On Tuesday, Sens. John Thune (R-S.D.) and Mark Begich (D-Alaska) introduced a bill (S 3416) that would exempt certain small businesses — including physician and dentist offices — from the Federal Trade Commission’s so-called “Red Flags Rule,” which aims to minimize identity theft, Health Data Management reports (Goedert, Health Data Management, 5/26).
The FTC rule classifies physicians and other small businesses as “creditors,” thus requiring them to adopt certain measures to prevent identity theft (Rapid City Journal, 5/25).
The regulations are scheduled to take effect on June 1. Several medical associations recently filed a lawsuit to prevent federal officials from applying the rule to physicians (Health Data Management, 5/26).
Thune said FTC’s regulations “are too broad and ensnare businesses that pose little risk to consumers.” He added that S 3416 “will help small businesses avoid the costly implementation of unnecessary measures to guard against identity theft” (Rapid City Journal, 5/25).
Next Steps, Outlook
The bill was referred to the Senate Banking, Housing and Urban Affairs Committee, but a hearing has yet to be scheduled.
Last year, a similar bill (HR 3763) passed the House in a 400-0 vote (Health Data Management, 5/26).
