Search
Close this search box.

U.S. pharmacies crippled by cyberattack at UnitedHealth’s Change Healthcare

ruck (16)

U.S. pharmacies crippled by cyberattack at UnitedHealth’s Change Healthcare

Pharmacies are still grappling with difficulties providing prescriptions Friday following a cyberattack against one of the nation’s largest health-care technology companies that began on Wednesday.

Pharmacies nationwide reported delays in filling prescriptions following a Wednesday cyberattack against Change Healthcare, a technology company that handles orders and patient payments.

“Change Healthcare is experiencing a network interruption related to a cybersecurity issue and our experts are working to address the matter,” the company said in a statement. “Once we became aware of the outside threat, in the interest of protecting our partners and patients, we took immediate action to disconnect our systems to prevent further impact. We will provide updates as more information becomes available.”

Pharmacies across the country have issued notices that the cyberattack is disrupting their ability to process patients’ orders. Scheurer Family Pharmacy in Michigan notified customers in a Facebook post.

“Due to a nationwide outage from the largest prescription processor in North America, we are currently unable to process prescriptions at any of our four locations of Scheurer Family Pharmacy,” the post said. “We are being told that this is temporary but have not been given a time for restored services.”

The pharmacy clarified to concerned patients that it still was able to accept prescriptions but could not process them through the patients’ insurance. A later update stated that its systems were “back up and running.”

Change Healthcare is one of the largest health-care technology companies in the United States. According to its website, the company handles 15 billion health-care transactions annually, and one-third of U.S. patient records are “touched by our clinical connectivity solutions.”

In 2022, health insurance giant UnitedHealth Group completed its merger of U.S. health-care services companies Optum and Change Healthcare in a $7.8 billion deal. The transaction provided Optum broad access to patient records on tens of millions of Americans. Optum provides technology and data to insurance companies and health-care services and supplies technology services for more than 67,000 pharmacies and care to 129 million individual customers.

Mickey Bresman, CEO of the security company Semperis, said the cyberattack was another reminder of the potential threats to the nation’s health-care infrastructure.

“Now with reports surfacing that Change Healthcare has experienced an outage due to a likely ransomware attack and pharmacies across the country are experiencing delays in processing prescriptions, we’re reminded of the challenges health-care providers face daily to ensure business continuity and patient care,” he said.

The American Hospital Association urged healthcare facilities Wednesday to disconnect from Optum and to check their systems for security vulnerabilities: “We recommend that all health care organizations that were disrupted or are potentially exposed by this incident consider disconnection from Optum until it is independently deemed safe to reconnect to Optum.”

Leave a Reply

Your email address will not be published. Required fields are marked *

Related posts

Insurance-technology

InsurTech Priorities for 2024 and Beyond

As we head into 2024, the tech sector is experiencing a shift in focus amid an evolving market landscape. The past few years saw a talent boom with a surge in funding and hiring, leading to widespread workforce changes known as the “Great Resignation.” But recent economic conditions have altered the playing field significantly, with over 86,000 tech layoffs reported in 2024 alone. Now, companies must balance the high cost of operations with new challenges in talent retention and risk management. People, Prices, and Pressures in Tech Managing cash flow has become a top concern for many tech companies. Rising costs and inflation are making it challenging for organizations to sustain growth, with 59% of tech leaders reporting struggles in managing these financial pressures. Interestingly, only 20% are prioritizing funding this year, while 43% are concentrating on increasing revenue through enhanced sales initiatives. This pivot towards financial stability reflects a broader industry sentiment, with over three-quarters of tech firms expressing optimism about market recovery and the potential for growth in product development and automated processes. The Path Forward: Enhancing Risk Management To remain resilient, many tech companies are re-evaluating their approach to risk. While two-thirds of organizations have adopted new risk mitigation strategies, a significant portion is still determining the best path forward. Here are four key strategies that tech firms can consider to strengthen their risk management framework: Looking Ahead: Opportunities Amid Uncertainty Despite current challenges, tech companies are positioning themselves for future success. Economic conditions are stabilizing, interest rates are anticipated to ease, and revenue growth is expected to improve retention rates. By enhancing risk management practices and focusing on strategic growth areas, tech companies can navigate uncertainty with greater confidence and lay a strong foundation for sustained innovation. Ben Jennings, CEO of Embroker, highlights the critical role of innovative insurance solutions in supporting businesses of all sizes and driving future growth in InsurTech. With over 25 years of industry experience, Jennings brings a wealth of expertise in aligning technology and insurance to meet the evolving needs of modern businesses.

Read More
Risk Management

California’s Cannabis Growers Struggle to Find Insurance Amid Rising Wildfire Risks

In California’s wildfire-prone regions, cannabis farmers face unique challenges in securing insurance for their high-value operations. Cannabis, despite its booming $5 billion industry within the state, remains federally classified as a Schedule I substance, preventing many conventional insurance providers from covering the crop. The Wildfire Risk Impacting California’s Emerald TriangleIn areas like Humboldt, Mendocino, and Trinity counties — collectively known as the Emerald Triangle — cannabis cultivators face increased risk. With wildfire seasons growing longer and more intense, even established insurers like State Farm are withdrawing from the market, leaving properties uninsured and at risk. Farmers like Hannah Whyte, whose farm produces up to 1,600 pounds of cannabis annually, have become “uninsurable” under traditional and state-created plans due to federal restrictions. The FAIR Plan’s Limited Options for Cannabis FarmersCalifornia’s FAIR Plan, established to help provide coverage for high-risk properties, excludes cannabis farms, citing federal restrictions. Cannabis growers must either forgo insurance altogether or attempt to cover their farms in other ways — a choice that presents significant risk, especially as wildfires continue to escalate. Regulatory Hurdles and Cost ConcernsEven where insurance is available, premiums for cannabis growers are notably higher than other agricultural sectors, and policies may require additional, costly coverage beyond wildfire protection. Michael Polson, of UC Berkeley’s Cannabis Research Center, highlights that these challenges often stem from policy restrictions on where cannabis farms can be located, placing many within high-risk zones. A Call for Change in Cannabis CoverageAlthough regulatory steps, such as California’s 2022 law allowing insurers to provide cannabis coverage without facing criminal charges, have improved the landscape, the demand for further reform persists. Former insurance commissioner Dave Jones has advocated for expanding the FAIR Plan to include cannabis-related risks, noting that these farmers are essential contributors to California’s economy. As Skyscraper Insurance strives to support a diverse range of clients facing unique challenges, these issues underscore the importance of continually adapting our insurance solutions. At Skyscraper, we aim to work closely with top underwriters and industry leaders to craft comprehensive solutions, even as the landscape of cannabis insurance evolves.

Read More
Try your instant quote