By Andis Robeznieks / HITS staff writer

(June 28, 2010) - Just in case one official delay was not enough, the Federal Trade Commission announced that it has agreed to add another layer of postponement to its enforcement of the "red flags" rule which puts physician offices in the same category as banks, credit card companies and other financial institutions that are required to provide written strategies for identity-theft mitigation and prevention.

On May 31, the FTC announced it would delay enforcement through Dec. 31 while Congress considers legislation that would exempt physician, attorney and accounting offices with fewer than 20 employees from having to comply with the rule. On June 25, it was announced that the FTC had reached a joint legal stipulation with three medical societies that had filed a lawsuit against the agency stating that it would not pursue enforcement of the rule until after the U.S. Court of Appeals in Washington reviews a trial court decision in which the American Bar Association successfully blocked implementation of the rule for legal offices.

The lawsuit, which seeks to block implementation of the rule for medical offices, was filed by the American Medical Association, the American Osteopathic Association and the Medical Society for the District of Columbia on May 21. The FTC was due to file an answer to the lawsuit by July 20, but that date has been put off until 60 days after the case is reopened - if it reopens.

In a Dec. 2009 ruling in the case with the ABA, Judge Reggie Walton wrote, "The commission not only seeks to extend its regulatory power beyond that authorized by Congress, but it also untimely and arbitrarily selects monthly invoice billing as the activity it seeks to regulate."

During a June 14 speech at the AMA House of Delegates meeting, FTC Chairman John Leibowitz told physicians that, at the FTC, "We do feel your pain" regarding the rule.

For more information about HIPAA compliance and the Red Flags Rule, send an email to Info@BridgeFront.com or call (866) 447-2211.

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