Red Flags Rule-Update

On Nov. 9, 2007, the Federal Trade Commission (FTC) issued a final regulation implementing the Fair and Accurate Credit Transactions (FACT) Act of 2003, which requires financial institutions and creditors to develop and implement written identity theft programs (Red Flags programs). Neither the FACT Act nor the final rule issued by the FTC specifically mentions health care professionals as creditors. Nonetheless, the FTC determined that health care professionals should be covered under this law and must implement a Red Flags program by Jan. 1, 2011.

This past Tuesday, Nov. 30, the U.S. Senate moved quickly and in bipartisan action to exempt certain businesses, including dental practices, from the FTC’s Red Flags Rule. This bill, S. 3987 (the Red Flag Program Clarification Act of 2010), is now pending in the House and may be considered on Monday, Dec. 6.  However, AGD has been advised that the House may not act on the bill. We need you to act now to urge your member of Congress to ask that the House leadership to schedule a vote and to vote YES on S. 3897.