New bill would exempt small healthcare providers from 'red flags' rule

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New bill would exempt small healthcare providers from 'red flags' rule
New bill would exempt small healthcare providers from 'red flags' rule

Certain healthcare facilities would be exempt from federal the "red flags" rule under legislation recently introduced in the House of Representatives.

The bill, H.R. 3763, would exempt healthcare, legal and accounting practices that employ fewer than 20 people from the rule. Other provisions in the bill would allow for exemption based on the following criteria: if a business knows all of its customers or clients individually, if a business only performs services in or around the residences of its customers, or if a business has not experienced incidents of identity theft and identity theft is rare for businesses of that type. The rule requires any business defined as a "creditor" to establish a program that protects consumers from identity theft and fraud.

The Federal Trade Commission has set an implementation for the rule of Nov. 1. Both the American Medical Association and the American Bar Association have pushed for their members not to be included under the rule. The bill, which was introduced Oct. 8, could be voted on as soon as Wednesday, according to news reports.