FTC Again Delays Implementing “Red Flag Rules” Until November 1, 2009
Those ACR members and other physicians have more time to comply with the Federal Trade Commission’s controversial “Red Flag Rules.” FTC announced it would delay enforcing the Rules until November 1, 2009. As ACR previously reported, the Red Flag Rules will require ACR members and other physicians deemed as “creditors” of patients who have “covered accounts” with them to develop and implement an identity theft prevention program. FTC plans to apply the Rules to any radiologist or radiation oncologist who renders care and bills a patient’s insurer for reimbursement or otherwise accepts payment from the patient at a later time, such as with a credit card or from a checking or savings account. The American Medical Association has indicated, though, that it will try to persuade FTC that physicians should not be treated as “creditors” under the Rules.
Here is the link to FTC’s news release announcing the additional delay: http://www.ftc.gov/opa/2009/07/redflag.shtm. FTC stated it would launch a “business education” campaign and give business entities, particularly small businesses or those that may have a low risk of identity theft, additional compliance materials on the Rules.
The May 2009 issue of the ACR Bulletin features an article on the Red Flag Rules on pages 26-27. Please call ACR’s Legal Department at 800-227-5463, ext. 4044 with any questions about the Rules and what they mean to your practice.