Health care groups resist cybersecurity rules in wake of landmark breach | CyberScoop<\/title> <meta name=\"description\" content=\"A ransomware attack on a payment processor has crippled the U.S. health care system, creating new momentum for cybersecurity regulations.\"> <link rel=\"canonical\" href=\"https:\/\/cyberscoop.com\/health-care-groups-resist-cybersecurity-rules-in-wake-of-landmark-breach\/\"> <meta property=\"og:locale\" content=\"en_US\"> <meta property=\"og:type\" content=\"article\"> <meta property=\"og:title\" content=\"Health care groups resist cybersecurity rules in wake of landmark breach\"> <meta property=\"og:description\" content=\"A ransomware attack on a payment processor has crippled the U.S. health care system, creating new momentum for cybersecurity regulations.\"> <meta property=\"og:url\" content=\"https:\/\/cyberscoop.com\/health-care-groups-resist-cybersecurity-rules-in-wake-of-landmark-breach\/\"> <meta property=\"og:site_name\" content=\"CyberScoop\"> 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stickybar--newsletter js-stickybar\" readability=\"0.82\"> <button class=\"stickybar__close js-stickybar-close\" aria-controls=\"stickybar\"> <svg class=\"icon icon--close\" width=\"21\" height=\"22\" viewBox=\"0 0 21 22\" fill=\"none\"><path d=\"m.822.518-.805.805L9.695 11 .017 20.678l.805.805 9.678-9.678 9.677 9.678.806-.805L11.305 11l9.678-9.677-.806-.805-9.677 9.677L.822.518Z\" fill=\"currentColor\" \/><\/svg> <span class=\"visually-hidden\">Close<\/span> <\/button> <\/section>\n<article class=\"single-article content\">\n<div class=\"single-article__container js-single-article-content\">\n<header class=\"single-article__header \" readability=\"25.370221327968\">\n<div class=\"single-article__header-content\" readability=\"31.037735849057\">\n<ul class=\"single-article__eyebrow\">\n<li class=\"single-article__category\"> <a class=\"single-article__category-link\" href=\"https:\/\/cyberscoop.com\/news\/government\/\"> <span>Government<\/span> <\/a> <\/li>\n<\/ul>\n<p> A ransomware attack on a payment processor has crippled the U.S. health care system, creating new momentum for cybersecurity regulations. <\/p>\n<\/p><\/div>\n<div class=\"single-article__cover-wrap\">\n<figure class=\"single-article__cover\"> <img data-recalc-dims=\"1\" fetchpriority=\"high\" width=\"640\" height=\"426\" src=\"https:\/\/i0.wp.com\/ddi.mohflo.net\/wp-content\/uploads\/2024\/03\/health-care-groups-resist-cybersecurity-rules-in-wake-of-landmark-breach.jpg?resize=640%2C426&ssl=1\" class=\"single-article__cover-image wp-post-image\" alt decoding=\"async\" fetchpriority=\"high\" srcset=\"https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2024\/03\/health-care-groups-resist-cybersecurity-rules-in-wake-of-landmark-breach-1.jpg 1920w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2024\/03\/health-care-groups-resist-cybersecurity-rules-in-wake-of-landmark-breach-1.jpg?resize=300,200 300w, 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https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2024\/03\/health-care-groups-resist-cybersecurity-rules-in-wake-of-landmark-breach-1.jpg?resize=1013,675 1013w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2024\/03\/health-care-groups-resist-cybersecurity-rules-in-wake-of-landmark-breach-1.jpg?resize=1265,843 1265w\" sizes=\"(max-width: 1013px) 100vw, 1013px\"><figcaption> Sen. Ron Wyden, D-Ore., questions leaders from the U.S. intelligence community during an open hearing in the Hart Senate Office Building on Capitol Hill on March 11, 2024 in Washington, D.C. (Photo by Chip Somodevilla\/Getty Images) <\/figcaption><\/figure>\n<\/p><\/div>\n<\/header>\n<div class=\"single-article__content\">\n<div class=\"single-article__content-inner has-drop-cap\"> <html readability=\"83.480058058816\"><body readability=\"167.88636073118\"><\/p>\n<p>A cyberattack on a payment processor that has crippled large parts of the U.S. health care system is inspiring calls in Washington to urgently implement cybersecurity regulations for the sector, setting up a showdown with hospital and health care groups that are stridently arguing against such a move. <\/p>\n<p>\u201cAs these companies have become so large, it is creating a systemic cybersecurity risk,\u201d Sen. Ron Wyden, an Oregon Democrat,<strong> <\/strong>said Thursday during a Senate Finance Committee hearing featuring Health and Human Services Secretary Xavier Becerra, whose agency is responsible for overseeing the health care industry\u2019s digital security standards. <\/p>\n<p>The Feb. 21 <a href=\"https:\/\/cyberscoop.com\/alphv-website-ransomware-attack-change-healthcare\/\">attack on Change Healthcare<\/a>, a firm whose backroom technology touches 1 in 3 American patient records, crippled payment processing for prescriptions and other health services across the country, leaving many <a href=\"https:\/\/www.npr.org\/sections\/health-shots\/2024\/03\/09\/1237038928\/health-industry-ransomware-cyberattack-change-healthcare-optum-uhc-united\">health practices financially strapped<\/a>, some on the brink of ruin.