FOLLOWING NATIONWIDE HEALTHCARE CYBERATTACK, SCHUMER ANNOUNCES HHS HEEDING HIS CALLS TO OPEN ACCELERATED PAYMENTS TO HARD HIT UPSTATE NY HEALTHCARE PROVIDERS; SCHUMER SAYS FEDS MUST KEEP GOING, CUT THROUGH RED TAPE, AND GET ROLLOUT RIGHT AND CANNOT REST UNTIL ALL HEALTHCARE PROVIDERS GET THE HELP THEY NEED TO RECOVER FROM IMPACTS OF CYBER ATTACK
A Massive Cyberattack Last Week Against Change Healthcare Downed A Vital Network For Hospitals & Pharmacies– Impacting Healthcare Providers Across Upstate NY Unable To Be Paid And Process Insurance Claims, Which If It Continues, Patient Care Could Be Reduced
Schumer Wrote To CMS Last Week And Traveled To Impacted Hospitals Across Upstate NY Yesterday To Push Feds To Get Hospitals The Relief They Need From Delayed Payments, Cut Through Red Tape To Get $$ To Upstate NY Healthcare Providers And Minimize Cash Flow Interruptions – Now HHS Has Said They Will Heed His Calls To Open Accelerated Payments To Healthcare Providers
Schumer Says Accelerated Payments For Healthcare Providers Is A Major Step Forward, But Work Is Not Done Until Every Hospital, Doctor and Pharmacy Has Support They Need to Stay Afloat
Schumer: We Can’t Let A Computer Hack Crash Payments For Our Upstate Healthcare Systems, Feds Must Provide Relief To NY Hospitals ASAP
Following the Change Healthcare cyberattack that impacting healthcare providers across Upstate NY, U.S. Senate Majority Leader Charles E. Schumer today doubled down on his calls for the feds to get all hands on deck to help impacted healthcare providers across Upstate NY get the relief they need from delayed payments as a result of this vicious ransomware attack. Schumer explained how right now Upstate NY healthcare providers are struggling to get paid, process insurance claims, with some seeing millions lost every day as result of this breach. The senator said if this cash-flow interruption continues it could lead to major issues, such as layoffs or even reductions in care, at healthcare providers that provide critical services to communities across Upstate NY.
First, Schumer announced, after calling on the head of the Centers for Medicare and Medicaid Services (CMS) last week and launching an all-out push traveling to impacted hospitals across Upstate NY, CMS has heeded his calls to begin opening up accelerated payments, like those issued during the COVID-19 pandemic. Schumer said he was pleased with CMS’ decision today to open up these payments, but the work is far from over and he will keep pushing CMS until all providers get the funding and loans they need to stay afloat. Schumer said CMS must continue to take swift action to cut through the bureaucratic red tape to streamline claims so healthcare providers and hospitals across Upstate NY can get the relief and financial support they need now, especially for our rural and smaller hospitals, which already operate on tight budgets and are especially sensitive to disruptions in cash flow. Second, Schumer said it is imperative federal law enforcements make this case a top priority, as it is a calculated attack on our nation’s critical healthcare system, and we must hold those responsible accountable for their actions.
“Our local hospitals provide essential quality patient care to our communities across Upstate NY, but this latest vicious cyberattack has blocked many healthcare providers from getting paid and processing insurance claims. If this continues it can lead to layoffs or even reductions in care. The delay in payments is costing healthcare providers across Upstate NY millions for every single week this continues. I am proud to announce that after traveling to impacted hospitals across the state to ramp up pressure on the feds that CMS has heeded my calls to begin to open accelerated payments to impacted hospitals, this is a critical first step that will help provide relief to many of our hospitals, just as they did during COVID. But the work is far from over, we need to make sure CMS gets this right and continues to cut through the red tape to support impacted healthcare providers and ensure our hard-hit areas like Upstate NY have the resources they need to bounce back quickly,” said Senator Schumer. “We can’t let hackers risk the financial stability of healthcare providers and even critical care to patients across the Empire State. CMS must act now to help our Upstate hospitals and I will keep fighting to ensure our residents continue to receive the high-quality care they deserve.”
