FSDDS Red Flag Rules
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Your association has prepared a briefing kit that will help you comply with a new Federal code known as Red Flag Rules, due to take effect June 1, 2010. These rules are intended to help reduce the dangers of the crime known as identity theft with respect to businesses that are creditors who maintain covered accounts. A "Red Flag" is an alert that indicates a possible risk of identity theft exists and requires investigation.
The briefing document "Red Flag Compliance Guide" has more information about how the government defines "covered accounts," but in general, unless you provide services only on a prepaid basis, if you bill clients for services rendered, bill through insurance, and/or offer payment plans, you are likely a creditor for Red Flag Rule purposes.
The good news is that if your practice is HIPAA compliant, then you will be able to easily fold a Red Flag program into your HIPAA procedures. Although HIPAA focuses on confidential health information, HIPAA compliance also helps prevent identity theft. "Protected health information" is defined broadly to include identifiable demographic information and information that relates to payment for healthcare services (in addition to information about an individual's condition and treatment.)
We recommend you work through the Red Flag Rules Checklist, read the Red Flag Compliance Guide, examine the CFR 681 Appendix list of 26 Red Flag items that may apply to your practice, and then use the Red Flag Policy Template documents to prepare compliance documentation for your practice. In the event you have a patient who has a claim of identity theft that relates to your practice, the Sample Affidavit form offers guidance for resolution.
- Read the Compliance Guide
- Tailor the Sample Policies
- Train your Compliance Officer and Staff
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