December 2010


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"Franklin W. West" <[log in to unmask]>
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UVM Flownet <[log in to unmask]>
Sun, 5 Dec 2010 12:01:28 -0800
text/plain (31 lines)
Short version:  the sky is not falling (nice to know that one thing is getting better ;-).

Longer version:  Under the Red Flags Rule, which was developed by the FTC and became effective Jan. 1, 2008 (although implementation was postponed several times), organizations that extend credit to their clients are required to develop and implement written identity theft prevention programs that help identify, detect and respond to patterns, practices or specific activities, known as "red flags," that could indicate identity theft.  Initially, the FTC interpreted "creditor" very broadly (likely much broader than the congressional intent) and included virtually every health care service provider (essentially excluding only those operating on an up-front cash pay basis).  Furthermore, penalties for non-compliance were significant.

Under this scenario, vascular technologists, sonographers, nurses, physicians, etc. become creditors (or employees of creditors - which means they are obligated to implement and enforce the required identity theft prevention programs - some argued requiring they act as investigators for police).  

Sen. Dodd noted that the current legislation "makes clear that lawyers, doctors, dentists, orthodontists, pharmacists, veterinarians, accountants, nurse practitioners, social workers, other types of healthcare providers and other service providers will no longer be classified as 'creditors' for the purposes of the Red Flags Rule just because they do not receive payment in full from their clients at the time they provide their services, when they don't offer or maintain accounts that pose a reasonably forseeable risk of identity theft."

The rule continues to apply to, e.g., banks and credit unions, which are, as a result, examined for Red Flags compliance by federal regulators.  

Isn't it nice to know that you do not have to worry about something?  

-----Original Message-----
From: UVM Flownet [mailto:[log in to unmask]] On Behalf Of K Archer
Sent: Saturday, December 04, 2010 9:41 PM
To: [log in to unmask]
Subject: Re: Senate Passes bill that would exempt physician practices from compliance with 'Red Flag Rule'

could you either translate or
give brief intro/summary for the uninitiated as to what this is about and the import to sonographers of the Creditor area highlighted...

thank you

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