NewswireToday - /newswire/ - Beaverton, OR, United States, 03/11/2009 - The FTC responded to concerns raised by the AMA and other health care organizations regarding the applicability of the “Red Flags Rule”.

In a February letter to the American Medical Association (AMA), the FTC responded to concerns raised by the AMA and other health care organizations regarding the applicability of the “Red Flags Rule” amendment to FACTA (Fair and Accurate Credit Transactions Act). The AMA, and others held that the “Red Flags Rule” did not apply to health care providers as they were not creditors. Additionally, the groups asserted that they were already covered under HIPAA (Health Insurance Portability and Accountability Act). While HIPAA compliance is required for data security, the “Red Flags Rule” is distinct from HIPAA and requires a unique identity theft prevention program to detect, prevent and mitigate the fraudulent use of patient’s medical and financial information. In the letter, the FTC was very clear that any business that renders a service or delivers goods and defers the payment for such is required to comply with the “Red Flags Rule”. The FTC letter can be viewed at the FTC's website.

The law was effective January 1, 2008, but the FTC decided to delay their enforcement activities until May 1, 2009 due to the confusion over what kinds of businesses were required to comply.

Now that the FTC has clarified its position, regarding health care, IDTELi is pleased to announce the re-launch of the turn-key Red Flags for Health Care Compliance Program. The program is tailored specifically for health care and includes everything a health care provider needs to meet the requirements mandated by the “Red Flags Rule” without accruing huge legal fees or devoting weeks of staff time.

Agency / Source: IDTELi

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