Congress rails against UnitedHealth Group after ransomware attack | CyberScoop<\/title> <meta name=\"description\" content=\"House lawmakers argue that growing consolidation in the health care sector has created vulnerabilities to cyberattacks.\"> <link rel=\"canonical\" href=\"https:\/\/cyberscoop.com\/change-healthcare-unitedhealth-ransomware-hearing\/\"> <meta property=\"og:locale\" content=\"en_US\"> <meta property=\"og:type\" content=\"article\"> <meta property=\"og:title\" content=\"Congress rails against UnitedHealth Group after ransomware attack\"> <meta property=\"og:description\" content=\"House lawmakers argue that growing consolidation in the health care sector has created vulnerabilities to cyberattacks.\"> <meta property=\"og:url\" content=\"https:\/\/cyberscoop.com\/change-healthcare-unitedhealth-ransomware-hearing\/\"> <meta property=\"og:site_name\" content=\"CyberScoop\"> <meta property=\"article:published_time\" content=\"2024-04-16T20:18:19+00:00\"> <meta 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name=\"msapplication-TileImage\" content=\"https:\/\/cyberscoop.com\/wp-content\/uploads\/sites\/3\/2023\/01\/cropped-cs_favicon-2.png?w=270\"> <\/head><body class=\"post-template-default single single-post postid-80148 single-format-standard\" id=\"readabilityBody\"> <a href=\"https:\/\/cyberscoop.com\/change-healthcare-unitedhealth-ransomware-hearing\/#main\" class=\"skip-to-content-link visually-hidden-focusable\">Skip to main content<\/a> <\/p>\n<div class=\"ad ad--top ad--top-desktop\">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<p> <main id=\"main\" role=\"main\" tabindex=\"-1\"> <\/p>\n<div class=\"ad ad--top ad--top-mobile\">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<section id=\"stickybar\" class=\"stickybar 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=\"25.281090289608\">\n<div class=\"single-article__header-content\" readability=\"29.159482758621\">\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> House lawmakers argue that growing consolidation in the health care sector has created vulnerabilities to cyberattacks. <\/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\/04\/congress-rails-against-unitedhealth-group-after-ransomware-attack.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\/04\/congress-rails-against-unitedhealth-group-after-ransomware-attack-2.jpg 1920w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2024\/04\/congress-rails-against-unitedhealth-group-after-ransomware-attack-2.jpg?resize=300,200 300w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2024\/04\/congress-rails-against-unitedhealth-group-after-ransomware-attack-2.jpg?resize=768,512 768w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2024\/04\/congress-rails-against-unitedhealth-group-after-ransomware-attack-2.jpg?resize=1024,683 1024w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2024\/04\/congress-rails-against-unitedhealth-group-after-ransomware-attack-2.jpg?resize=1536,1024 1536w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2024\/04\/congress-rails-against-unitedhealth-group-after-ransomware-attack-2.jpg?resize=600,400 600w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2024\/04\/congress-rails-against-unitedhealth-group-after-ransomware-attack-2.jpg?resize=252,168 252w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2024\/04\/congress-rails-against-unitedhealth-group-after-ransomware-attack-2.jpg?resize=506,337 506w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2024\/04\/congress-rails-against-unitedhealth-group-after-ransomware-attack-2.jpg?resize=1013,675 1013w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2024\/04\/congress-rails-against-unitedhealth-group-after-ransomware-attack-2.jpg?resize=1265,843 1265w\" sizes=\"(max-width: 1013px) 100vw, 1013px\"><figcaption> WASHINGTON, DC – MARCH 23: Representative Cathy McMorris Rodgers (R-WA), chair of the House Energy and Commerce Committee speaks during the hearing with TikTok CEO Shou Zi Chew before the House Energy and Commerce Committee in the Rayburn House Office Building on Capitol Hill on March 23, 2023 in Washington, DC. (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=\"52.510204081633\"><body readability=\"106.60063391442\"><\/p>\n<p>House lawmakers on Tuesday sharply criticized the health care giant UnitedHealth Group for the company\u2019s role in and response to a ransomware attack on its subsidiary Change Healthcare that crippled parts of the U.S. health care system. <\/p>\n<p>Since the Feb. 21 ransomware attack \u2014 arguably the most consequential cyberattack on critical infrastructure since the Colonial Pipeline attack three years ago \u2014 UnitedHealth Group has been under scrutiny for both its acquisition of Change Healthcare as well as what members consider to be its poor response to the incident. The Department of Health and Human Services <a href=\"https:\/\/www.hhs.gov\/about\/news\/2024\/03\/13\/hhs-office-civil-rights-issues-letter-opens-investigation-change-healthcare-cyberattack.html\">announced an investigation<\/a> into whether the payment processor and its parent company were in compliance with federal health data privacy laws.<\/p>\n<p>Though common in a health care industry rife with vertical integration, the 2022 merger of UnitedHealth and Change Healthcare \u2014 which was opposed by the Department of Justice at the time \u2014 amounted to a national security risk, subcommittee ranking member Anna Eshoo said during a Tuesday hearing before the Energy and Commerce health subcommittee. The California Democrat cited Change Healthcare\u2019s massive network, which processes around 15 billion medical claims \u2014 \u201cthat\u2019s billion with a \u2018b\u2019\u201d \u2014 while encompassing around \u201c900,000 physicians, 118,000 dentists, 33,000 pharmacies, 5500 hospital hospitals and 600 labs.