The FTC Red Flag Rules will take effect on November 1, 2009. Will your practice be prepared and protected? If not, you’re not only putting yourself and your practice at risk; you’re also exposing your patients to the threat of identity theft.
The FTC Red Flag Rules:
The FTC Red Flag Rules are regulations that require physician practices such as chiropractors, dentists, and other healthcare providers to create, implement, and maintain written identity theft protection programs to prevent consumer identity theft. While some healthcare providers have regarded the FTC Red Flag Rules as an unnecessary burden on a healthcare system that is already strained, the FTC Red Flag Rules will actually benefit their practices by setting-up policies that protect themselves from identity theft and potential lawsuits from patients whose identity have been compromised.
The FTC Red Flag Rules and HIPAA:
How do FTC Red Flag Rules compare to rules set forth by the HIPAA (Health Insurance Portability and Accountability Act) privacy and security rules? In addition to protecting a patient’s personal health information under HIPAA, the FTC Red Flag Rules demand more comprehensive protection to ensure proactive identity theft detection and prevention, including:
• Credit card information
• Tax ID Numbers
• Social Security Numbers
• Employer Identification Numbers
• Insurance claim information
The Implications of FTC Red Flag Rules:
Don’t let your practice or your patients become a victim of identity theft. The FTC Red Flag Rules aren’t just mandatory. They’re smart for business as well as patient health and safety. Prevention doesn’t just apply to diseases in your healthcare practice. It also applies to identity theft. The sooner you implement the FTC Red Flag Rules into your practice, the sooner you’ll ensure 100% privacy, security, and compliance.
The FTC Red Flag Rules alert you to numerous kinds of suspect information, such as:
• Warnings from consumer reporting agencies
• Suspicious documents
• Inconsistent addresses
• Fictional Social Security Numbers
• Unusual patient billing practices
• Irregular photocopies and picture identification cards
How Do You Implement the FTC Red Flag Rules?
Prepare your practice for the FTC Red Flag Rules regulations by:
• Identifying the red flags in your practice
• Developing a written policy describing how your practice will adhere to FTC Red Flag Rules
• Defining a process for responding to red flags
• Creating an annual system to review and update FTC Red Flag Rules and policies
Do you need help preparing for the November 1, 2009 FTC Red Flag Rules? The Identity Advocate can help! Call 310.831.4400 or email info@theidentityadvocate.com. Visit www.theidentityadvocate.com.
