A major pharmacy group and over 30 providers have joined a class-action lawsuit against Change Healthcare due to a cyberattack that many reported greatly affected the healthcare industry.
The National Community Pharmacists Association (NCPA) spearheads the lawsuit against UnitedHealth Group, Optum, and Change Healthcare. The objective is reparations for the social and economic disruptions caused by the attack. NCPA and provider plaintiffs argue that Change Healthcare failed to employ adequate care and should have taken reasonable precautions to protect against such a breach.
The clients were deceived into believing that Change Healthcare had strong network security. Once the attack occurred and caused considerable monetary losses, no compensation was given for services as the clients struggled to decipher a damaged system.
According to a press release issued by NCPA, led by its CEO, Douglas Hoey, the organization opposed UnitedHealth’s acquisition of Change Healthcare from the outset. Hoey added that the breach affirms their adage that “bigger is not better.”
“UnitedHealth Group and its subsidiaries must take responsibility for their unsafe environment, poor customer service, and failure to compensate our members for their financial loss,” Hoey said. “Companies are so large that they cannot protect every entrance, and they often cannot act swiftly. The fact that issues remain unsolved is a testament to the cost our members have incurred in both money and time.”
When the breach was discovered, Change Healthcare was isolated from interacting with clients and the entire UnitedHealth Group to decrease the spread. The providers and pharmacies contend in the lawsuit that UHG did this without providing them with a viable and workable plan B, essentially shutting off claims processing and reimbursement.
Since the breach, UnitedHealth has put up $9 billion in loans and interest-free payments to providers, as disclosed in the second quarter.
