Nebraska AG Sues Over Healthcare Data Breach

Nebraska Attorney General Mike Hilgers has filed a lawsuit against Change Healthcare and its parent company UnitedHealth Group, alleging a massive data breach that affected approximately 575,000 Nebraskans. The breach occurred in February and involved hackers using a low-level employee's credentials to access sensitive personal and medical data for nine days without detection. Hilgers claims that outdated cybersecurity measures and a lack of multi-factor authentication led to significant operational disruptions and financial strain on healthcare providers. Critics point out that Change Healthcare delayed notifying affected individuals for several months, with some notices sent nearly 10 months post-breach. The lawsuit seeks to hold the companies accountable for violating Nebraska's consumer protection and data security laws and for misrepresenting their data security practices. The Nebraska Hospital Association supports the lawsuit, emphasizing the severe impact on its members due to delayed authorizations and payments.