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Congress Passes Bill That Helps Clarify Scope of Red Flags Rule

For immediate release:
Dec. 7, 2010

Statement attributable to:
Cecil B. Wilson, MD
President, American Medical Association

“New legislation passed by Congress sheds some much needed light on who is considered a creditor under the red flags rule. Currently, the Federal Trade Commission has broadly defined creditors to include physicians and other professionals like dentists and lawyers under the red flags rule. The AMA is pleased that this legislation supports AMA’s long-standing argument to the FTC that physicians are not creditors. This bill will help eliminate the current confusion about the rule’s application to physicians. 

“The AMA has worked closely with FTC officials and Congress and is engaged in a lawsuit with other physician groups to get the FTC to permanently remove physicians from the scope of the red flags rule. AMA’s efforts have made a difference for physicians, with five delays of the red flags rule implementation date already. We hope that the FTC will now withdraw its assertion that the red flags rule applies to physicians.”



Katherine M. Hatwell
AMA Media Relations

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