Schumer said that the Advanced and Accelerated Payment program was a core part of keeping hospitals afloat during COVID, with roughly $100 billion loaned to hospitals as they had to shut down all non-emergency services. The program is a key tool CMS can use to respond to hospital crises. HHS announced earlier today that it would begin heeding Schumer’s calls and taking immediate steps to help impacted healthcare providers, including opening up the availability of accelerated payments. Schumer said this is an encouraging step, but the work cannot stop until all affected providers are provided with sufficient financial stability to weather this storm and continue serving their patients.
In addition, Schumer said it is imperative the federal law enforcement hold perpetrators accountable for this vicious attack and he has also asked the FBI to make this case a top priority. Schumer explained that hackers are known to target vulnerable critical infrastructure like the health care system to maximize the damage caused by their cyberattacks. The senator explained when hospitals are unable to process claims, bill patients, and receive payments, their operations are severely impacted because they don’t have the revenue to operate at full capacity.
Schumer said unlocking these payments would get cash flowing immediately back to these and other hospitals, addressing the current adverse impact on their cash flow and safeguarding patient care, which is why he’s calling on CMS to take all possible measures to provide relief to hospitals and healthcare providers who have been impacted by the Change Healthcare cyberattack.
Schumer was a key architect of using the Advanced and Accelerated Payment program during the height of the pandemic, which brought in billions across the country when they had to shut down all non-emergency lines of care. Schumer also led the passage of the American Rescue Plan, which secured historic investments in New York hospitals to provide the supplies, emergency response, testing, and public health workforce to stop the spread of COVID-19. In 2022, Schumer also secured a first-ever agreement from FEMA that creates a pathway for reimbursement on previously rejected expenses incurred by hospitals in the early days of the COVID-19 pandemic, unlocking hundreds of million for New York’s hospitals, which otherwise would have been shouldered by the hospitals amidst the ongoing public health emergency.
A copy of Schumer’s letter to the head of the U.S. Department of Health and Human Services can be found below:
Dear Secretary Becerra:
I write with an urgent request following the massive cyberattack last week targeting Change Healthcare, subsidiary of UnitedHealth Group, that has severely impacted operations at pharmacies, hospitals, and healthcare providers throughout New York State and across the country. The cyberattack resulted in a widespread network interruption, disrupting insurance claims and payment processes nationwide, with Change Healthcare suspending more than 100 services as it works to identify system vulnerabilities and recover user information.
Across New York State, healthcare providers that rely on the services of Change Healthcare are facing acute financial and operational challenges that have lasted more than a week and show no sign of resolution. As a consequence of the termination of Change Healthcare’s systems, hospitals, pharmacies, and healthcare providers are facing an immediate – and rapidly intensifying – adverse impact on their cash flow and, ultimately, on their financial solvency. While Change Healthcare remains offline, impacted healthcare institutions and providers will remain hamstrung and are unable to complete the necessary tasks to deliver care. Patients are unable to receive the eligibility checks needed to determine if their insurance will cover a prescribed treatment, or even get their needed medications filled at the local pharmacy. Hospitals are struggling to process claims, bill patients, and receive electronic payments, leaving them financially vulnerable with no anticipated timeline for resolution. Many hospitals are approaching a financial cliff where they will no longer be able to rely on their cash on hand.
I urge that the Centers for Medicare & Medicaid Services (CMS) to immediately make Accelerated and Advanced Payments available to the hospitals, pharmacies, and relevant providers who have been impacted by the Change Healthcare cyberattack. In addition, CMS should also direct Medicare Administrative Contractors (MACs) to use a streamlined and efficient process to ensure claims processing and payments resume in a timely manner. The longer this disruption persists, the more difficult it will be for hospitals to continue to provide comprehensive healthcare services to patients.
The attack on Change Healthcare, one of America’s largest healthcare companies, underscores the importance of robust cybersecurity measures in safeguarding sensitive patient information and the need to address vulnerabilities promptly. Once again, I urge CMS to take immediate action to help minimize the cascading consequences of this attack and ensure the continued delivery of lifesaving patient care services in communities across New York State.
Thank you for your attention to this important matter.
Sincerely,
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