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UnitedHealthcare Security Incident

Q2 2024 578 days ago Resolved

Incident Overview

Situation Description

The health insurance industry experienced mixed financial results in Q2 2024, with rising profit margins but lower than the previous year, alongside increased loss ratios and a decline in Medicaid membership due to redeterminations, while UnitedHealthcare recognized significant impacts from a cyberattack.

Event Types

Supply Chain Compromise Malware / Destructive Attack

Industry Sector

Healthcare

Geographic Scope

nan

Impact Analysis

Event Types (2 identified)

Supply Chain Compromise Malware / Destructive Attack

Financial Impact

$0 USD

Records Affected

Primary Impacts

Financial Loss Operational Disruption

Key Decisions Made

UnitedHealthcare recognized costs related to the Change Healthcare cyber-attack, estimated at $0.92 per share in Q2 2024.; UnitedHealthcare's medical care ratio reflected a 40 basis point increase due to the suspension of some care management activities because of the Change Healthcare cyberattack.; Molina's Medicaid business had a high MCR, partially driven by higher acuity of remaining members after redeterminations.

Technical Analysis

Attack Method

Unknown

Vulnerability / Tool

Change Healthcare

Additional Information

Welcome to the latest edition of our health insurer financial update, Pulse. We aim to keep you informed about key market trends and dynamics that impact health insurer financial results and profitability. Earlier this year we released Q1 financials and in July, we released our Summer 2024 edition , a comprehensive report covering 2023 reported statutory financials. This latest update contains Q2 2024 net income trends for insured business, earnings highlights, commercial and Medicaid membership (including redeterminations), and market capitalization highlights. Six key trends in health insurance in Q2 2024 Average profit margins increased but are below Q2 2023 levels. The average profit margin rose by 1.4% from Q1 2024, mainly due to UnitedHealthcares return to profitability, but is still 0.6% lower than reported in Q2 2023. Average loss ratios increase but CVS Health (Aetna) shows improvement. Average loss ratios increased from Q1 2024 due to higher acuity in the Medicaid business and are 1.6% higher than in Q2 2023. CVS Health (Aetna) reported a 0.8% loss ratio improvement compared to Q1 2024. Lower operating expense ratios contribute to profit margins. Medicaid membership continues to decline and remaining members have higher acuity after redeterminations. Medicaid membership declined further due to eligibility redeterminations, with some members moving to commercial products. By the end of Q2 2024, many insurers believed they were nearing the end of the redetermination process. They also indicated that remaining Medicaid membership has higher acuity than those who left in the redetermination process. Market capitalization reduction for Molina and CVS Health (Aetna). As of June 28, 2024, both Molina and CVS Health (Aetna) have lost more than a quarter of their market capitalization since the end of Q1 2024. UnitedHealthcare recognizes impact from Change Healthcare cyberattack. The Change Healthcare cyberattack is estimated to have cost UnitedHealthcare...

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Quick Facts

Company:: UnitedHealthcare
Date:: Q2 2024
Status:: Resolved
Decision Maker:: nan
Position:: nan
Published:: Summer 2024

Source Information

Original Query

UnitedHealth Group market share and client retention rates after Change Healthcare attack

View Original Source

Timeline

Information Published

Summer 2024

Incident Occurred

Q2 2024 (578 days ago)

Status: Resolved

Estimated resolution based on age

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