FTC to delay 'red flags' enforcement until Nov. 1

The Federal Trade Commission has decided to once again postpone the implementation of the “red flags” enforcement rule. The rule will now take effect on November 1st. This rule will require physicians and hospitals to adopt written plans for tracking and responding to indicators of identity theft in their billing operations.

This is the third time the FTC has changed the date, and the agency is again promising additional resources and guidance to help businesses understand if the rules apply to them and how to comply. In the FTC's view, hospitals and physicians are creditors for the purposes of the rule because they accept deferred payment for their services. The AMCNO has sent out detailed information to our members regarding compliance with the “red flags” rule in previous publications. The FTC has also created a web site dedicated to informing businesses about their obligations under the rule. To view the site go to http://www.ftc.gov/bcp/edu/microsites/redflagsrule/faqs.shtm