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Episource Data Breach Exposes Health Information of Over 5.4 Million Americans
July 14, 2025
Medical billing company Episource is notifying more than 5.4 million individuals in the U.S. that their personal and medical data was stolen in a significant cyberattack earlier this year, according to a filing with the U.S. Department of Health and Human Services. The incident is now among the largest healthcare data breaches of 2025.
Episource, a subsidiary of UnitedHealth Group’s Optum unit, plays a critical role in the U.S. healthcare system by managing billing adjustments for hospitals, doctors, and other providers. Because of this, it handles vast quantities of sensitive patient data, including both personal identifiers and protected health information (PHI).
In data breach notices filed in California and Vermont, Episource revealed that a cybercriminal had accessed and exfiltrated copies of patient data from its systems over a weeklong period that ended on February 6, 2025. The stolen data includes names, addresses, email addresses, phone numbers, medical record numbers, and detailed health information such as diagnoses, test results, medications, treatment data, and insurance plan details.
While Episource did not explicitly state the cause of the breach, Sharp Healthcare, one of its clients, informed affected individuals that the breach stemmed from a ransomware attack. This aligns with a rising trend of healthcare institutions falling victim to ransomware gangs that encrypt systems and steal sensitive data to extort payment.
This latest breach is part of a troubling pattern of cybersecurity failures tied to UnitedHealth Group. Just a year ago, another UnitedHealth subsidiary, Change Healthcare, suffered a ransomware attack that exposed personal and health data of more than 190 million Americans—the largest healthcare data breach in U.S. history. Additionally, UnitedHealth’s Optum division previously exposed an internal claims-related chatbot to the public internet, raising further concerns about its data security posture.
The Episource incident underscores the growing vulnerability of the healthcare sector to cyber threats, especially as companies continue to centralize vast amounts of health information. With millions of patients now at risk of identity theft, fraud, or further exploitation, the breach is a stark reminder of the high stakes of medical data security in an increasingly digital healthcare system.
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