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Magellan Health

Change Healthcare outage

Updated April 1, 2024

On Feb. 21, 2024, Change Healthcare a software and data analytics subsidiary of UnitedHealth Group’s Optum unit, and vendor of Magellan Health (Magellan), experienced a cybersecurity incident that has impacted its network and operations. The cybersecurity incident has created service disruption that has impacted payers, providers and pharmacies nationwide, including Magellan. 

Magellan disconnected system access to and from Change Healthcare on Feb. 21. Magellan’s internal systems were not compromised, but the full scope and extent of the cybersecurity incident on Change Healthcare’s network and operations – and any related impact on data – is not yet known. On Feb. 29, Change Healthcare acknowledged that the cybersecurity incident was perpetuated by a threat actor known as BlackCat/ALPHV.

The health and safety of our members and providers is our top priority. We are continuing to work in collaboration with Change Healthcare to understand the extent of this incident, while working to ensure continuity of care and minimizing the disruption of the outage for our members and providers. We are aware that Change Healthcare’s outage has impacted some services for our providers and members.

The outage has impacted some of Magellan’s services. As such, the following functions are not operational until further notice:

  • Claim submissions to Magellan for providers that have selected Change Healthcare as their clearinghouse.
  • Magellan claims payment to providers via electronic funds transfer (EFT), paper checks and virtual credit cards through ECHO Health, Inc. (ECHO), a Change Healthcare subsidiary.*

Magellan recommends that providers use an alternate clearinghouse, or submit claims via paper/mail, electronic data interchange (EDI), Availity Essentials or MagellanProvider.com to meet timely filing requirements. To enroll in Availity’s clearinghouse, please visit https://marketing.availity.com/Availity-lifeline and/or call Availity Client Services at 1-800-AVAILITY (1-800-282-4548).

Claim payments to providers through ECHO stopped on Feb. 21, 2024.

  • On March 8, 2024, Magellan implemented an interim solution to begin issuing payments via paper checks until EFT is re-established.
  • Checks will be accompanied by a standard, paper explanation of payment (EOP) that will contain all claim detail needed to reconcile payments.
  • Due to the urgency, this EOP will not contain other typical elements, such as appeal language; however, content will be included in the EOP to direct you on how to electronically access required details at https://provider.magellanhealthcare.com/claims-appeals-and-complaints.
  • Paper checks are the only payment method until such time as it is determined that electronic payments can be restored in a secure environment.
  • Magellan will send payments to the financial address that is in your record. To ensure your record reflects your current physical address, sign in at MagellanProvider.com and select Display/Edit Practice Information; from the Provider Data Change Form tab, select Financial Address.
  • We have completed mailing checks for all claims that were processed from Feb. 21 – March 12, 2024. If you have not received your check(s) by the end of April, please confirm your financial address on MagellanProvider.com. If the address listed is not correct, contact your provider service representative.
  • Claims processed after March 13, 2024 are being paid per our normal schedule via paper checks. Checks and EOPs are printed and mailed from our St. Louis facility.

Also note that you may see paid dates on your claims in Availity Essentials and MagellanProvider.com; however, they represent the date the claims were adjudicated. Due to the cybersecurity incident, claims were adjudicated but checks and electronic transfers may not have been completed, as of Feb. 21, 2024.

Copies of explanation of payment (EOP) for claims processed prior to Feb. 21, 2024 are not currently available through Availity Essentials or MagellanProvider.com. For claims processed on or after Feb. 21, you will receive a paper EOP with your check and you may be able to see the EOPs online. Please note that the majority of EOPs cannot be viewed online as our systems have not yet been reconnected to Change Healthcare.

As a reminder, cybercriminals will use situations like this to make phone calls or send emails to take advantage of individuals and organizations. Please stay vigilant to protect against risks associated with these types of social engineering attacks.

Thank you for your patience and we apologize for any inconvenience that may result as we work through this evolving situation. 

For regular updates from UnitedHealth Group, Change Healthcare’s parent company, please visit https://www.unitedhealthgroup.com/changehealthcarecyberresponse.

 

*Employee Assistance Program and Pennsylvania HealthChoices payments are not paid through ECHO and therefore are not impacted.