HIPAA Blog

[ Monday, March 07, 2011 ]

 

Red Flags Update: The US Court of Appeals for the DC Circuit has dismissed the ABA's case against the FTC. As you may recall, the ABA sued the FTC for implying that the Red Flags Rule applies to lawyers as "creditors" because they bill after they provide services. The AMA, on the other hand, wrote a bunch of letters. The ABA won their suit at the District Court level, while the AMA got extensions from the FTC; their last extension was until the ABA suit was settled. In December, Congress passed a law restricting the definition of "creditor" to money lenders and those who use credit reporting agencies in dealing with their clients, and the President signed it.

The appeals court looked at the new law, and figured it made the ABA argument moot. Which is correct. So, all's well that ends well.

UPDATE: I could've been more clear. The ABA lawsuit was made moot, but the AHA lawsuit, which was pending the ABA result, has now been withdrawn.

Jeff [3:42 PM]

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