Insurer UnitedHealth Group announced during an earnings call Tuesday morning that the cyberattack that paralyzed operations at one of its subsidiaries earlier this year cost the company $1.1 billion during the second quarter.
The cyberattack has been described as one of the largest healthcare breaches in history and “could cover a substantial proportion of people in America.”
In February, hackers gained access to Change Healthcare’s systems and encrypted large amounts of data, preventing employees from accessing vital records. The company worked with law enforcement agencies and reportedly paid a ransom.
Change provides payment and revenue management tools, including technology used to submit insurance claims. The cyberattack disrupted payments and claims processing nationwide.
UnitedHealth, which has major operations in Hartford, said Tuesday that most of Change’s services have been restored, and it has started notifying customers who were affected. The company has established a dedicated call center for customers with questions about the attack and is offering free credit monitoring and identity theft protections to anyone affected for two years.
Also, UnitedHealth said it has provided more than $9 billion in advance funding and interest-free loans to support care providers.
According to Axios, the cyberattack could cost UnitedHealth $2.3 billion to $2.45 billion this year – more than $1 billion than the company projected earlier.
The company said it currently estimates the total full-year 2024 impact at $1.90 to $2.05 per share.
Otherwise, UnitedHealth had a positive second quarter, posting a $4.22 billion profit. The company generated $98.9 billion in revenue, up nearly $6 billion compared to last year. The growth was led by an increase in Optum RX’s customer base, the company said.
UnitedHealth Group’s subsidiaries UnitedHealthcare and Optum have a presence in downtown Hartford and in other parts of the region. The company employed 5,737 people in Connecticut in 2022, out of 210,000 nationwide, according to the Hartford Business Journal’s Book of Lists.