Red Flags Rule No Longer Applies to Physicians and Chiropractors
A new law now exempts certain businesses, including physician practices and many hospitals, from the federal Identity Theft Red Flags Rule. The Red Flags exemption law more narrowly defines the statutory term “creditor,” and, as a result, far fewer organizations must comply with the Red Flags Rule.
The Red Flags Rule, in effect since January 2008, was created to protect “creditors” and “financial institutions” against the risk of identity theft. The Rule requires that all covered entities create and implement a written identity theft prevention program to help identify, detect and respond to certain “red flags” of identity theft. The Federal Trade Commission had previously postponed enforcement of the Red Flags Rule several times due to applicability concerns voiced by certain industries, including healthcare.
Under the new exemption law, creditors that must comply with the Rule no longer include those who “advance funds on behalf of a person for expenses incidental to a service provided by the creditor to that person.” The new law exempts lawyers, doctors, chiropractors, dentists and other types of healthcare providers. Creditors that must comply are those that obtain and use consumer reports in connection with a credit transaction and furnish information to consumer reporting agencies.
Learn more about the laws that affect healthcare providers. The Martin Law Firm is a health law firm located in Blue Bell, Montgomery County, PA. The Martin Law Firm represents health care providers for matters involving health care compliance, Medicare audits and appeals, insurance post-payment reviews and general business matters. Contact The Martin Law Firm to speak to an experienced health care attorney today.