If you've been scrambling to put a patient identity theft prevention policy in place before May 1, take a deep breath. The evening before the Red Flag Rule was due to go into effect, the Federal Trade Commission (FTC) announced that it will put a three month hold on the rule. The new deadline is Aug. 1.
This is the second time the rule has been put on hold. It was originally supposed to kick in on Nov. 1, 2008.
"Given the ongoing debate about whether Congress wrote this provision too broadly, delaying enforcement of the Red Flags Rule will allow industries and associations to share guidance with their members ... and give Congress time to consider the issue further," said Jon Leibowitz, FTC Chairman in a news release, which you can view here: FTC Will Grant Three-Month Delay of Enforcement of ‘Red Flags' Rule