Small Healthcare Entities Need Red Flags The Most

The bill passed by the House last week, which was filed by John Herbert Adler (D-NJ), Paul Collins Broun, Jr. (R-GA), and Mike Simpson (R-ID), lets off the hook an entity that:

• Knows all of its customers or clients individually


• Only performs services in or around the residences of its customers


• Has not experienced incidents of identity theft and identity theft is rare for businesses of that type

The FTC would determine if a business meets these criteria.

Berry says the larger facilities already have a lot of checks and balances in place in order to prevent identity theft. It's the smaller entities that need to get on board.

"They are more lax than the larger ones with their internal controls," Berry says. "It's literally minutes per day to comply with this Red Flags Rule."