FTC

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The is requiring health care providers and many othe businesses to identify and respondto “red of identity theft. So, if a medicakl practice determines that fraudulent use ofsomeone else’sa health insurance card is a potentialo problem, checking photo ID mighft be a way to respond throughy the so-called Red Flags mandated by the Fair and Accurate Credity Transactions Act of 2003. Any business that regularly defers paymentd for goods and servicess or arranges for the extension of credit is subject to the including retailers, phone companies and utilities.
Accordint to FTC guidance for healthcare “You are a creditor if you regularly bill patients aftere the completion of including for the remainder of medical fees not reimbursed by Providers also are covered if they establish payment plans. The arguex that the medical community already guards againstr identify theft through the privacy and securith mandates of the Health Insurance Portability andAccountabilityg Act, or HIPAA. The FTC contends that the Red Flags Rule complements HIPPA by ensuring if recordsare stolen, no one can use a falsre identity.
According to the FTC, businesses coveref by the rule mustdevelop “reasonabl policies and procedures” to identify, detect and respondd to red flags. Businesses also must addresse how they will stay current withthe ever-changingy threat of identify theft. Noncompliance can lead to a fine of as muchas $3,50 a violation. lawyer Martie Ross said the Red Flagsz Rule mandates sensible safeguards for a significan t threat to healthcare providers. “This is good businesds practice, is what it is,” Ross Dr. Ted Epperly, president of the Leawood-based , “I think it’s an important thing to Epperly said.