Harvard Pilgrim Health Care parent reports over $100 million in losses due to cyber breach
After cyber breach, Point32Health suffers financial losses
The state’s second-largest insurer reported a $102.7 million operating loss for the 6 months ending in June.
By Jessica Bartlett Globe Staff,Updated August 18, 2023, 2:38 p.m.
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Point32Health, the state’s second-largest insurer, reported a $102.7 million operating loss for the 6 months ending in June.
A crippling cyberattack at the state’s second-largest insurer not only interrupted operations for months but also pummeled the insurer’s financials.
For the six months ending in June, Point32Health reported a $102.7 million operating loss on $4.8 billion in revenue. Those results compare with a $25.8 million operating loss on $4.9 billion in revenue in the same period the previous year. The most recent earnings capture nearly the full timespan of the ransomware attack and cybersecurity breach that hamstrung operations at one of Point32′s insurers, Harvard Pilgrim Health Care, from mid-April through much of July.
Scott Walker, chief financial officer at Point32Health, attributed the loss largely to the cyber incident, which he called “transient and one time in nature,” in a statement. He added that the company remained on solid financial footing and that he was confident in its strategic direction.
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Point32Health did not release details of its costs and has never said whether the organization paid the ransom to restore its data. However, it noted that the company did face a financial impact from responding to the incident, restoring operations, and hiring third-party experts.
RELATED: After ransomware attack, state’s second-largest health insurer says patient data stolen
Contributing to higher costs was the interest the insurer said it would pay on claims that had been delayed due to the attack. Patrick Cahill, president of commercial markets for Point32Health, said the company was paying 1.5 percent in interest a month. Claims repayment began in May and, by August, the company had worked through a backlog of over a million transactions.
The insurer may have also paid more in claims than it normally would have because it eliminated prior authorization requests for services from mid-April through late July. That means it likely covered services it might have otherwise denied. A spokesperson said the insurer was still evaluating the impact of that decision.
The cyberattack forced the insurer to take systems associated with Harvard Pilgrim offline for weeks and then reestablish connections with its vendors and partners.
The state’s second-largest insurer reported a $102.7 million operating loss for the 6 months ending in June.
By Jessica Bartlett Globe Staff,Updated August 18, 2023, 2:38 p.m.
7
Point32Health, the state’s second-largest insurer, reported a $102.7 million operating loss for the 6 months ending in June.
A crippling cyberattack at the state’s second-largest insurer not only interrupted operations for months but also pummeled the insurer’s financials.
For the six months ending in June, Point32Health reported a $102.7 million operating loss on $4.8 billion in revenue. Those results compare with a $25.8 million operating loss on $4.9 billion in revenue in the same period the previous year. The most recent earnings capture nearly the full timespan of the ransomware attack and cybersecurity breach that hamstrung operations at one of Point32′s insurers, Harvard Pilgrim Health Care, from mid-April through much of July.
Scott Walker, chief financial officer at Point32Health, attributed the loss largely to the cyber incident, which he called “transient and one time in nature,” in a statement. He added that the company remained on solid financial footing and that he was confident in its strategic direction.
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Point32Health did not release details of its costs and has never said whether the organization paid the ransom to restore its data. However, it noted that the company did face a financial impact from responding to the incident, restoring operations, and hiring third-party experts.
RELATED: After ransomware attack, state’s second-largest health insurer says patient data stolen
Contributing to higher costs was the interest the insurer said it would pay on claims that had been delayed due to the attack. Patrick Cahill, president of commercial markets for Point32Health, said the company was paying 1.5 percent in interest a month. Claims repayment began in May and, by August, the company had worked through a backlog of over a million transactions.
The insurer may have also paid more in claims than it normally would have because it eliminated prior authorization requests for services from mid-April through late July. That means it likely covered services it might have otherwise denied. A spokesperson said the insurer was still evaluating the impact of that decision.
The cyberattack forced the insurer to take systems associated with Harvard Pilgrim offline for weeks and then reestablish connections with its vendors and partners.
