The deadline for organizations to have their "Red Flag" program in place is May 1, 2009. The Red Flag Rules are designed to detect, prevent, and deal with identity theft and will be regulated by the Federal Trade Commission. The penalty for a single violation under the new Red Flag rules is $2500 per occurance at this time.
Healthcare providers got a shock when they found out they were covered by the rules. The original deadline was November 1, 2008; however, as news reached healthcare providers and the panic began to set in, the government pushed the deadline back to May 1, 2009.
If you don't have a Red Flag program in place, get one. It isn't hard to do but will take some work. You must have a written program in place and that program must be authenticated, or signed off on, by your board of directors or owner. A Red Flag Compliance Officer must be appointed also.
If you would like more information on Red Flag, I will be happy to share what I have. Just leave a note here or email me at kdulaney@alliancecollectionservice.com.
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