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              Congressional                                                     ____
          ~ Research Service






The Change Healthcare Cyberattack and

Response Considerations for Policymakers



March 12, 2024


On February 21, 2024, UnitedHealth Group Incorporated disclosed that one of its companies' units-
Change Healthcare-was experiencing a cyberattack. The BlackCat/ALPHV ransomware group-a
Russia-linked cybercrime organization-claimed responsibility. Repercussions from this cyberattack are
reportedly affecting some individuals' ability to access health care services nationwide.


Attack Background

In December 2023, the Department of Justice (DOJ) announced that it disrupted the operations of the
BlackCat/ALPHV/Noberus  ransomware group. The government developed a tool to help victims decrypt
and regain control of their systems-saving them from paying an estimated $68 million in ransom
payments. The Federal Bureau of Investigation (FBI) also disrupted BlackCat's infrastructure by
infiltrating its systems and seizing websites. The Cybersecurity and Infrastructure Security Agency
(CISA) worked with other federal agencies to update a ransomware advisory with technical indicators of
compromise as well as mitigation strategies. Following the FBI's campaign, BlackCat declared that it
would retaliate against the United States by targeting health care providers with ransomware.
In the subsequent two months, BlackCat was able to reconstitute its infrastructure and compromise
Change Healthcare. Change Healthcare facilitates transactions in the health care system (e.g., ensuring
pharmacies receive payment from insurers for medications). BlackCat deployed malware onto Change
Healthcare's system and executed a ransomware attack. Upon discovery, Change Healthcare disconnected
the affected system and took other systems offline to stem the ransomware's spread. The disruption of
these networks has led to a cascade of real-world consequences across the nation, with individuals unable
to leverage their insurance coverage for prescriptions and cash flow issues for pharmacies as payments
were frozen.
This ransomware attack bears similarities to the 2021 attack against Colonial Pipeline. Both attacks began
with ransomware, led the victim to disconnect systems thereby causing operational disruptions, which
resulted in physical consequences.


                                                               Congressional Research Service
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