Episource data breach: What happened and who’s affected?
In one of the largest healthcare cyberattacks of 2025, Episource is now notifying over 5.4 million Americans that their personal and medical information was compromised. The Episource data breach was reported to the U.S. Department of Health and Human Services and stems from a February attack, which allowed hackers to access and copy sensitive health data. Given Episource’s role in managing medical billing for healthcare providers, this incident has raised serious privacy concerns across the industry. Patients affected are spread across multiple states, and the scope of the stolen data includes everything from names and contact details to in-depth health records and insurance information.
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This breach impacts individuals connected with healthcare organizations that use Episource’s services for processing medical claims and risk adjustment. According to disclosures in states like California and Vermont, attackers were inside Episource’s systems for nearly a week before being discovered. During that time, they reportedly accessed detailed patient records—including test results, medications, diagnosis codes, and even data tied to specific treatments. With cybercriminals targeting healthcare systems more frequently, the Episource data breach adds to a growing list of incidents affecting healthcare privacy and trust in health tech providers.
What information was exposed in the Episource data breach?
The stolen data goes far beyond just names and phone numbers. Victims of the Episource data breach had protected health information (PHI) accessed, including medical record numbers, diagnosis history, prescription information, care summaries, and insurance policy numbers. This level of exposure can make individuals particularly vulnerable to medical identity theft—a rising form of cybercrime where hackers use health information to file false insurance claims, obtain prescriptions, or receive care under another person’s identity.
In addition, the data breach compromised contact information like postal and email addresses, making phishing attempts even more dangerous and targeted. Episource has yet to provide technical specifics about how the attack occurred, but a related healthcare partner, Sharp Healthcare, has confirmed ransomware was the likely cause. This is consistent with a growing pattern of healthcare systems being targeted by ransomware gangs who not only lock down networks but steal and threaten to publish sensitive data.
Episource, UnitedHealth, and a pattern of healthcare cyberattacks
Episource is a subsidiary of Optum, which is part of UnitedHealth Group—one of the most powerful healthcare conglomerates in the U.S. This Episource data breach follows closely on the heels of a catastrophic cyberattack on Change Healthcare (another UnitedHealth company) in 2024, which compromised the personal health data of more than 190 million Americans. That incident remains the largest healthcare data breach in U.S. history. Now, the repetition of such breaches across different UnitedHealth entities raises questions about cybersecurity oversight and infrastructure across the organization.
In another 2024 case, UnitedHealth’s Optum division exposed an internal chatbot to the public web, highlighting what experts say is a pattern of poor digital hygiene. These repeated incidents reflect not only the value of healthcare data to cybercriminals but also the gaps in security protocols at even the most resource-rich companies. With healthcare data fetching high prices on the dark web, companies like Episource must prioritize proactive cybersecurity measures—including regular audits, breach simulations, and endpoint detection—to avoid more crises.
How patients can respond to the Episource data breach
If you’ve received a notification letter from Episource, it’s important to take immediate action to protect your health and identity. First, enroll in any free credit monitoring or identity theft protection services offered by Episource. Keep a close eye on your explanation of benefits (EOB) from your insurance provider, as unusual claims may be a sign of fraud. You should also consider placing a fraud alert or credit freeze with the major credit bureaus if your Social Security number or other sensitive financial data may have been compromised.
Healthcare providers and policymakers must also take note of the implications of the Episource data breach. The healthcare sector is under constant digital threat, yet many organizations still lag behind in adopting robust cybersecurity protocols. Stronger regulations, mandatory breach response plans, and transparency requirements could help prevent such incidents in the future. Until then, patients must remain alert, informed, and proactive in defending their medical privacy.
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