UnitedHealth Cyberattack Costs to Hit $2.3B This Year

The health giant is totaling its losses after the Change attack.

UnitedHealth adjusted its 2024 outlook after assessing the total impact of the Change Healthcare cyberattack.

The health giant is expected to lose roughly $2.3 to $2.45 billion due to impacts from the attack, which is up from $1 billion seen in previous projections. Even after enduring one of the worst cyberattacks in U.S. history though, UnitedHealth’s earnings prevail.

Earnings & Stock Outlook

Despite provider loan initiatives and mounting medical costs, UnitedHealth still reels in large profits. The company’s revenues soared to $98.9 billion, jumping nearly $6 billion year- over- year due to United’s large, diverse portfolio that includes UnitedHealthcare insurance and several Optum health service units. UnitedHealth’s earnings from operations in Q2 were $8.7 billion, which include the Change Healthcare business disruption impacts.

 “The consistent outlook absorbs an estimated $0.60 to $0.70 per share of business disruption impacts for the affected Change Healthcare services, which has increased $0.30 per share since the initial estimate was provided last quarter,” the company disclosed in the report.

UnitedHealth confirmed in its latest earnings report that the company’s adjusted net earnings outlook was $27.50 to $28.00 per share.

UnitedHealth also confirmed in the report the sale of its South American operations, and intentions to sell the remaining ones. The total South American impacts in the quarter were $1.28 per share.

Aftermath of Change Attack

When the Change cyberattack hit in February, it brought reimbursement to an almost stand-still for providers all over the country. UnitedHealth had shut down its IT systems, and hundreds of health systems descended into chaos, unable to process claims and pay their providers.

Two of UnitedHealth’s biggest money drainers were loans sent out to struggling health systems and a ransom payment to the cybercriminals behind the attack. CEO Andrew Witty confirmed in a written testimony that it was his decision to pay a $22 million ransom payment to the cybercriminals who exposed patient data regardless. It’s estimated that one in three Amercians had personal health data exposed in the attack.

UnitedHealth also sent payments totaling $9 billion to struggling providers in the form of interest-free loans. UnitedHealth said it continues to provide financial support to providers who are still in need. UnitedHealth has since restored most of its Change services, and Change has also begun notifying individuals who have had their data exposed.

 Currently under investigation by the Department of Justice for its business practices, UnitedHealth operates the largest private insurer in the country.