHealth Group has made strides in restoring its systems after a cyberattack last month caused chaos at pharmacies and disrupted claims processing at medical facilities across the country. The Minnetonka, Minnesota-based healthcare giant has announced that its subsidiary, Change Healthcare, which has been offline for over two weeks, is expected to start coming back online by the end of next week.

In addition to this progress, UnitedHealth has also announced enhancements to its financial relief program for cash-strapped healthcare providers. The company had received criticism from hospitals earlier this week, as clinics and hospitals struggled to submit claims, raising concerns about a potential cash crunch that could make it difficult for them to cover their expenses without bridge financing.

The company has confirmed that electronic prescribing for pharmacies is now fully functional, with claim submission and payment transmission also available. They have also stated that an electronic payment system will be available for connection starting on March 15. Testing and reestablishment of connections to the claims network and software is expected to begin on March 18, with service being gradually restored throughout the week.

While healthcare providers have welcomed the promise of improvements, they have also expressed that their problems are far from being solved. The hospital association has stated that many health systems have been providing prescriptions and care, with the hope that payments will eventually be made. However, the trade group has also noted that hospitals are already facing depleted reserves and could soon face the same struggles as providers in other states who are struggling to pay their bills and cover the costs of essential treatments, such as chemotherapy drugs for patients.

The process of fully restoring the payment system is expected to take several months, which will bring about an "unprecedented administrative and financial burden on our patients and providers," according to the hospital association.

The cyberattack, which occurred on February 21, led UnitedHealth to suspend operations of the electronic data clearinghouse at Change Healthcare, a system that has processed half of all medical claims in the United States in recent years, including those from pharmacies, hospitals, and clinics. The company initially reported that a "nation-state associated cyber security threat actor" had accessed some of their IT systems at Change Healthcare. Later, it was revealed that the attack was likely carried out by a group known as ALPHV/Blackcat, which has a history of encrypting data and holding it hostage in exchange for large cryptocurrency payments.

Earlier this week, there were indications that a ransom may have been paid to an account linked to ALPHV. In their update on Thursday evening, UnitedHealth Group also announced that they are taking several steps to expedite reimbursement to healthcare providers for services provided to seniors. This includes temporarily suspending prior authorizations for most services in their Medicare Advantage health plans, with the exception of durable medical equipment, cosmetic procedures, and certain therapies paid for under Medicare Part B. The company has also temporarily suspended utilization review for Medicare Advantage inpatient admissions.

The impact of the systems outage has varied, depending on how heavily hospitals and clinics relied on the Change Healthcare systems. The Minnesota Hospital Association has reported that hundreds of millions of dollars in payment claims have been held up in the system. Some healthcare systems have reported significant ongoing problems, while others have seen some progress.

However, Dr. Neil Shah of Clarus Dermatology in New Brighton has stated that he has not seen any changes in the claims submission process yet. Even if UnitedHealth is able to stick to their schedule for repairs, healthcare providers will have gone nearly a month without access to the claims processing system. Maggie Williams, co-owner of Flourish Business Solutions in Bloomington, Minnesota, has cautiously welcomed the news of the repairs, but has also expressed that there are still many unanswered questions. Williams, whose company handles billing for a dozen independent mental health providers, has stated that healthcare providers have been anxiously waiting for a timeline for repairs.

© 2024 StarTribune. Distributed by Tribune Content Agency, LLC.

David Lamy
David Lamy Author
David Lamy owns the Bachelor in Atmospheric Science Degree. He is associated with Industry News USA from last 2 years. With proficiency in his work, David obtained a strong position at Industry News USA and heads the Science section. “Weather forecasting” is the field of his interest. He bags total 5 years of experience in this field. Apart from his routine work, David loves to explore his cooking skills. He has participated in various cookery shows.