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CMSS Joins 'Red Flags Rule' Lawsuit Against FTC

Cheryl Clark, for HealthLeaders Media, August 18, 2010

Norman Kahn, MD, executive vice president and CEO of CMSS, says that if the rule applies to its members, it "would substantially drain the financial resources of physicians, particularly those whose support systems are limited."

Also, groups opposing the rule claim it is not appropriate for certain practices.

"A plan for a physician who serves in a rural area in which patients are well-known will be different from one for a physician in a large group in an urban area," the CMSS said in its statement. Time required to comply with the rule will "necessarily detract from the attention physicians are able to give their patients."

In the latest postponement, the FTC said the delay will allow Congress to consider legislation that would affect the scope of entities covered by the rule."

In a statement in June, FTC Chairman Jon Leibowitz said, "Congress needs to fix the unintended consequences of the legislation establishing the Red Flags Rule—and to fix this problem quickly." He added, "As an agency we're charged with enforcing the law, and endless extensions delay enforcement."

Cheryl Clark is senior quality editor and California correspondent for HealthLeaders Media. She is a member of the Association of Health Care Journalists.

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