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Thursday, May 2 2024

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UnitedHealth CEO Faces Blistering Questions At Hearings On Change Hack

UnitedHealth Group CEO Andrew Witty faced criticisms from Senate and House committees on Wednesday over his company's cybersecurity that led to the ransomware attack on subsidiary Change Healthcare. He also answered questions about the company's response to the incident that compromised private data for as many as a third of Americans.

UnitedHealth Group CEO Andrew Witty endured withering criticism from lawmakers Wednesday as Congress held a pair of hearings on the Change Healthcare cyberattack and its fallout. The Senate Finance Committee got first crack at the healthcare executive Wednesday morning before Witty headed to the other side of Capitol Hill to testify before a House Energy and Commerce Committee subcommittee in the afternoon. (McAuliff, 5/1)

Hackers breached the computer system of a UnitedHealth Group subsidiary and released ransomware after stealing someone's password, CEO Andrew Witty testified Wednesday on Capitol Hill. The cybercriminals entered through a portal that didn't have multifactor authentication (MFA) enabled. During an hourslong congressional hearing, Witty told lawmakers that the company has not yet determined how many patients and health care professionals were impacted by the cyberattack. (Brooks, 5/1)

UnitedHealth Group CEO Andrew Witty on Wednesday told lawmakers that data from an estimated one-third of Americans could have been compromised in the cyberattack on its subsidiary Change Healthcare, and that the company paid a $22 million ransom to hackers. (Capoot, 5/1)

Witty revealed a lot of new details: Hackers encrypted Change’s systems with ransomware, prompting a total rebuild. They also locked backup filed, delaying restoration. The company paid a $22 million ransom in an attempt to protect patient data that was pilfered by the hackers. (Tarabay, 5/1)

UnitedHealth Group's Andrew Witty became the highest-paid CEO among the major health insurers last year, but his total compensation paled in comparison to Oscar Health CEO Mark Bertolini. Witty's total 2023 compensation was $23.5 million, up 12.8% from a year earlier, driven by gains in stock and option awards. (Berryman, 5/1)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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