<\/p>\n<p>The incident has reinvigorated conversations among policymakers in Washington about how to improve the health care sector\u2019s security posture. HHS <a href=\"http:\/\/aspr.hhs.gov\/cyber\/Documents\/Health-Care-Sector-Cybersecurity-Dec2023-508.pdf\">has proposed<\/a> a voluntary set of cybersecurity standards and is working to develop mandatory rules, but these are unlikely to come into effect soon. <\/p>\n<div class=\"ad ad--inline_1 \">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<p>Until mandatory rules are in place, industry critics like Wyden want sharper action. \u201cThe next step has got to be fines and accountability for negligent CEOs, which will enable HHS to protect patients and our national security,\u201d he said Thursday. <\/p>\n<p>HHS is working to develop its mandatory cybersecurity rules via the Centers for Medicare and Medicaid Services. An update to the security rules of the Health Insurance Portability and Accountability Act is expected to include cybersecurity requirements. According to a senior administration official speaking on condition of anonymity, the Biden administration plans to roll out a notice of proposed rule-making sometime this month or next that would establish minimum cybersecurity standards for the health care sector.<\/p>\n<p>This push sets the Biden administration on a collision course with the health care industry. <\/p>\n<p>Richard J. Pollack, the head of the American Hospital Association, <a href=\"http:\/\/aha.org\/lettercomment\/2024-03-13-aha-urges-more-congressional-action-help-providers-affected-change-healthcare-cyberattack\">wrote in a letter<\/a> to Wyden and Senate Finance Committee ranking member Sen. Mike Crapo of Idaho, earlier this week that his trade group \u201ccannot support proposals for mandatory cybersecurity requirements being levied on hospitals as if they were at fault for the success of hackers in perpetrating a crime.\u201d <\/p>\n<p>Hospitals and health care entities have invested enormous sums into cybersecurity, Pollack said in his letter. He added that most attacks are carried out via third-party technology or other vendors, and because of that fact it would be unfair to hold cash-strapped hospitals accountable. <\/p>\n<div class=\"ad ad--inline_1 \">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<p>\u201cImposing fines or cutting Medicare payments would diminish hospital resources needed to combat cybercrime and would be counterproductive to our shared goal of preventing cyberattacks,\u201d the letter added. Biden administration budget proposals that tie investment in cybersecurity to mandatory minimum standards are \u201cmisguided, and \u2026 will not improve the overall cybersecurity posture of the health care sector.\u201d<\/p>\n<p>President Joe Biden\u2019s budget released this week <a href=\"http:\/\/statnews.com\/2024\/03\/14\/change-healthcare-cyberattack-hhs-secretary-becerra\/\">called for $1.3 billion<\/a> to support hospitals\u2019 cybersecurity efforts, alongside a proposal to financially penalize hospitals that did not meet requirements, but it is unclear whether Congress will take up that proposal. <\/p>\n<p>A spokesperson for UnitedHealth Group, the parent company of Change Healthcare, did not respond to questions about the company\u2019s position on minimum mandatory cybersecurity standards.<\/p>\n<p>The senior administration official said that while the White House is sensitive to the fact that new cybersecurity standards will impose additional costs on a health care industry that is to a certain extent still recovering from the COVID-19 pandemic, the steps the administration expects the industry to take represent the basics of building more secure digital systems.<\/p>\n<p>The critical nature of the industry \u2014 between the services it provides and the sensitivity of the data it holds \u2014 should create an impetus for companies in the sector to build more secure systems. \u201cThe sector is not able to effectively defend itself,\u201d the official said, adding that a string of recent attacks on the health care industry illustrates the urgency of implementing minimum cybersecurity standards.<\/p>\n<div class=\"ad ad--inline_1 \">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<p>Meanwhile, <a href=\"https:\/\/news.bloomberglaw.com\/antitrust\/states-fill-gaps-in-ftc-crackdown-on-health-care-consolidation\">consolidation within the industry<\/a> means that when a company like Change Healthcare gets hit by ransomware, it knocks out a central player with cascading effects that \u201chave outsize national impact,\u201d the official added.<\/p>\n<p>Sen. Mark Warner, the influential Virginia Democrat who leads the Senate Intelligence Committee, has also called for action, saying <a href=\"https:\/\/www.warner.senate.gov\/public\/index.cfm\/2024\/3\/statement-of-sen-warner-on-change-healthcare-cyberattack\">he plans to introduce legislation<\/a> that would provide accelerated payments to providers and vendors \u201cas long as they meet minimum cybersecurity standards.