Red Flags Rule Reversed for Physicians!
December, 1 2010
Yesterday, the Senate passed the Red Flag Program Clarification Act of 2010 (S. 3987), legislation that would limit the type of "creditor" that must comply with the Red Flags Rule. The intent of the legislation is to clarify that physicians should no longer be classified as "creditors" under these rules. Lobbying efforts, led by the AMA, are underway to seek House action and passage prior to the adjournment of the 111th Congress.
The Red Flags Rule requires creditors to develop identity theft prevention and detection programs, and was originally scheduled to take effect on November 1, 2008. The FTC has since delayed the compliance deadline through December 31, 2010. According to the FTC, physicians who do not accept payment from their patients at the time of service are creditors and must comply with the Rule by developing and implementing written identity theft prevention and detection programs in their practices.
Additionally, in May 2010, the AMA, AOA and Medical Society of the District of Columbia filed a lawsuit in federal court seeking to block FTC enforcement of the Red Flags Rule on physicians.
If you have any questions concerning this matter; please contact Melesia Tillman, CPC, CRHC, CHA at
