UnitedHealth pays out $2B in advances to struggling providers hit by cyberattack

Following the Change Healthcare cyberattack, UnitedHealth Group has announced that it has advanced payments to address bottlenecks in the payments system and it will start releasing new medical claims software this week.

UnitedHealth Group has paid more than $2 billion to assist health-care providers affected by the recent cyberattack on its Change Healthcare subsidiary.

“We continue to make significant progress in restoring the services impacted by this cyberattack,” CEO Andrew Witty said on Monday. “We know this has been an enormous challenge for health-care providers, and we encourage any in need to contact us.”

UnitedHealth has advanced the funds through multiple initiatives.

“The company recognizes the high level of fragmentation of the U.S. health system can result in uneven experiences,” it said in a news release. “Therefore, it continues to enhance and expand funding support to make it easier for care providers to access funding help at no cost. To further assist care providers, the company also suspended prior authorizations for most outpatient services and utilization review of inpatient admissions for Medicare Advantage plans.”

Advances will not need to be repaid until claims flows return to normal. Federal agencies such as the Centers for Medicare & Medicaid Services have introduced additional options to ensure that states and other stakeholders can make interim payments to providers.

Related: CMS: Emergency funding available to health care providers disrupted by cyberattack

On March 15, the company restored Change Healthcare’s electronic payments platform and is proceeding with payer implementations. On March 7, the company restored 99% of its pharmacy network services and continues to work on remaining issues.

The U.S. Department of Health and Human Services met with health insurers on Monday to encourage other companies to make advance funds available to struggling providers. So far, the cash crunch has not resulted in care access problems, HHS officials said, although the department continues to learn that some small, rural and safety-net providers need financial help.

Getting funding to these groups is key to making sure clinics can keep providing care, HHS said. UnitedHealth Group has been asked to serve as a central clearinghouse for information and support so that providers get connected with resources to prevent cash-flow problems.

Change Healthcare also announced that it will begin releasing medical claims preparation software, which it calls an important step in the resumption of services. The e-prescription software and tools for payment management will be made available to thousands of customers over the next several days. The company expects to have third-party attestations available before services become operational. Following this initial phase, remaining services restoration will continue through ongoing phases of activation until all customers have been connected.

Providers needing financial assistance are encouraged to register for the program at www.optum.com/temporaryfunding to view prepopulated funding assistance levels. The company recommends those needing additional support or help with eligibility to use the temporary funding assistance inquiry form or call (877) 702-3253.