Medical Practice Red Flag Rules

Red Flag Rules for the Medical Practice are covered in the
FTC''s "Fighting Fraud with the Red Flags Rule:
A How-To Guide for Business" as outlined in the section:

The Red Flags Rule: Frequently Asked Questions

Who’s Covered by the Red Flags Rule?

Under the Rule, the definition of “creditor” is broad, and includes
"examples of groups that may fall within this definition as utilities, health care providers, lawyers, accountants, and other professionals."

In addition, the definition includes anyone who regularly participates in the decision to extend, renew, or continue credit, including setting the terms of credit.

For example, a third-party debt collector who regularly renegotiates the terms of a debt would be a creditor under the Rule.

The AMA - Red Flags Rule

In Nov. 2007, the Federal Trade Commission (FTC) issued a set of regulations, known as the “Red Flags Rule,” requiring that certain entities develop and implement written identity theft prevention and detection programs to protect consumers from identity theft.

Originally scheduled for a Nov. 1, 2008 compliance date, the FTC has now delayed the enforcement date of the Red Flags Rule until Nov. 1, 2009.

The new compliance date of Nov. 1, 2009, which follows two earlier extensions to May 1 and then later to Aug. 1, is a result of continued advocacy by the AMA and others who continue to object to the applicability of this Rule to health care providers and other professionals.

Since the Rule was issued, the AMA has objected to the FTC's interpretation that physician practices are "creditors" when they accept insurance and bill patients after services are provided or if they allow patients to set up payment plans after services have been provided.

The FTC states that this delay is intended to "give creditors and financial institutions more time to review this guidance and develop and implement written Identity Theft Prevention Programs."

While the AMA intends to continue to make the case to Congress and the agency that the FTC should republish the rule so that there is sufficient opportunity to formally comment and state the AMA's objections to physician inclusion in the program, the AMA has prepared a guidance document.

Red Flags Rule Guidance Document
This informative resource addresses the following questions:

• What is the purpose of the Red Flags Rule?
• How do the rules differ from HIPAA Privacy and Security Rules?
• Who has to comply with the Red Flags Rule?
• What is a “Red Flag”?
• How can physician practices comply with the Red Flags Rules?

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Any Company that works with Consumer Credit is now required to have in place an Identity Theft Prevention program by November 1st, 2009.

Start now it takes time to become compliant.

These prevention measures must be in writing and followed closely or those companies not complying can potentially face large daily fines, civil litigation and ongoing audits by the Federal Trade Commission

What do you get when you enroll?

Contact Us: GetCompliant@gmail.com