Red Flags Rule Delayed Once Again
Once again, the FTC has delayed the implementation of the Red Flags Rule. The delay is again attributed to additional government consideration of the types of entities covered under the rule. The AMA has just filed a lawsuit to prevent the FTC from applying the rule to physicians.
Late last year, a federal court ruled that law firms were exempt from this rule. Legislation exempting lawyers, accountants and physicians are under current consideration. H.R. 3763, which would exempt healthcare, accounting and law practices with less than twenty (20) employees, was passed by the House of Representatives in October 2009. Senate bill S. 3416, virtually the same bill, is currently under consideration.
If the issues can be resolved, the Red Flags Rule will take effect December 1, 2010.