TMA, AMA: Red Flags Raise Red Flags

TMA has joined the American Medical Association and 25 other medical associations in objecting to defining physicians as creditors, thus making them subject to the Federal Trade Commission's (FTC's) regulations [ PDF ] that would require them to develop written identity theft prevention programs.

The FTC says physicians who regularly bill their patients for services (including copayments and coinsurance) are creditors and must develop and implement written identity theft prevention programs for their practices by May 1. The programs must identify and respond to "patterns, practices, or specific activities - known as 'red flags' - that could indicate identity theft," the FTC says.

In a letter to the FTC, TMA and others expressed several concerns. They include defining physicians as creditors, as well as the overlap between this rule and other regulatory requirements already imposed on physicians such as the Health Insurance Portability and Accountability Act regulations. They also say the FTC failed to comply with the Administrative Procedure Act (APA), which requires the FTC to explain its regulatory proposals and give the public notice and a chance to comment.

"Finally, given our nation's current economic crisis, imposing this unjustified, unfunded mandate on physicians, especially small physician practices that account for 80 percent of outpatient visits, could have serious adverse consequences on patients' access to our health care delivery system and services,"  the letter says. The groups urged the FTC to withhold any plans to apply the rule to physicians until it complies with the APA and publishes a new rule and allows physicians to comment. Until further notice, however, physicians should begin plans for their compliance programs.

TMA will hold a Learn @ Lunch audio conference on Thursday, April 16, from 11:45 am to 1 pm. This program will review red-flag rule regulations and offer practical tools such as action plans, policies and procedures, and implementation techniques to assist physicians with compliance. One $50 registration fee will train your entire staff.

If you are unable to attend the audio conference, a session on the red-flag rules will be held during TexMed 2009 in Austin on May 1, from 2:30 to 3:30 pm. TexMed 2009 is a free member benefit, and medical office support staff may attend for $75 .

For more information about the audio conference or the TexMed presentation, e-mail  Shanan Anderson  or call her at (800) 880-1300, ext. 1419, or (512) 370-1419.

TMA will continue to update and advocate on your behalf as it hears more from the FTC on its interpretation of this rule and any health care specific guidance. Look for free sample policies and procedures on the TMA Web site after April 16.

Action , March 2, 2009

Last Updated On

July 14, 2010

Originally Published On

March 23, 2010

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