ADA seeks exclusion from Red Flags Rule for dentists
Enforcement would 'add little benefit but would add significant costs to the delivery of dental care'
|
Posted April 6, 2009 |
By Arlene Furlong The ADA continues to challenge the Federal Trade Commission on the applicability of the Red Flags Rule to dentists.
Scheduled to go into effect May 1, the rule requires financial institutions and creditors to develop a written plan to prevent and detect identity theft. FTC staff has deemed dentists and physicians as creditors who are subject to the rule when they don't receive payment in full from their patients at the time of treatment.
Last month, ADA leaders met by telephone with the FTC, urging the agency not to apply the rule to dentists. In November 2008, the ADA submitted written commentary to the FTC about the rule and requested an exemption for dentists.
"Identity theft is generally not a problem in dental offices," ADA President John S. Findley March 4 told the FTC. "More than 80 percent of U.S. dental practices comprise only one or two dentists. In these circumstances, enforcing the rule would have very little benefit but would add significant costs to the delivery of dental care, particularly for dentists who are already feeling the effects of the bad economy."
The ADA estimates that the cost for the average dental office will be about $600. When multiplied across some 130,000 U.S. dental offices, that cost amounts to nearly $80 million.
Apart from the financial burden, Dr. Findley advised FTC staff that the requirements of the rule are contrary to the atmosphere that dentists strive to establish in their offices.
"Most dentists want to create a friendly environment which helps to promote the doctor-patient relationship," Dr. Findley told the FTC. "Some of the bureaucratic requirements that are made necessary as a practical matter by the rule, such as demanding a photo ID from every new patient or checking Social Security numbers, tend to cut directly against that objective."
The ADA also pointed out to the FTC that the rule could potentially raise conflicts with Health Insurance Portability and Accountability Act of 1996 privacy regulations, requiring some harmonization between the Red Flags Rule and HIPAA requirements.
"We believe that characterizing dentists as 'creditors' under the Red Flags Rule is contrary to the legislation on which the rule is based," said Tamra Kempf, ADA chief legal counsel. "The rule should not have been extended to dentists without giving them reasonable and meaningful notice that it was going to be applied to them and an opportunity to comment. It will result in substantial compliance costs for dentistry without providing any significant benefits."
Many in the health care sector were taken by surprise to learn from FTC-issued guidance that the rules, mandated by a 2003 fair-credit law and issued in November 2007, were intended to go beyond financial institutions to include health care providers.
As a result, the FTC delayed the original enforcement date of the rule for six months—until May 1.
While awaiting FTC response, the ADA has prepared a guide for compliance with the Red Flags Rule and a sample identity theft detection and response program, in case the FTC persists in its position that dentists are covered by the rule.
These documents can be obtained by contacting your state association, or by sending an e-mail to legaldivision@ada.org. The April 20 ADA News will provide an update on developments related to Red Flags Rule compliance and dentists.
|
