UnitedHealth Group expects the cyberattack on its Change Healthcare unit to cost up to $1.6 billion this year but maintains its 2024 earnings forecast, indicating a less severe impact than anticipated.

Despite disruptions, the company exceeded first-quarter earnings estimates due to lower medical costs. The cyberattack disrupted payments to healthcare facilities nationwide for a month, particularly affecting community health centers. UnitedHealth relaxed prior authorization processes for some claims temporarily but reinstated them later. The company has provided over $6 billion in advance funding to affected healthcare providers. While some services have resumed, many are still recovering. Change's pharmacy claims and payment management businesses are at 80% capacity, with plans for further recovery. UnitedHealth reaffirmed its 2024 profit forecast despite expecting a $1.15 to $1.35 per share impact from the cyberattack. Analysts are relieved at the company's resilience. UnitedHealth will disclose the extent of breached personal data within 60 days as required by law.