\u201d<\/p>\n<p>\u201cThe attack shows how UnitedHealth\u2019s anti-competitive practices present a national security risk because its operations now extend through every point of our health care system,\u201d Eshoo said. \u201cThe cyberattack laid bare the vulnerability of our nation\u2019s health care infrastructure.\u201d<\/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>UnitedHealth Group did not make anyone available for the hearing despite the subcommittee\u2019s request, according to committee Chair Cathy McMorris Rodgers, R-Wash. Though Eshoo later said that CEO Andrew Witty had agreed to \u201ccome in,\u201d his absence was notable on a day in which the company said during an earnings call that the ransomware attack caused <a href=\"https:\/\/therecord.media\/ransomware-unitedhealth-costs-billions-still-climbing\">$872 million in losses<\/a>, with the expectation that it may surpass $1 billion. UnitedHealth\u2019s stock <a href=\"https:\/\/www.wsj.com\/business\/earnings\/unitedhealth-swings-to-1q-loss-on-cyberattack-related-costs-4d0a2497\">jumped over 6%<\/a> following the earnings release, though its shares had <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2024-04-16\/unitedhealth-beats-profit-estimates-despite-hack-impact\">fallen 15% in 2024<\/a> as of Monday.<\/p>\n<p>Rep. Buddy Carter, R-Ga., meanwhile, said during Tuesday\u2019s hearing that the Federal Trade Commission \u201cfailed the American people by allowing this vertical integration to happen. It needs to be busted up.\u201d<\/p>\n<p>John Riggi, national adviser for cybersecurity and risk at the American Hospital Association, said hospitals may not have even realized that they were reliant on Change Healthcare.<\/p>\n<p>Hospitals may have had a business relationship with a company, not knowing that that relationship exposed them to Change. Once the breach occurred, they discovered \u201cthat entity used Change as the clearinghouse for that consolidation of services, and our interconnectivity resulted in this widespread impact,\u201d Riggi said. <\/p>\n<p>Greg Garcia, executive director for cybersecurity with the Healthcare Sector Coordinating Council, said that his organization does not hold a position on the Change Healthcare merger, but believes that \u201call future such mergers and acquisitions need to be considered \u2026 on whether that consolidation would result in higher cyber risk.\u201d<\/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>Garcia also said that the council is mapping out the sector to understand the systemic risk in order to get a better understanding of the dependencies.<\/p>\n<p>Sen. Mark Warner, D-Va., has <a href=\"https:\/\/cyberscoop.com\/cybersecurity-minimum-standards-change-healthcare-mark-warner\/\">proposed a bill<\/a> that would allow health care providers who are victims of cyberattacks accelerated financial support from the federal government, as long as they meet minimum cybersecurity standards.<\/p>\n<p>Health care groups have <a href=\"https:\/\/cyberscoop.com\/health-care-groups-resist-cybersecurity-rules-in-wake-of-landmark-breach\/\">pushed against<\/a> this idea. The American Hospital Association wrote a letter to Sen. Ron Wyden, D-Ore., who has <a href=\"https:\/\/www.wyden.senate.gov\/news\/press-releases\/wyden-statement-on-the-united-health-group-hack\">advocated for such standards<\/a>, saying that they \u201ccannot support proposals for mandatory cybersecurity requirements.\u201d<\/p>\n<p>Dr. Adam Bruggeman, an orthopedic surgeon at the Texas Spine Center that was impacted by the breach, said that UnitedHealth has not provided any information relating to the scope of the data stolen and what health information is compromised. In fact, Bruggeman said that he was not aware that data stolen from Change Healthcare was for sale on the dark web until Monday, when he read it in the news.<\/p>\n<p>CyberScoop reported on April 9 that operators of Ransomhub, a site on the dark web that auctions stolen data, claimed they were in possession of over <a href=\"https:\/\/cyberscoop.com\/extortion-group-threatens-to-sell-change-healthcare-data\/\">4 terabytes of data<\/a> from the ransomware attack.<\/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>Bruggeman also noted that physicians have little recourse against software vendors because terms of service typically limit liability dramatically. His medical records vendor, for example, caps liability at $10,000 \u2014 the equivalent of three months of software fees.<\/p>\n<p>\u201cThat number for my practice has the potential to run into the hundreds of thousands of dollars to recover that I would be responsible for, even though it was not my breach,\u201d he said.<\/p>\n<p><\/body> <\/p>\n<footer class=\"single-article__footer\" readability=\"1.4838709677419\">\n<div class=\"author-card\" readability=\"9\">\n<div class=\"author-card__avatar\">\n<figure class=\"author-card__image-wrap\"> <img data-recalc-dims=\"1\" decoding=\"async\" class=\"author-card__image\" src=\"https:\/\/i0.wp.com\/ddi.mohflo.net\/wp-content\/uploads\/2024\/04\/congress-rails-against-unitedhealth-group-after-ransomware-attack-1.jpg?w=640&ssl=1\" alt=\"Christian Vasquez\"> <\/figure>\n<\/p><\/div>\n<p><h4 class=\"author-card__name\">Written by Christian Vasquez<\/h4>\n<p> Christian covers industrial cybersecurity for CyberScoop News. He previously wrote for E&E News at POLITICO covering cybersecurity in the energy sector. 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{"id":3110,"date":"2024-04-16T15:18:19","date_gmt":"2024-04-16T20:18:19","guid":{"rendered":"https:\/\/cyberscoop.com\/?p=80148"},"modified":"2024-04-16T15:18:19","modified_gmt":"2024-04-16T20:18:19","slug":"congress-rails-against-unitedhealth-group-after-ransomware-attack","status":"publish","type":"post","link":"https:\/\/ddi.mohflo.net\/index.php\/2024\/04\/16\/congress-rails-against-unitedhealth-group-after-ransomware-attack\/","title":{"rendered":"Congress rails against UnitedHealth Group after ransomware attack"},"content":{"rendered":"