Appeals Court Ruling Puts an End to ‘Red Flag’ Controversy for O&P

Good news from the District of Columbia’s Circuit Court of Appeals this week.  The court dismissed the case, ruling that the Clarification Act passed by Congress late last year, effectively rendered the case moot.  As a result, physicians, including O&P Practitioners, no longer need to worry about “red flag” rules put forward by the Federal Trade Commission.

A federal appeals court has dismissed a lawsuit centering around a rule that would require physicians to adhere to insurance fraud monitoring programs in their practices or face a steep fine.

The ruling effectively puts an end to several years of controversy over the Federal Trade Commission’s so-called “red flag rule,” which deemed doctors as “creditors” because they bill for their services and collect money later.

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