HC Reform Update from Mark Sanna: The Red Flags Rule requires creditors and certain businesses to develop and implement written identity theft prevention programs to help identify, detect and respond to patterns, practices or specific activities that could indicate identity theft. This week the House of Representatives passed S3987 that clarifies the definition of a creditor and in effect would exempt health care providers from the Red Flags Rule. The President is expected to sign the bill before the Red Flags Rule goes into effect on January 1, 2011.