FTC delays Red Flags Rule enforcement until Nov. 1
July 30, 2009The Federal Trade Commission (FTC) has delayed the enforcement date of the Red Flags Rule until Nov. 1. This regulation requires creditors and financial institutions to develop identity theft prevention programs.
Last summer, the FTC announced that it would consider health care providers to be creditors when they accept insurance and bill patients after services are rendered for amounts that insurance does not pay, or if they regularly allow patients to set up payment plans after services have been rendered. It was originally scheduled to begin enforcing the requirement Nov. 1, 2008, but due to concerns expressed by the Medical Group Management Association (MGMA) and others in the health care community, it extended the date to May 1 and then to Aug. 1.
The new effective date: November 1, 2009. According to the FTC announcement, "...the Federal Trade Commission staff will redouble its efforts to educate them (small businesses) about compliance with the "Red Flags" Rule and ease compliance by providing additional resources and guidance to clarify whether businesses are covered by the Rule and what they must do to comply."
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