Tech & Innovation in Healthcare

Industry Notes:

UHG Faces Class-Action Lawsuit From February Cyberattack

UnitedHealth Group (UHG) is experiencing more headaches over the February 2024 Change Healthcare ransomware attack. On July 22, 2024, the National Community Pharmacists Association (NCPA), in conjunction with dozens of providers from several states, filed a class-action lawsuit against UHG, Change Healthcare, and Optum for losses from the cyberattack.

“UnitedHealth Group and its subsidiaries need to be held accountable for their lax security measures and for their failure to provide our members with adequate support and assurances to alleviate the financial losses our members suffered,” said B. Douglas Hoey, CEO of the NCPA in a press release.

The plaintiffs claim that UHG, Change Healthcare, and Optum failed to protect patient data and then “shut the entire system down” without offering alternative means for pharmacies to process claims, which resulted in healthcare providers being unable to receive reimbursement for their claims. The suit also claims that pharmacies had to apply for loans or shell out money from their reserves to pay for new software.