Law­suit seeks to block docs from ‘red flags’ rule

Modern Healthcare - - Late News -

Ar­gu­ing that it places physi­cian prac­tices un­der the same reg­u­la­tions as banks, credit card com­pa­nies and mort­gage len­ders, a law­suit was filed in fed­eral court in Washington seek­ing to block the Fed­eral Trade Com­mis­sion from im­pos­ing on doc­tors its “red flags” rule that deals with pre­vent­ing, de­tect­ing and mit­i­gat­ing iden­tity theft. The law­suit, filed by the Amer­i­can Med­i­cal As­so­ci­a­tion, Amer­i­can Os­teo­pathic As­so­ci­a­tion and Med­i­cal So­ci­ety of the District of Columbia, states that the rule re­quires “fi­nan­cial in­sti­tu­tions” to im­ple­ment a writ­ten iden­tity-theft pre­ven­tion and de­tec­tion plan and notes that the FTC had an­nounced that the physi­cians had un­til June 1 to com­ply. “In ap­ply­ing the red flags rule to physi­cians who do not re­quire pay­ment in full at the time of pro­vid­ing care to pa­tients, the FTC is ex­ceed­ing its statu­tory author­ity and act­ing ar­bi­trar­ily and capri­ciously,” ac­cord­ing to the law­suit.

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