| Dear Colleagues,
The Federal Trade Commission (FTC) has issued another 90-day delay in the enforcement of its Red Flags Rule, which would have gone into effect Aug. 1. The FTC announced the delay, until Nov. 1, 2009, on its Web site today.
With our encouragement, a number of legislators in Congress have been asking the FTC for this further extension. We are particularly grateful to Rep. Mike Simpson (R-Idaho) for his leadership on this issue.
The rule would require financial institutions and creditors to develop written plans to prevent and detect identity theft. The FTC originally deemed dentists and physicians as creditors who are subject to the rule when they don’t receive payment in full from their patients at the time of treatment. The ADA believes that characterizing dentists as “creditors” in this context is incorrect.
Legislation introduced by Rep. John Adler (D-N.J.), H.R. 2345, would permanently exempt small health care providers from the requirements of the Red Flags Rule. This latest 90-day extension of the enforcement moratorium gives us that much more time to build support in Congress for the bill, which already has 32 co-sponsors.
Much of our success in this matter can be attributed to you for contacting your lawmakers during the Washington Leadership Conference last May and subsequently to explain your concerns about the rule. Thank you for your timely efforts. |
