Red Flag Rules
Doctors and Other Small Businesses are Not “Creditors” Under Red Flags Rule
The President has signed a bill that clarifies the term “creditor” in the Red Flags Rule, excluding doctors and other small businesses. The Red Flag Program Clarification Act of 2010 limits application of the Red Flags Rule to creditors that regularly and in the ordinary course of business: (1) obtain or use consumer reports, directly… Read More »
FTC Delays Red Flag Rules AGAIN
The Federal Trade Commission (“FTC”) has announced yet another delay in enforcement of the Red Flag Rules regarding identity theft. This delay is in effect through December 31, 2010. The delay will allow congress to consider legislation that would affect the scope of entities covered by the Rule. In November 2007, the FTC issued major… Read More »
Healthcare Professionals Ask FTC for Exemption from Red Flag Rules
The heads of the American Medical Association, the American Dental Association, the American Osteopathic Association, and the American Veterinary Medical Association have asked the Federal Trade Commission (“FTC”) to declare that its identity theft prevention rules (the “Red Flag Rules”) do not apply to their licensed professionals. Following the November 2009 United States District Court decision in American Bar Association v. FTC, which held… Read More »
FTC Red Flag Rules Enforcement Delayed Until June 1, 2010
The Federal Trade Commission (“FTC”) has again extended enforcement of the Red Flag Rules, now until June 1, 2010. The latest delay comes at the request of Congress, which is considering a bill that amends the identity theft rule by eliminating entities with fewer than 20 employees from complying. The House of Representatives passed that… Read More »
FTC Extends the “Red Flag” Rules Deadline Again
The Federal Trade Commission (“FTC”) has now announced that it will postpone the enforcement of the red flag rules until November 1, 2009. The red flag rules require creditors, including physicians and hospitals, to adopt written plans for tracking and responding to indicators of identity theft in their billing operations. The move to extend the… Read More »
Red Flag Rules Effective August 1, 2009
Just a reminder that the red flag rules will be enforced beginning August 1, 2009. The red flag rules require creditors to implement a formal policy for detecting and preventing identity theft. The rules were authorized under the 2003 Fair and Accurate Credit Transitions Act, which covers entities that regularly extend credit, or defer payment… Read More »
Red Flag Rules – The Next Steps for Physicians
The red flag rules, which require creditors to implement a formal policy for detecting and preventing identity theft, also apply to the healthcare industry. The effective date for the red flag rules has been delayed until August 1, 2009. The red flag rules were authorized under “the 2003 Fair and Accurate Credit Transitions Act, which”… Read More »
FTC delays enforcement of the Red Flags Rules until August 1, 2009
The Federal Trade Commission (“FTC”) has delayed the enforcement date of the Red Flags Rules until August 1, 2009. Last summer, the FTC announced that it would consider health care providers to be creditors when they accept insurance and bill patients after services are provided for any amounts that insurance does not pay; or if… Read More »
How to Identify Red Flags
A healthcare provider’s Identity Theft Prevention Program should identify red flags in four main categories: (1) suspicious documents; (2) suspicious personally identifying information; (3) suspicious activities; and (4) notices from victims of identity theft, law enforcement authorities, insurers, or others suggesting possible identity theft. All employees who interact with patients must be aware of things… Read More »
WHY DO HEALTH CARE PROVIDERS NEED TO BE AWARE OF THE RED FLAG RULES?
Many health care providers have been unaware of the Red Flag Rules or have been uncertain of the applicability of these requirements. Under the Red Flag Rules, financial institutions and creditors must develop a written program that identifies and detects the relevant warning signs – or “red flags” – of identity theft. Providers in… Read More »
