Navigation Links
Health Professionals Petition FTC For Relief From Red Flags Rule
Date:1/29/2010

CHICAGO, Jan. 29 /PRNewswire-USNewswire/ -- In light of a recent federal court decision, four national organizations representing dentists, physicians and veterinarians called on the Federal Trade Commission (FTC) today to exclude health professionals from controversial new regulation intended to combat identity theft.

(Logo: http://www.newscom.com/cgi-bin/prnh/20081209/AMALOGO)

A letter sent to FTC Chairman Jon Leibowitz by leaders of the American Dental Association (ADA), American Medical Association (AMA), American Osteopathic Association (AOA) and American Veterinary Medical Association (AVMA) is the latest challenge to the so-called "red flags" rule. The FTC's interpretation of the regulation imposes an unjustified, unfunded mandate on health professionals for detecting and responding to identity theft.

The organizations asked the FTC to make it clear that the rule will not apply to their members given the result of recent litigation brought by the American Bar Association against the FTC. In that case, the U.S. District Court for the District of Columbia ruled that lawyers should be excluded from the requirements imposed by the red flags rule.

The court decision follows wide criticism that the FTC's overly broad interpretation of the Fair and Accurate Credit Transactions Act of 2003 (FACT) led the commission to create a rule that oversteps its authority. In response to these concerns, the FTC postponed the rule's effective date to June 1, but it has never changed the position that the rule will apply to health professionals.

"Congress did not intend the original red flags legislation to apply to small businesses, but rather it was intended to encourage large businesses like banks, credit firms and national retailers to implement best practices to protect customers' from identity theft," said ADA President Ronald Tankersley, D.D.S.

In its ruling against the FTC, the court said that the application of this rule to attorneys "is both plainly erroneous and inconsistent with the purpose underlying enactment of the FACT Act." The court also stated that the FTC "not only seeks to extend its regulatory power beyond that authorized by Congress," but also "arbitrarily selects monthly invoice billing as the activity it seeks to regulate."

"The court ruling sends a clear signal that the FTC needs to re-evaluate the broad application of the red flags rule," said AMA President J. James Rohack, M.D. "Our four organizations firmly believe that applying the rule to health professionals, but not to lawyers, would be unfair."

"Postponement of the rule's effective date is inadequate," said AOA President Larry A. Wickless, D.O. "Our four organizations need a commitment from the FTC that it will not apply the red flags rules to health professionals if it is not applied to lawyers."

"The burdens of complying with this rule outweigh the benefits," said AVMA President Larry R. Corry, D.V.M. "The FTC's interpretation of the FACT Act should be redefined to exclude health professionals."

For a copy of the joint letter to the FTC, please visit the AMA website at: http://www.ama-assn.org/ama1/pub/upload/mm/399/ftc-letter-red-flags.pdf

SOURCE American Medical Association

RELATED LINKS
http://www.ama-assn.org

'/>"/>

SOURCE American Medical Association
Copyright©2010 PR Newswire.
All rights reserved

Related medicine news :

1. Fake Drugs Bought on the Web Pose Big Health Risks
2. The Meadows Health Care Center Receives the Award of Excellence from the Ohio Academy of Nursing Homes
3. Win Over Their Heart in More Ways than One this Valentine's Day with a Romantic, Heart-Healthy Meal
4. Statement from the Consumer Healthcare Products Association on Mississippi Bill that Seeks to Make Cold, Allergy Medicines Containing Pseudoephedrine Prescription-Only
5. Grubb & Ellis Healthcare REIT II Enters Agreement to Acquire Highlands Ranch Medical Pavilion Near Denver
6. St. John Health System Brighton Hospital Signs Letter of Intent to Assist Saudi Arabia in Developing New Addiction Treatment Hospital in Riyadh
7. Congressional leaders urged to reach agreement on health reform
8. Catholic Health Association Comments on State of the Union and Need for Health Care Reform
9. Early Factors Predict Later-Life Stroke Risk, from the Harvard Health Letter
10. U.S. HealthWorks Appoints National Sales Director
11. Aprima and Iatric Systems Partnership Brings Electronic Health Record and Practice Management Solution to MEDITECH Providers
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:6/24/2016)... ... June 24, 2016 , ... Advanced ... 2016 Miss Arizona pageant as its official Medspa Sponsor. Dr. Josh Olson, a ... Chandler, Arizona. , Dr. Olson says the decision to support the pageant ...
(Date:6/24/2016)... ... June 24, 2016 , ... Southern Illinois ... are co-chairs for the Illinois State Dental Society (ISDS) Foundation’s Mission of Mercy ... Gateway Convention Center in Collinsville. , They expect to treat approximately ...
(Date:6/24/2016)... ... June 24, 2016 , ... Dr. Seema Daulat, a native Texan and ... South Lamar location as of July 13, 2016. , Dr. Daulat earned her Doctorate ... student, she regularly volunteered at the Agape Clinic serving Dallas’ underprivileged community. , Following ...
(Date:6/23/2016)... ... June 23, 2016 , ... vcfo, a ... support, is pleased to announce the promotion of Mike Mackey to Regional Vice ... Manager where he was responsible for managing client projects and overseeing vcfo financial ...
(Date:6/23/2016)... ... 23, 2016 , ... Virginia Beach resident Sean Kelly suffered from depression after ... to find peace and set out to accomplish a personal mission: a solo 50-mile ... internet. He came across the story of another special operations veteran, Josh Collins, whom ...
Breaking Medicine News(10 mins):
(Date:6/24/2016)... -- Dehaier Medical Systems Ltd. (NASDAQ: DHRM ... sells medical devices and wearable sleep respiratory products in ... agreement with Hongyuan Supply Chain Management Co., Ltd. (hereinafter ... 2016, to develop Dehaier,s new Internet medical technology business. ... leverage Hongyuan Supply Chain,s sales platform to reach Dehaier,s ...
(Date:6/24/2016)... According to a new market ... Needles, Safety Pen Needles), Needle Length (4mm, 5mm, 6mm, ... of Purchase (Retail, Non-Retail) - Trends & Global Forecasts ... market for the forecast period of 2016 to 2021. ... by 2021 from USD 1.65 Billion in 2016, growing ...
(Date:6/24/2016)... 24, 2016  Arkis BioSciences, a leading innovator ... more durable cerebrospinal fluid treatments, today announced it ... funding is led by Innova Memphis, followed by ... private investors.  Arkis, new financing will accelerate the ... market release of its in-licensed Endexo® technology. ...
Breaking Medicine Technology: