Amid paralyzing ransomware attack, feds probe UnitedHealth’s HIPAA compliance

As health systems around the US are still grappling with an unprecedented ransomware attack on the country's largest health care payment processor, the US Department of Health and Human Services is opening an investigation into whether that processor and its parent company, UnitedHealthcare Group, complied with federal rules to protect private patient data.

The attack targeted Change Healthcare, a unit of UnitedHealthcare Group (UHG) that provides financial services to tens of thousands of health care providers around the country, including doctors, dentists, hospitals, and pharmacies. According to an antitrust lawsuit brought against UHG by the Department of Justice in 2022, 50 percent of all medical claims in the US pass through Change Healthcare's electronic data interchange clearinghouse. (The DOJ lost its case to prevent UHG's acquisition of Change Healthcare and last year abandoned plans for an appeal.)

As Ars reported previously, the attack was disclosed on February 21 by UHG's subsidiary, Optum, which now runs Change Healthcare. On February 29, UHG accused the notorious Russian-speaking ransomware gang known both as AlphV and BlackCat of being responsible. According to The Washington Post, the attack involved stealing patient data, encrypting company files, and demanding money to unlock them. The result is a paralysis of claims processing and payments, causing hospitals to run out of cash for payroll and services and preventing patients from getting care and prescriptions. Additionally, the attack is believed to have exposed the health data of millions of US patients.