Red Flag Rules Update: Hope for Healthcare Providers

Posted by Jason Greis on October 18, 2009 under Articles | Be the First to Comment |  Print

The House Financial Services Committee is sending legislation (H.R. 3763) to the floor that addresses concerns over Federal Trade Commission rules requiring a broadly defined mix of “creditors,” including healthcare providers, to implement identity theft prevention programs. With the “red flag” rules compliance deadline slated for November 1, 2009, the bill, introduced by Rep. John Adler (D-New Jersey), would exclude health care, accounting, and legal practices with 20 or fewer employees from the “creditor” category. The legislation has two co-sponsors: Reps. Paul Broun (R-Georgia) and Mike Simpson (R-Idaho). Under the FTC rules, creditors are required to develop programs to identify relevant patterns, practices, and specific activities that are “red flags” for possible identity theft.

Jason S. Greis, Esq.
McGuireWoods LLP
312.849.8217