Sunday, March 15, 2009

Red Flags Rule and Hospitals

U.S. erecting barriers to ID theft This spring, health-care providers will be required to install new safeguards against identity theft that federal regulators say can help control rising health costs and protect against potentially fatal information that has corrupted thousands of medical records.

"Say someone uses my health insurance to obtain care; I'm diabetic; they're not. Suddenly my records are corrupted because they've received treatment that would be inconsistent with the treatment that I'd expect in my medical condition," said Betsy Broder, an assistant director at the Federal Trade Commission, which will oversee the new "red flags rule" that also applies to banks and other creditors.

The measures could include using staff to screen new patients and track down victims to ensure their records are accurate, Broder said. A hospital's strategy should depend on its risk for identity theft, she said. (Full text at www.chicagotribune.com)


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