Federal regulators have allowed UnitedHealth Group (NYSE:UNH) to notify people affected by the ransomware attack on its Change Healthcare unit earlier this year. This has spared U.S. hospitals and healthcare providers, whose patients were affected by the hack, from the time-consuming task of informing these patients.
U.S. hospitals and healthcare providers had been urging the U.S. Department of Health and Human Services for months to ask UNH and Change to notify the patients affected by the data breach, stating that they lacked the money and information to properly inform patients. Finally, on May 31, the U.S. Department of Health agreed to make an exception to the federal Health Insurance Portability and Accountability Act, which generally requires healthcare providers to notify victims.
The Cyberattack on UNH’s Change Healthcare
Earlier this year, UNH’s subsidiary, Change Healthcare, suffered a cyberattack that resulted in the system being down for seven days. This cyberattack hit hard, especially affecting individuals and small healthcare providers by putting critical patient care at risk due to financial strains.
When UnitedHealth discovered the data breach, it moved quickly, isolating several key systems and disconnecting them from the broader network. According to reports, UNH paid nearly $22 million to the hackers in March. Before the hack, Change Healthcare oversaw approximately 15 billion transactions annually.
The company’s CEO, Andrew Witty, stated in a Congressional hearing last month that the cyberattack likely impacted the personal and health data of 33% of the U.S. population.
Is UNH a Good Buy Right Now?
Analysts remain bullish about UNH stock, with a Strong Buy consensus rating based on 18 Buys and three Holds. Year-to-date, UNH has declined by around 5.4%, and the average UNH price target of $565.74 implies an upside potential of 14% from current levels.
