The proposed bill would exempt small doctors and other professionals from new identity theft laws
A proposed bill currently in the Senate would exempt small healthcare, accounting and legal businesses from the Federal Trade Commission’s pending Identity Theft Red Flag Rules.
The legislation would exempt organizations in those areas with 20 or fewer employees from following the new FTC rules, which are aimed to prevent identity theft.
Under the new rules, employees will undergo training to notice the signs of identity theft, and be required to check a person’s ID on many purchases. The rules apply to any business that performs services upfront, but allows for payment after the fact, including doctors, car dealerships, and real estate agents.
Officials say some of the "red flags" include undelivered patient mail, altered insurance or ID cards, or customers using another person’s credit card.
After a number of delays, the rules are set to go into effect on June 1. The American Medical Association has a pending lawsuit attempting to gain an exemption for all doctors – saying they already comply with complicated HIPAA laws and other security rules.
The bill was sent to the Senate Banking, Housing and Urban Affairs Committee, which does not have a meeting scheduled before the deadline. HealthcareInfoSecurity.com says a similar bill was unanimously passed by the House last year, but the Senate failed to act on it.
Related ID News:
- FTC’s ‘Red Flag’ identity theft deadline quickly approaching
- Nevada committee delays action on Real ID legislation
- Illinois bill would make utility companies check ID
- Checking photo IDs helps prevent growing medical identity theft
- Controversial new plastic ID card legislation swirling through Washington
