July 17, 2024
Payers | Tea Leaves
  • UnitedHealth Group revealed in its second-quarter earnings report that costs stemming from a significant cyberattack on its Change Healthcare unit are expected to range between $2.3 billion to $2.45 billion this year. This projection surpasses earlier estimates by over $1 billion and will impact earnings by $0.60 to $0.70 cents per share due to business disruptions. The cyberattack, which occurred in February, ranks among the largest in health care history and severely disrupted claims processing and payments to health care providers for an extended period. Approximately one in three Americans may have been affected by the breach, raising concerns about widespread fraud and identity theft. Despite these challenges, UnitedHealth Group reported profits of $4.2 billion for the second quarter, exceeding Wall Street’s expectations, although down from $5.4 billion compared to the previous year, primarily due to the cyberattack. (Articles here and here)