Court Throws Out "Red Flag Rule" For Physicians

There was good news today for physicians nationwide when a Court of Appeals decision in Washington, DC, gutted the Federal Trade Commission's (FTC) effort to subject physicians to the "Red Flags Rule." 

The issue goes back to 2007 when the FTC issued the regulations requiring creditors to implement programs to protect consumers from identity theft.  While regulations didn't specifically state whether physician practices were subject to the Red Flags requirements, the FTC indicated its intent to do so. 

The AOA and OOA combined efforts with the whole medical community to successfully delay implementation of the Rule five times and pursued federal legislation to clarify that physicians are not creditors and therefore not subject to the Red Flags Rule.  In addition, the AOA and OOA were parties to this latest federal lawsuit which proved successful.

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