\u201d<\/p>\n<p>Citing the \u201cunprecedented magnitude of this cyberattack,\u201d <a href=\"https:\/\/www.hhs.gov\/sites\/default\/files\/cyberattack-change-healthcare.pdf\">HHS announced an investigation<\/a> this week into whether a breach of protected health information occurred and whether Change Healthcare and its parent company, UnitedHealth Group, were in compliance with federal health data privacy laws. <a href=\"https:\/\/www.courtlistener.com\/docket\/68316100\/mackey-v-unitedhealth-group-incorporated\/\">Three<\/a> <a href=\"https:\/\/www.courtlistener.com\/docket\/68336630\/medina-v-change-healthcare-inc\/\">federal<\/a> <a href=\"https:\/\/www.courtlistener.com\/docket\/68342678\/groom-v-unitedhealth-group-incorporated\/\">lawsuits<\/a> linked to the breach have also been filed.<\/p>\n<p>Wyden said in a statement to CyberScoop after Thursday\u2019s hearing that it\u2019s \u201cno surprise\u201d the industry opposes mandatory technical standards.<\/p>\n<p>\u201cPrivate-sector opposition to effective cybersecurity rules is the number one reason our critical infrastructure, particularly the health care sector, is so woefully unprepared for even unsophisticated cyberattacks,\u201d Wyden said. <\/p>\n<div class=\"ad ad--inline_1 \">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<p>Experts say applying minimum cybersecurity standards to the health care industry is possible, but complicated. Even as <a href=\"https:\/\/www.hhs.gov\/about\/news\/2023\/12\/06\/hhs-announces-next-steps-ongoing-work-enhance-cybersecurity-health-care-public-health-sectors.html\">attacks on health care facilities have exploded<\/a> in recent years, it can be hard for small and medium-sized health care entities to spend significant sums on cybersecurity. Costs for personnel and equipment, along with day-to-day expenses, can limit investments in cybersecurity.<\/p>\n<p>Beau Woods, a former senior advisor to the Cybersecurity and Infrastructure Security Agency, said there is a tension between health care entities who think addressing cybersecurity would add major burdens and the reality that health care organizations are subject to a huge number of breaches. <\/p>\n<p>Woods, who co-founded <a href=\"https:\/\/iamthecavalry.org\/\">I Am the Cavalry<\/a>, a volunteer group of cybersecurity experts who help health care entities, cautioned that that resource constraint does not mean that \u201cthe status quo is acceptable.\u201d<\/p>\n<p>The ongoing conversation about standards and mandates has evolved in recent years, said Dr. Toby Gouker, the chief security officer for government health with First Advisory Health, a health industry security advisory firm. Any calls for mandatory standards must be matched with funding, he said.<\/p>\n<p>\u201cThere will be an extreme level of resistance on the part of health care, if mandates come out without some kind of financial incentives, as well,\u201d Gouker said.<\/p>\n<div class=\"ad ad--inline_1 \">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<p>Some have argued for <a href=\"https:\/\/www.statnews.com\/2024\/03\/14\/change-cyberattack-response-regulation-needed\/\">a new regulatory entity<\/a> to enforce standards for health technology stakeholders or financial support to invest in cybersecurity personnel and technology. <\/p>\n<p>A former congressional staffer familiar with previous cybersecurity rule-making processes told CyberScoop that mandates will be more likely to be accepted if they\u2019re outcome-focused, with the ability to verify with third parties that standards are being met.<\/p>\n<p>But, the former staffer said, given that it\u2019s an election year, don\u2019t expect anything to happen soon.<\/p>\n<p>\u201cI think industry is just going to just say \u2018let\u2019s ride this out the rest of the year and see where we are next year,’\u201d the staffer said. <\/p>\n<p><\/body> <\/p>\n<footer class=\"single-article__footer\" readability=\"0.53535353535354\">\n<div class=\"author-card\" readability=\"7\">\n<p><h4 class=\"author-card__name\">Written by AJ Vicens and Elias Groll<\/h4>\n<\/p><\/div>\n<div class=\"single-article__tags-container\">\n<h4 class=\"single-article__tags-title\">In This Story<\/h4>\n<\/p><\/div>\n<\/footer>\n<p> <\/html><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div class=\"single-article__ads js-single-article-sidebar\">\n<div class=\"ad ad--sidebar js-single-article-sidebar-5 ad--rightrail_1 \">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<div class=\"ad ad--sidebar js-single-article-sidebar-4 ad--rightrail_2 \">\n<div 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{"id":2727,"date":"2024-03-15T16:41:32","date_gmt":"2024-03-15T21:41:32","guid":{"rendered":"https:\/\/cyberscoop.com\/?p=79757"},"modified":"2024-03-15T16:41:32","modified_gmt":"2024-03-15T21:41:32","slug":"health-care-groups-resist-cybersecurity-rules-in-wake-of-landmark-breach","status":"publish","type":"post","link":"https:\/\/ddi.mohflo.net\/index.php\/2024\/03\/15\/health-care-groups-resist-cybersecurity-rules-in-wake-of-landmark-breach\/","title":{"rendered":"Health care groups resist cybersecurity rules in wake of landmark breach"},"content":{"rendered":"