UnitedHealth Group (UNH) is set to report its third-quarter 2024 earnings on October 15th. While growth in premiums, commercial memberships, and Optum business are expected to drive positive results, elevated expenses, declining Medicaid memberships, and the impact of a cyber-attack could temper profit growth. Despite a strong long-term outlook, investors may want to consider waiting for a better entry point as the stock appears overvalued.
Following the ransomware attack on its subsidiary Change Healthcare, UnitedHealth Group has enabled multi-factor authentication (MFA) across all of its systems exposed to the internet. Previously, a lack of MFA on Change Healthcare’s systems allowed hackers to access a server and breach the company’s network. UnitedHealth Group CEO Andrew Witty acknowledged the omission and blamed it on the incomplete integration of Change Healthcare’s systems after the acquisition in 2022. Despite a company-wide policy requiring MFA on external systems, Witty admitted that one server lacked protection, enabling the hackers’ entry point. At a congressional hearing, Witty faced questions about the cyberattack and the reasons for the unenforced policy. UnitedHealth Group is still working to determine the full impact of the hack and has not yet notified affected individuals.
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UnitedHealth Group (UHG) has confirmed that the February cyberattack on its subsidiary, Change Healthcare, compromised the data of a significant number of Americans. The company has identified files containing protected health information (PHI) and personally identifiable information (PII) potentially covering a substantial proportion of the U.S. population. While UHG has not found evidence of complete medical histories or doctors’ notes being stolen, they acknowledge that the attack’s scope will require several months to investigate and notify affected customers.
In an effort to protect patient data, UHG confirms that it paid a ransom to the threat actors. The company has set up a website for customers to obtain information and has established call centers to provide free credit monitoring and identity theft protection for two years.
The Change cyberattack has raised concerns about data consolidation and vertical integration in the healthcare industry. The Justice Department previously attempted to block UHG’s acquisition of Change Healthcare due to antitrust concerns.
Federal Trade Commission Chair Lina Khan highlighted the vulnerability created by data concentration and emphasized the importance of data minimization as a solution.
Personal information potentially covering a large portion of the US population may have been compromised in a cyberattack on Change Healthcare, acquired by UnitedHealth Group. While medical histories and doctor charts appear secure, the company is investigating and expects notification of affected individuals to take months. Some protected health information was briefly posted online on the dark web, and UnitedHealth is monitoring the situation. Free credit monitoring and identity theft protection are available to those impacted, and federal investigators are examining the breach. UnitedHealth has faced financial losses due to the attack and is working to restore disrupted services.
UnitedHealth Group confirmed a ransomware attack on subsidiary Change Healthcare, resulting in a significant theft of protected health information potentially affecting a substantial portion of Americans. The hackers exfiltrated personal data and internal files but denied the compromise of medical histories. A new hacking group, RansomHub, published patient information as part of an extortion attempt. UnitedHealth acknowledges the leaked files but has not officially confirmed ownership. The attack caused widespread outages, disrupting healthcare services and costing UnitedHealth over $870 million in losses.
UnitedHealth Group has confirmed that a cyberattack on its technology unit, Change Healthcare, has resulted in a breach of health and personal information. The company estimates that a ‘substantial proportion’ of Americans may be affected, but the exact number of individuals impacted remains unknown. UnitedHealth is actively monitoring the situation and working to identify affected individuals. The cyberattack has disrupted payments to doctors and healthcare facilities nationwide.
