Red Flags Rule Delayed for Fifth Time

WASHINGTON — The Federal Trade Commission has once again
postponed enforcement of the so-called Red Flags rule from June 1
until Dec. 31, 2010.

The rule is an anti-fraud regulation requiring “creditors” and
“financial institutions” with covered accounts to implement
programs to identify, detect and respond to the warning signs, or
“red flags,” that could indicate identity theft. HME providers and
other health care professionals who collect patient information for
the purposes of billing, copayments and deductibles are considered
“creditors” under the rule.

The rule was originally set to be implemented Aug. 1, 2009, but
has been delayed four previous times
since.