FTC “Red Flags” Regulations:
Implementation Delayed Again

By: Justin Vaughn, M.Div, CPC
Director of Compliance

The Medical Group Management Association (MGMA) has announced today that the Federal Trade Commission (FTC) is delaying yet again the implementation date of the “Red Flags” rule.  Slated to become effective on June 1, 2010, the FTC has, at the request of Congress, pushed back the effective date of the rule until Jan 1, 2011.

This is the latest in a series of implementation delays that are due in part to the continuing debate over whether or not a medical practice falls under the regulatory definition of “creditor.”  According to the FTC, entities so designated must follow the Red Flags rule, which among other requirements mandates the creation of policies and procedures aimed at limiting identity theft.

So, once more, anesthesia groups can breathe a temporary sigh of relief.  Thank you, and have a wonderful Memorial Day weekend!

The information presented herein reflects general information that is current as of the date it is first published.  In light of changes that may occur in the health care regulatory and compliance environments, the author's presentation of this information and any general advice previously published might become outdated.  Please check with your individual legal and/or compliance advisor(s) prior to taking any significant actions based upon the information and advice presented.