FTC Delays Red Flags Rule Until December 31
The Federal Trade Commission (FTC) has delayed the enforcement of the "Red Flags" Rule from June 1, 2010, until December 31, 2010, while Congress considers legislation that would affect the scope of entities covered by the Rule. The Red Flags Rule requires that certain entities develop and implement written identity theft prevention and detection programs to protect consumers from identity theft. The FTC has stated that physicians, physical therapists, and other health care providers must comply with the Red Flags Rule if they accept insurance and bill patients after services are provided. Originally scheduled for a November 1, 2008, compliance date, the FTC delayed the enforcement to May 1, 2009, and then again to August 1, 2009, November 1, 2009, and June 1, 2010.
The FTC has provided guidance though materials posted on a dedicated Red Flags Rule Web site, including a template that enables low-risk entities to create an identity theft program with an online form. While APTA continues to object to the application of the red flags rules to physical therapists, APTA has prepared guidance to assist members in developing an identity theft program, which is available on APTA's Web site.
APTA continues to seek legislative action to prevent application of the Red Flags Rule to PTs. HR 3763, a revised version of the APTA-supported bill HR 2345, was passed by the US House of Representatives on October 20, 2009, and referred to the Senate Committee on Banking, Housing, and Urban Affairs. This bill would exclude health care practices with fewer than 20 employees from being interpreted as creditors as outlined in the Red Flags Guidelines.
[Source: APTA NewsNow