Home Health & Hospice Week

May 1 has come and gone -- and some providers haven't yet prepared for the government's Red Flags Rule, which was due to go into effect by then. However, the feds have offered a gift -- a three-month extension -- to home care providers that have procrastinated.

On April 30, the Federal Trade Commission, which oversees the government's implementation of the Red Flags Rule, announced the deadline extension. "The Federal Trade Commission will delay enforcement of the new 'Red Flags Rule' until August 1, 2009, to give creditors and financial institutions more time to develop and implement written identity theft prevention programs," the FTC said in a statement.

Helping hand: The FTC will also give some guidance that you may find helpful. "For entities that have a low risk of identity theft, such as businesses that know their customers personally, the Commission will soon release a template to help them comply with the law," it added.

Background: Under the Red Flags Rule, certain businesses -- including home care providers that bill patients after their services are completed -- are required to spot and heed the red flags that can be the signs of identity theft, the FTC says. The rule requires providers to develop a program that addresses identity theft prevention techniques, as well as tools to detect and deal with any identity theft incidents that may occur.

Many providers were unclear about how the rule affected them, and once they realized they fell under the rule's purview, many were slow to implement programs. The three-month extension allows providers extra time to get their programs together.

"Given the ongoing debate about whether Congress wrote this provision too broadly, delaying enforcement of the Red Flags Rule will allow industries and associations to share guidance with their members, provide low-risk entities an opportunity to use the template in developing their programs, and give Congress time to consider the issue further," FTC Chairman Jon Leibowitz said in a statement.

If you are among the procrastinators, it's time to get on board and begin developing your plan.

Don't count on the possible congressional out the FTC head hints at in the statement, experts warn.

"Considering that you have to write the plan, get it approved by your ... board of directors, make potential edits, and then share it with your staff, August 1 is not that far away," advises Atlanta attorney Allison Larro.