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What is Red Flags Rule and does it apply to my practice?

 

May 12, 2016


Question:

Hi Jennifer,

I was very interested in Tuesday's newsletter on refusing care to a patient who doesn't show ID. Reference was made to "Red Flags" law.  What is that?  Do I need to be concerned?

Thanks,  Dr. K

Answer:

The Red Flags Rule is enforced by the Federal Trade Commission and "requires many businesses and organizations to implement a written Identity Theft Prevention Program designed to detect the warning signs – or red flags – of identity theft in their day-to-day operations." https://www.ftc.gov/tips-advice/business-center/privacy-and-security/red-flags-rule. 

The Rule does not apply to healthcare provider practices - doctors and lawyers were exempted out at the 11th hour; however, that doesn't mean the requirements set forth under Red Flags Rule aren't a good idea to adopt regardless. The requirements include checking identification and verifying information before disclosing protected health information or treating. Having a Red Flags policy allows you to train on and then enforce against staff failing to comply.  Also, maintaining a policy offers some protection against a charge of aiding in insurance fraud, if some patients are not coming in with their proper insurance card.  

Happy to discuss in further detail offline.   

 


 
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Looking for HIPAA and compliance forms?  
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Have a question or comment for Jennifer?
Contact Jennifer at Jennifer@Kirschenbaumesq.com or  at (516) 747-6700 x. 302.
Interested in having Jennifer speak at an event or
at a residency/fellowship program?
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