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Will the “Red Flags Rule” Increase Costs, Force More Technology Development and Telemedicine?

Earlier today, the U.S. House of Representatives passed S. 3987, the “Red Flag Program Clarification Act of 2010.” Originally scheduled to take effect Nov. 1, 2008, this legislation has failed to be approved. If passed now, it would include health care providers in the type of creditors that must comply with the “red flags” rule.

red flags ruleThe red flags rule, requires creditors to develop identity theft prevention and detection programs. According to the Federal Trade Commission (FTC), physicians who do not accept payment from their patients at the time of service are creditors and must comply with the rule by developing and implementing written identity theft prevention and detection programs in their practices.

Because the U.S. Senate unanimously passed the bill on Nov. 30, it is being sent to the White House where President Obama is expected to sign it into law before the Jan. 1, 2011, deadline.

Professional groups such as the American Medical Association are protesting.

Which technology will come into play to secure health care “creditors” if this rule holds? Please comment if you can.

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