Federal Trade Commission's (FTC) Red Flags Rule

Latest news on the Red Flags Rule 

Court rules on definition of “creditor”

In the latest development in the long debate over enforcement of the Red Flags Rule, the D.C. Circuit Court has ruled that the Federal Trade Commission’s (FTC’s) definition of a creditor as any entity that defers payment is no longer valid. Read more.

For more news on the Red Flags Rule and other health care issues, visit the Washington Connexion Archive.

Red Flags Rule Advocacy 

MGMA has long been concerned about the FTC’s assertion that most healthcare providers are creditors subject to the Red Flags Rule. This interpretation was offered after the Red Flags Rule was finalized, preventing the physician community from providing input. Since this was announced, MGMA has consistently worked to delay and/or overturn the Rule.

• New law limits "creditors" subject to Red Flags Rule
  Dec. 18, 2010
• MGMA and others filed a motion to intervene in a lawsuit pending against the FTC relating to the Red Flags Rule
  Aug. 18, 2010
• Coalition letter to the FTC objecting to its interpretation of "creditors" 
  Feb. 23, 2009
• FTC's letter reasserting its position that healthcare providers are "creditors" 
  Feb. 4, 2009
• FTC notice of the Red Flag rules enforcement delay
  Oct. 22, 2008
• Coalition letter asking for clarification of the FTC Red Flags rules application
  Sept. 24, 2008

Background on the Red Flags Rule

• Read the Red Flags Rule Summary
  Get the background and the basic requirements of the rule, including guidance from the FTC in its appendix to the rule.
  
• The FTC's Web site is dedicated to Red Flags guidance. The FTC's Feb. 4, 2009 letter  also provides an indication of how the FTC sees the rule affecting healthcare providers. Have questions? Contact the FTC at redflags@ftc.gov.

  Fighting Fraud with the Red Flags Rule: A How-To Guide for Businesses

  Complying with the Red Flags Rule: A Do-It-Yourself Prevention Program for Businesses and Organizations at Low Risk for Identity Theft
  
  FAQs

• Sample procedures in MGMA format 
  To get you started as you adapt various identity theft prevention procedures into MGMA format. This is not to be taken as a complete compliant program. As you develop your program, we recommend you consult the MGMA summary, the FTC’s Web site, Appendix A, and the AMA sample policy.
  Updated: Oct. 23, 2009
  
• Red Flag Alert Resource Guide
  Buy a complete set of downloadable documents for your practice, including a detailed analysis, a sample board resolution approving the identity theft program, sample staff training slides and others. Published by the American Health Lawyer's Association. MGMA members get the AHLA's member price of $99.
  
• American Medical Association (AMA) identity theft prevention, detection and Red Flags Rule compliance   
  Sample policy available to MGMA members by the AMA
  
• What you need to know about the Red Flags Rule
  The physician perspective on Red Flags, available to MGMA members by the AMA
  
• Complete text of the Red Flags Rule (including Appendix A)
  
• Complete multi-agency Federal Register issuance on the Red Flags Rule, including commentary, text of the rule, and Appendices (59 pages)