The Federal Trade Commission announced that it will further delay the enforcement of its so-called "Red Flags" rule until a federal appeals court rules on a lawsuit filed by the American Bar Association, Health Data Management reports (Goedert, Health Data Management, 6/28).
Background
The FTC rule designates physician offices and certain other businesses as creditors, thus requiring them to submit written identity theft mitigation and prevention strategies (Robeznieks, Modern Healthcare, 6/28).
Last year, a federal district court rule in favor of ABA, exempting attorneys from the Red Flags rule (Health Data Management, 6/28).
On May 21, the American Medical Association, American Osteopathic Association and Medical Society for the District of Columbia filed a lawsuit seeking to exempt medical offices from having to comply with the rule (Modern Healthcare, 6/28).
Prior Delays
On May 28, FTC announced that it would delay enforcement of the Red Flags rule for the fifth time, pushing back the compliance deadline from June 1 to Dec. 31 (iHealthBeat, 6/1).
The latest delay was designed to give lawmakers time to consider legislation (S 3416, HR 3763) that would exempt certain small businesses -- including physician offices with fewer than 20 employees -- from the rule (Modern Healthcare, 6/28).
Agreement With Physician Groups
On Friday, FTC announced a joint legal stipulation with AMA, AOA and the Medical Society for the District of Columbia that places the groups' lawsuit on hold until the federal appeals court issues its ruling on the ABA case.
FTC was scheduled to answer to the physician groups' lawsuit by July 20, but that date has been delayed until 60 days after the "re-opening date," when the federal appeals court rules on the ABA case.
FTC also has agreed to delay enforcement of the rule for physicians for an additional 90 days after the re-opening date (Health Data Management, 6/28).