"Red Flag Rules" and LCSWs

As of December 18, 2010, when President Obama signed into law the Red Flag Program Clarification Act of 2010 (Clarification Act), LCSWs are no longer required to comply with "Red Flag" Rules.

CSWA has updated members on the "Red Flag" rules over the past two years since the Rules, which originally applied to LCSWs, went into effect.

These Rules were intended to prevent identity theft and were very broadly conceived. Any health care provider, attorney, accountant, or other professional who did not collect full payment at the time of service was required to implement an identity theft prevention program because they were "extending credit" to the client.

The Clarification Act limits those covered by the "Red Flag" Rules to anyone who uses consumer financial reports, provides information to consumer reporting agencies, or advances actual funds toward repayment of a bill.

While this may apply to a very small group of LCSWs who fall into the above categories, it is a miniscule number compared to the thousands of LCSWs that were originally required to comply with "Red Flag" Rules, just because they were paid through insurance or billed on a monthly or other delayed basis.

This is good news for LCSWs in general, as we no longer need worry about the cumbersome and expensive requirements of "Red Flag" Rules. Please let me know if you have any questions. A Happy 2011 to all!

Laura Groshong, LICSW, Director, Government Relations
Clinical Social Work Association
lwgroshong@clinicalsocialworkassociation.org
www.clinicalsocialworkassociation.org