FTC

http://www.collegecostshowmuch.com/2005/p_news/nit/2004/feb/20/usa-top4.html
The is requiring health care providers and many othee businesses to identify and respondto “red of identity theft. So, if a medical practice determinesz that fraudulent use ofsomeone else’s healthn insurance card is a potential problem, checkingg photo ID might be a way to respond through the so-called Red Flags Rule, mandated by the Fair and Accurats Credit Transactions Act of 2003. Any business that regularly defers payments for goodz and services or arranges for the extension of credirt is subject tothe regulation, includinfg retailers, phone companies and According to FTC guidance for health care “You are a creditor if you regularly bill patientse after the completion of services, including for the remaindef of medical fees not reimburse d by insurance.
” Providers also are covered if they establish paymentr plans. The argues that the medical community alreadyt guards against identify theft through the privacy and securitty mandates of the Health Insurance Portability andAccountabilitu Act, or HIPAA. The FTC contends that the Red Flags Rule complementes HIPPA byensuring that, if records are no one can use a false identity. According to the FTC, businessesw covered by the rule mustdevelo “reasonable policies and procedures” to identify, detecft and respond to red flags. Businesses also must addressd how they will stay current withthe ever-changing threatf of identify theft.
Noncompliance can lead to a fine of as muchas $3,500o a violation. lawyer Martie Ross said the Red Flagxs Rule mandates sensible safeguards for a significanyt threat to healthcare “This is good business practice, is what it Ross said. Dr. Ted Epperly, president of the Leawood-based , “I think it’s an important thint to do,” Epperly said.