Red Flags Rule in Healthcare

The Red Flags Rule requires many businesses to develop and implement a formal, written Identity Theft Prevention Program for the purpose of detecting the warning signs, or “red flags”, of identity theft throughout their day-to-day operations. 

Does the Red Flags Rule Apply to Medical Practices and other Healthcare Organizations?

The Red Flags Rule legislation was delayed on more than one occasion.  When it finally went into effect the definition of “creditor” had been clarified such that most healthcare providers will not fall under the Federal Trade Commission’s definition of “creditors” as identified in the Federal Register.  Formal policies and procedures on preventing and dealing with identity theft may no longer be mandated by regulation, but such policies are still a good idea for healthcare providers.  You can read more about our take on this legislation in in our blog titled:  The Red Flags Rule Doesn’t Apply to Physician and Healthcare Organizations. “Really?”

For your benefit and use, The Fox Group is providing some of the key documents regarding The Red Flags Rule directly from the FTC.  Select from the links below to download those items that you wish to view:

Select and download the following official documents from the federal government concerning The Red Flags Rule:

Download the Federal Register / Vol. 72, No. 217

File Size:  803 Kb

This contains the actual text of The Red Flag Rule.

Download the FTC’s “Frequently Asked Questions”

File size:  70 Kb

This document answers a variety of questions concerning The Red Flags Rule and its applicability.

Download the FTC’s “How-to Guide for Business”

File size:  21,932 Kb  (may take several minutes to download)

Determine if you are covered by The Red Flags Rule, and if so, what to do about it.

Download the FTC’s “Red Flags Rule Policy Template”

File size:  167 Kb

This PDF fillable form will help you draft a Red Flags Rule policy if you’re a low risk business.