AMCNO Provides Timely Information on Red Flag Rule Compliance

On May 1, 2009, the Federal Trade Commission (FTC) will begin enforcing its so-called “Red Flag Rules,” which require creditors to create and implement a written Identity Theft Prevention Program. The Rules went into effect on January 1, 2008, but enforcement of the Rules have been postponed to allow entities time to come into compliance with the regulations. The goal of the Rules is to attempt to minimize the incidents and impact of identity theft.

In creating these Rules, as an expansion to the existing Fair And Accurate Credit Transaction Act (FACTA), the federal government continues to recognize that identity theft can have a real and lasting impact on its victims. In the realm of healthcare, when an individual’s identity is stolen, more than financial repercussions can occur. For example, false and inaccurate medical histories may be created leading to inappropriate treatment and/or denial of health insurance claims or coverage.

Because of the broad definition of “creditor” under the Rules, many healthcare providers, even those with small practices who do not seem to extend credit in the traditional sense, may still be subject to the Rules. Consequently, the impending enforcement date leaves many healthcare providers scrambling to find out what needs to be done to come into compliance with the Rules.

The law firm of Walter and Haverfield, LLP along with assistance from the AMCNO has prepared detailed information on the Red Flag Rules which will become effective on May 1, 2009. An article on this issue appears in the Spring Edition of the AMCNO publication “Practice Management Matters” which is on its’ way to our members and their practice managers at this time. A follow up article will also be included in the May/June issue of the Northern Ohio Physician magazine. The article in our practice management newsletter includes a sample form for use by your office. A copy of the article prepared on the Red Flag rules and the sample form for your use is also posted on our web site at www.amcnoma.org under the Practice Management link. Additional information on the Red Flag Rules and identify theft may be viewed on the FTC web site at http://www.ftc.gov/bcp/edu/microsites/idtheft//  In addition, the FTC has prepared a guide for businesses – to view this guide go to http://www.ftc.gov/bcp/edu/pubs/business/idtheft/bus69.pdf