On Friday, the Federal Trade Commission announced that it has delayed enforcement of its so-called "Red Flags Rule" for the fifth time, pushing back the compliance deadline from June 1 to Dec. 31, HealthLeaders Media reports (Nicastro, HealthLeaders Media, 6/1).
The FTC rule classifies physicians and other small businesses as "creditors," thus requiring them to adopt certain measures to prevent identity theft.
Senate Bill
Last week, Sens. Mark Begich (D-Alaska) and John Thune (R-S.D.) introduced a bill (S 3416) that would exempt certain small businesses -- including physician offices with fewer than 20 employees -- from the rule's requirements. The House passed similar legislation (HR 3763) in October (Robeznieks, Modern Healthcare, 5/28).
According to an FTC statement, the delay will give congressional lawmakers time to consider legislation "that would affect the scope of entities covered by the rule" (Clark, HealthLeaders Media, 6/1). FTC also urged lawmakers to pass legislation that would "resolve any questions as to which entities are covered by the rule and obviate the need for further enforcement delays" (Health Data Management, 5/28).
If Congress passes a bill that sets the Red Flags Rule's compliance deadline earlier than Dec. 31, FTC will begin enforcing the rule on the earlier date, officials said (Merrill, Healthcare IT News, 5/28).
Lawsuit
On May 21, the American Medical Association, American Osteopathic Association and the Medical Society of the District of Columbia filed a lawsuit in federal court challenging the decision to classify physicians as "creditors" because they allow patients to defer payments.
The medical groups also said the implementation of the Red Flags Rule could threaten doctor-patient relationships and negatively affect patient care (Sorrel, American Medical News, 5/31).