UnitedHealth sticks to 2024 outlook despite strong quarter with costs from massive cyberattack high

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UnitedHealth topped second-quarter forecasts but remains cautious about the year as it continues to eat costs from a massive cyberattack and deal with rising medical expenses

UnitedHealth topped second-quarter forecasts but remains cautious about the year as it continues to eat costs from a massive cyberattack and deals with rising medical expenses.

The health care giant on Tuesday said it was sticking with an earnings forecast for 2024 it first laid out last fall that includes some costs from the attack earlier this year on its Change Healthcare business.

Hackers gained access in February to Change's system and unleashed a ransomware attack that encrypted and froze large parts of it. Change provides technology used to submit insurance claims, and the attack disrupted payments and claims processing around country.

UnitedHealth booked $1.1 billion in total costs from the cyberattack in the second quarter.

The company said it has restored most of the Change services affected by the attack. Estimated direct costs for its response to the attack have climbed as it started notifying customers who were affected and continued to provide financial support to care providers.

The company says it has provided more than $9 billion in advance funding and no-interest loans.

UnitedHealth provides health insurance for more than 49 million people in the United States. Its Optum segment also provides care, runs one of the nation’s largest pharmacy benefits management businesses and offers technology services.

In the second quarter, UnitedHealth’s net income slumped 23% to $4.22 billion. It reported adjusted earnings of $6.80 per share on $98.85 billion in total revenue.

Analysts expected earnings of $6.66 per share on $98.73 billion