U.S. House: Red Flags Rule does not apply to dentists
In a remarkable 400-0 vote, the U.S. House of Representatives exempted dentists from the requirements of FTC's Red Flags Rule. The measure garnered rare, unambiguously bi-partisan support in Congress:
It is obvious that physicians and dentists are not creditors, and they should not be forced to spend hundreds of dollars to comply with this needless regulation," said dentist/Rep. Mike Simpson (R-Idaho), one of the key sponsors of the bill. "They don't require full payment at the time of service because they first bill the insurance company, then they bill the patient the remainder of the bill. This system should not be treated the same as a loan with a financial institution," said Congressman Simpson.
Rep. John Adler (D-N.J.), the bill's chief sponsor, said the FTC "went too far. During these tough economic times, the federal government should not be placing burdensome regulations on small businesses."
"By passing this fix today, Congress can provide the FTC a clear definition of how Congress intended the policy to be enacted and protect small businesses and their customers from unnecessary government intervention," said Rep. Christopher Lee (R-N.Y.), a cosponsor.
"In my opinion, the manner in which this legislation was crafted, with input from both sides of the aisle, with the FTC and with the various sectors that would be adversely affected if we had not acted, is the model for how this House can work to actually solve the problems facing our country," said Rep. Paul Broun (R-Ga.), a physician who cosponsored the measure.
The American Dental Association is not finished with the Red Flags Rule yet:
The Association is seeking similar Senate legislation to assure final congressional passage and enactment of a law providing an exclusion from Red Flags identity theft guidelines for certain businesses including "a health care practice with 20 or fewer employees," which means most private practice dental offices.
Are dentists the most powerful people in Washington?
"U.S. House passes ADA-backed Red Flags exemption legislation," ADA Press Release (October 21, 2009).
