Red Flag Rule In Effect May 1, 2009

[Guest guest]

Dear List,

For those of you that are unfamiliar with the " Red Flag Rule, " it will go

into effect on May 1, 2009.

History: The Fair and Accurate Credit Transactions Act (FACTA) was

established on 12/03/03 to provide consumers with increased protection from

identity

theft. In doing so, six (6) federal agencies were directed to establish

guidelines to identify identity theft. The final regulations were published on

11/07/07. Pursuant to this publication, It was determined that " medical

identify theft " was on the rise and as a result, false claims were being filed

and

erroneous entries in medical records (due to medical identity theft) were

placing patients at risk.

Accordingly, the Federal Trade Commission (FTC) pushed for the immediate

implementation of " identity theft " policies, procedures and programs be

established by all medical creditors. " Creditors, " as defined by the FTC, is

" any

person who regularly extends, renews or continues credit or regularly arranges

for the extension, renewal or continuation of credit. The FTC further

determined that " health care providers typically extend credit by not demanding

payment in full at the time of service " and/or " may partner with a bank or

finance company to facility loans for patients. "

In response to the FTC's request, the AMA responded on 9/30/08 by requesting

the FTC provide a formal analysis and application of rules as it

specifically pertained to MD offices.

As a result of the AMA's request, the Federal Trade Commission (FTC)

suspended enforcement of Red Flag rules until May 1, 2009 to give creditors, or

in

this case physicians and practitioners, additional time to implement programs.

So here we are, less than three (3) months away from the required

implementation of the Red Flag Rules and I am wondering how many list serve

members

have begun the process of creating Red Flag Rule Medical Identity Theft

policies, procedures and programs and if so, what resources your practice or

facility

used or is currently using?

We have begun creating this program for our clients and have gone to the

World Privacy Forum web site at

_www.worldprivacyforum.org/medicalidentitytheft.html_

(http://www.worldprivacyforum.org/medicalidentitytheft.html) . I have

also found a White Paper written by Iron Mountain entitled " The Red Flag

Regulations: A New Front Opens in the War on Identity Theft. "

If any of you have additional resources you are willing to share, I would

sincerely appreciate it.

Have a great Thursday!

Vickie

D. Cavitt, President

Medical Legal Alliance, L.L.C.

600 Guilbeau Road, Suite A

Lafayette, LA 70506

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