FTC Exempts Physicians from Red Flags Rule on Temporary BasisWritten by Lindsey Dunn | June 29, 2010
The Federal Trade Commission will temporarily exempt physicians from the Red Flags Rule, which is scheduled to go into effect on Dec. 31 after several delays, according to a report by AHA News Now.
The Red Flags rule requires any creditor with "covered" accounts, including hospitals and surgery centers, to develop and implement written identity theft prevention programs to help identify, detect and respond to "red flags" that could indicate identity theft.
The FTC has temporarily exempted physicians from the Dec. 31 enforcement date due to an ongoing lawsuit involving the application of the rule to attorneys, who are considered somewhat similar, under the rule, to physicians. The American Bar Association filed the suit arguing the rule should not be applied to attorneys, and a U.S. District Court ruled in the ABA's favor in November. The FTC has appealed the decision, but has agreed not to enforce the rule for physicians until a final decision is rendered, according to the report.
A separate suit was filed by the American Medical Association, American Osteopathic Association and Medical Society of the District of Columbia in May arguing for an exception for physicians specifically.
Read the AHA News Now report on the Red Flags Rule exemption.
Read other Becker's coverage on the Red Flags Rule.
FTC Delays Enforcement of Red Flags Rule
Health Organizations Call on FTC to Exclude Healthcare Professionals From Red Flags Rule
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