Endocrine Insider
November 12, 2009

(See Full Issue)

The Federal Trade Commission (FTC) announced last week that, at the request of Members of Congress, it will delay the implementation of the Red Flags Rule until June 1, 2010. After multiple previous delays, the rule was scheduled to go into effect on November 1, 2009.

Developed under the “Fair and Accurate Credit Transactions Act,” the Red Flags Rule requires financial institutions and creditors to address the threat of identity theft in their business practices. The law requires creditors to develop and implement written identity theft prevention programs and protection of credit card information and tax identification numbers, such as social security numbers. According to the FTC, physicians who accept insurance or allow payment plans are considered creditors.

The American Medical Association (AMA) and medical specialty societies, including The Endocrine Society, have expressed their dissent that the Red Flags Rule should apply to physicians and have presented the argument that physicians are not, in fact, creditors. Both the AMA and the FTC have developed resources on compliance with the rule and simple identity theft prevention programs that can be incorporated into current HIPAA security and privacy policies. Physician resources are available at:

http://www.ftc.gov/redflagsrule

http://www.ama-assn.org/ama/no-index/physician-resources/red-flags-rule.shtml