Tag Archive for: Healthcare

Ransomware payment debate resurfaces amid Change Healthcare incident

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A hotly debated flashpoint in the cybersecurity community is getting renewed attention as healthcare stakeholders work to rebound from a major ransomware attack that’s roiled the U.S. health insurance market over the past month.

The Feb. 21 Change Healthcare ransomware attack carried out by the ALPHV/Blackcat hacking gang has delayed prescription fillings and led to cash crunches at clinics and other facilities. The American Healthcare Association said that 94% of hospitals are signaling financial impact due to the incident, with some providers losing upwards of $1 billion per day in revenues.

Change Healthcare reportedly made a $22 million ransom payment to the hackers. Soon after, the cybercrime collective appeared to stage a fake takedown of their own site. But analysts expect the group to reemerge under a new name.

The U.S. over the past year has been working with international partners to take a firm stance against ransom payments, though surveyed experts have not agreed on a single policy.

Some cyber industry leaders say that paying ransoms should be banned because it emboldens cybercriminals and helps fund more illicit activities, and that, in some cases, paying a ransom does not necessarily guarantee that compromised data will be returned.

Others argue that total bans put too much pressure on victims, and that sometimes payments need to be made in order to recover vital systems, like those seen in hospitals and critical infrastructure.

In a briefing with reporters Monday, the Department of Health and Human Services said it has not yet taken an official position on whether ransom payments should be banned, and later told Nextgov/FCW it would defer to the National Security Council and FBI on the matter.

The White House is maintaining its previously established position that ransoms should not be paid because payment incentivizes cybercriminals to conduct more ransomware attacks.

The Biden administration “strongly discourages paying of ransoms, to stop the flow of funds to these criminals and disincentivize their attacks,” Anne Neuberger, deputy national security advisor for cyber and emerging technology at NSC said in a statement to Nextgov/FCW.    

The FBI declined to…

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Higgins Welcomes System Restoration after Change Healthcare Cyberattack

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WASHINGTON, D.C. – Congressman Clay Higgins (R-LA) announced that, per reports, Change Healthcare, a segment of UnitedHealth Group, has restored much of its electronic payment system after a 3-week system outage due to a ransomware attack. Claims processing is expected to resume today, March 15, with a full system restoration phased in the next week.

 

In February, Change HealthCare publicly disclosed that it had been the victim of the most significant cyberattack on the U.S. health care system in American history. This attack severely impacted not only the health care industry but also millions of Americans who rely on the services provided by Change HealthCare. The organization is responsible for 15 billion health care transactions annually and touches 1 in every 3 patients’ records.

 

The culprit, ALPHV/BlackCat, demanded immediate financial compensation to restore services online. Unfortunately, various Veteran Homecare facilities and Small Business health care providers across South Louisiana were impacted by the attacks, leaving many organizations unable to process payments, receive prescriptions, and fill health claims.

 

“The cyber warfare that goes on around us, sight unseen, should concern everyone,” said Congressman Higgins. “With cyberattacks becoming increasingly prevalent, we as a nation must make it a priority to focus on protecting our computer systems. Some of the most innovative ideas and products for cyber warfare originate from American startups and small businesses. We must harness their expertise to prevent, mitigate, and defend our country against cyberattacks. We cannot allow situations like Change Healthcare to impact the daily lives of hardworking Americans because our cyber developments are not up to speed and able to compete in the international marketplace.” 

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Ransomware attacks targeting local healthcare groups

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Barbara McAneny with the New Mexico Cancer Center says they have had to change the way they work due to a string of ransomware attacks on Optum and United Health Care. “This is an important development for every health care entity in the country,” McAneny said.With Optum being one of their partners, it’s affected a number of services they provide.”Our ability to check whether or not patients are authorized by their insurance to get a prescription or treatment went away,” McAneny said.Due to the attack on Optum, the center also can’t submit claims or receive payments. Tech experts wonder how an attack like this continues to affect the health care industry.”It’s interesting given that the impact is so great that you would think that we would have turned the corner many years ago and started beefing up, you know, our cyber security programs in that space,” Deron Grzetich said.The New Mexico Cancer Center has not had its information breached — and has not been victim to this ransomware attack. But McAneny is concerned for other practices in the state and how this affects people’s ability to receive prescriptions, and if personal information is being stolen through other providers.Other groups affected by these ransomware attacks are UnitedHealth and Change Healthcare. “Anyone who’s filled a prescription or seen a physician or dentist or any health care provider is at risk to have their own personal identity stolen,” McAneny said.In the wake of this attack, she offers this to calm anyone seeking help at the cancer center.”We are going to be treating our patients as we always have,” McAneny said.She says the center is still able to fill prescriptions in-house, but can’t send orders to outside pharmacies.

ALBUQUERQUE, N.M. —

Barbara McAneny with the New Mexico Cancer Center says they have had to change the way they work due to a string of ransomware attacks on Optum and United Health Care.

“This is an important development for every health care entity in the country,” McAneny said.

With Optum being one of their partners, it’s affected a number of services they provide.

“Our ability to check whether or not patients are authorized by their insurance to get…

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This week in the Change Healthcare attack fallout: 10 standout quotes

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Dave P. has worked in journalism, marketing and public relations for more than 30 years, frequently concentrating on hospitals, healthcare technology and Catholic communications. He has also specialized in fundraising communications, ghostwriting for CEOs of local, national and global charities, nonprofits and foundations.

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