Carded for your care? Docs begin checking IDs
New FTC rule requires physicians, hospitals to help deter identity theft
Ms. “Castro was finishing the paperwork to buy her first home when the bank called to warn her of a problem – nearly $10,000 in unpaid hospital bills on her credit report. The charges were for several ear, nose and throat procedures done at hospitals in her region. But they weren’t for her.”
She was an insured medical student, and the charges had been there for several years. A thief had used her personal data to get medical care.
With a stolen name, social security number and date of birth, someone can walk into a doctor’s office and receive services billed to someone else. The FTC hopes to address this problem with new regulations called the “Red Flags Rule”. This rule required doctors, hospitals, and other businesses to create procedures to spot theft.
Doctors are now checking photo IDs, and could alert a victim prior to sending out bills. “But medical provider groups, including the American Medical Association, insist the rule is misguided. Their reasoning, in part, comes down to the actual language of the law. The statute specifies that all “creditors” – which are defined as businesses that regularly extend or renew credit – are required to implement the new protocols. The includes auto dealers, lawyers, utility companies, and according to the FTC, any physician’s office of hospital that accepts insurance or allows a payment plan.”
Doctors argue that they are not “creditors”. They state that the rule imposes an “unjustified, unfunded mandate on physicians and could have serious adverse consequences on patients’ access to health care.” There could also be an administrative burden on physicians.
Although the law went into effect November 1, 2008, beginning August 1, 2009, penalties will kick in. “Creditors – including doctors or hospitals – could be slapped with a $3,500 fine for each “knowing violation” of the rule.
Source: http://www.msnbc.msn.com/id/32175003/ns/health-health_care/
Tags: identify theft, physicians, providers