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Major Breach at Medical Billing Giant Results in The Data Leak of 5.4 Million Users

 

Episource, the medical billing behemoth, has warned millions of Americans that a hack earlier this year resulted in the theft of their private and medical data. According to a listing with the United States Department of Health and Human Services, one of the year's largest healthcare breaches affects around 5.4 million people. 

Episource, which is owned by Optum, a subsidiary of the largest health insurance company UnitedHealth Group, offers billing adjustment services to doctors, hospitals, and other healthcare-related organisations. In order to process claims through their health insurance, the company handles a lot of patients' personal and medical data.

In notices filed in California and Vermont on Friday last week, Episource stated that a criminal was able to "see and take copies" of patient and member data from its systems during the weeklong breach that ended on February 6. 

Private information stolen includes names, postal and email addresses, and phone numbers, as well as protected health data such as medical record numbers and information on doctors, diagnoses, drugs, test results, imaging, care, and other treatments. The stolen data also includes health insurance information, such as health plans, policies, and member numbers. 

Episource would not elaborate on the nature of the issue, but Sharp Healthcare, one of the organisations that worked with Episource and was impacted by the intrusion, notified its clients that the Episource hack was triggered by ransomware. This is the latest cybersecurity incident to affect UnitedHealth in recent years.

Change Healthcare, one of the top companies in the U.S. healthcare industry, which conducts billions of health transactions each year, was attacked by a ransomware gang in February 2024, resulting in the theft of personal and health information for over 190 million Americans. The cyberattack resulted in the largest healthcare data breach in US history. Several months later, UnitedHealth's Optum division exposed to the internet an internal chatbot used by staff to enquire about claims.