Red Flag Rule Becomes Effective May 1, 2009
Physical therapists and other providers who provide services to patients without requiring those patients to pay in full at the time of service will need to comply with new “Red Flag Rules” on May 1.
Red Flag rules require the development of a written Identity Theft Prevention Program. Medical identity theft refers to situations when someone uses a person’s name and other parts of their identity, such as insurance information, without the person’s knowledge or consent to obtain medical services or goods.
The Federal Trade Commission (FTC) has indicated that these rules will apply to physicians, other health care professionals, and providers.
With the May 1 deadline fast approaching, the American Medical Association has requested the FTC to suspend application of the red flag rules to physicians and other health care professionals.
Source: American Physical Therapy Association’s PT Bulletin Online, current issue.
A copy of the FTC letter on the red flag rules is available at http://www.ftc.gov/os/closings/staff/090204amaresponse.pdf
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