Red Flags Rule Deadline Moved Again

Fitting that just before our most flag waving holiday, the Red Flags rule becomes just a memory....for now. In their ever growing wisdom, the government has, once again, moved the deadline for implementation of the far reaching rules. Unintended consequences continue to pile up for the administration as they try to tighten the noose around the throat of business, make them the watch dogs of our information, and donning them with the responsibility of policing the country for the sinister types who fraudulently use our information. Is it just the cost of doing business? The most interesting thing about regulations such as the Red Flags rule, HIPPA, HITECH, and others is that on the surface they appear to be cumbersome, expensive, and a damper on business. Like most things that change it may just be that the average business hasn't looked at the business case for these regulations.

For example, the expense that is incurred to move to encrypted electronic records is now partially for paid by the HITECH act and additionally may be eligible for accelerated deduction under the current depreciation rules. In essence it could cost a healthcare business nothing but the staff learning curve to move to a system that they will benefit from for years to come. Sounds like a pretty big carrot and no stick doesn't it? Do you remember when merchants went from the clumsy credit card swiping devices that could break a customer's credit card and often pinched the fingers of the person using it? (Speaking from personal experience of course.) Businesses where adamant that they shouldn't have to shell out up to $1200 per user station to accept cards. Today, we question the merchant who still uses that "old' machine". The time has come to throw away more "old machines", use the current financial incentives to implement changes, and position your business to be ahead of the curve.

Red Flags rule, long may it wave protecting us all. For now......it appears to be at half staff.