July 16 Reuters UnitedHealth on Tuesday forecast a bigger hit to earnings this year from a February hack at its tech unit, as it rolls out loans to support affected healthcare providers and records higher expenses from notifying customers.
Shares of the company fell 2.4 despite a beat on secondquarter profit as the health insurance titan spent more on members39; medical services, a closely tracked metric by investors.
The company expects a 30cent higher hit to fullyear adjusted profit from the disruptions caused by the hack at its Change Healthcare unit.
UnitedHealth attributed the change to its loan program for providers affected by the hack, and the costs from notifying customers about any potential data breach.
Information made vulnerable in the attack is believed to include health insurance member IDs, patient diagnoses, treatment information and social security numbers.
The hack at the unit, which processes about 50 of U.S. medical claims, was one of the worst to hit the American healthcare industry and hit payments to doctors and healthcare facilities.
The company said on Tuesday it had restored the majority of the affected services from the hack.
Still, UnitedHealth maintained its fullyear adjusted profit forecast of between 27.50 and 28.00 per share.
The company39;s medical loss ratio, which is the percentage of premiums spent on medical care, was 85.1 in the second quarter, compared with 83.2 a year earlier.
Analysts on average expected the industry…