UnitedHealth Change Healthcare Unit to Address $14 Billion Medical Claims

UnitedHealth Group’s Change Healthcare unit will commence processing a backlog of medical claims totaling over $14 billion as it resumes software services disrupted by a cyberattack last month.

A cyberattack on February 21 disrupted services at the technology unit, affecting payments to U.S. doctors and healthcare facilities. The disruption prompted a probe by the U.S. government and has particularly impacted community health centers serving millions of uninsured and low-income patients.

Financial Assistance to Healthcare Providers:

UnitedHealth has provided advanced payments exceeding $2.5 billion to financially assist healthcare providers affected by the disruption. The repayment period for providers has been extended to 45 business days.

Change Healthcare plays a crucial role in the U.S. healthcare system, processing approximately 50% of medical claims for a vast network, including physicians, pharmacies, hospitals, and laboratories.

The company expects several months to fully recover from the cyberattack. Key software services, such as Assurance and Relay Exchange, are being restored gradually, with online functionality being reinstated in phases.

Coordination with Payers and Clearinghouses:

UnitedHealth is working closely with payers to ensure maximum availability of claims processing locations. Additionally, coordination with other clearinghouses is underway to mitigate capacity issues.

Various products handling eligibility of claims and pharmacy claims submission software are expected to go online in the coming weeks. The company aims to provide updated information on restoring other products as timelines become clear.