The Federal Trade Commission (FTC) announced today that it will delay the enforcement date of the Red Flags Rule until November 1, 2009. This is the third delay prompted, in part, by concerns expressed by the health care community. The FTC announced that this most recent delay will give those subject to the rule more time to develop and implement written identity theft prevention programs.
The FTC originally announced the Red Flags Rule last summer. As previously blogged here, a health care provider who regularly bills patients after completion of services, allows patients to set up payment plans, or helps patients get credit from other services will fall under the rule’s broad definition of creditor. Providers who are subject to the rule are required to develop and implement a written Identity Theft Prevention Program. The policy must deal with the identification, detection and response to specific “red flags.”
At Wachler & Associates, P.C. we have been working with health care providers to develop reasonable and practical Red Flags Rule compliance policies that satisfy the legal requirements of the rule. If you need asssistance, please contact us.
Leave a Reply
You must be logged in to post a comment.