A federal appeals court has ruled that physicians who allow patients to pay after care is delivered don’t have to track and prevent identity theft under the federal Red Flags Rule, according to a release from the AMA.
In other words, the decision validates that “physicians who bill after rendering services are not subject to the Red Flags Rule as creditors,” the AMA stated.
The Federal Trade Commission had been pursuing physicians and other professionals who did not follow the rule. But in Dec. 2011, Congress passed the Red Flags Program Clarification Act exempting physicians, lawyers and some other professionals from the rule. Citing the new law, the AMA and the American Bar Association sued the FTC over its policy.
“The court’s decision reinforces the intent of a new law clarifying the scope of the red flag rule and helps eliminate any further confusion about the rule’s application to physicians,” the AMA stated. “The AMA will remain vigilant that the FTC respects the meaning and intent of the Clarification Act.”
Read the AMA release on physicians’ offices.
Read more coverage of the Red Flags Rule:
– House Follows Senate in Passing Physician Exemption to Red Flags Rule
– Senate Passes Bill Exempting Physicians From FTC Red Flags Rule
