What is a covered entity under HIPAA?

A covered entity under HIPAA (Health Insurance Portability and Accountability Act) is defined as organizations that handle personal health information, which includes healthcare providers, health plans, and healthcare clearinghouses. This designation is crucial because it encompasses any entity that deals with the creation, maintenance, or transmission of protected health information (PHI).

Healthcare providers, such as hospitals or doctors, who transmit any health information in electronic form for transactions covered by HIPAA are considered covered entities. Health plans, including health insurance companies and certain government programs, also fall into this category, as they manage private health information for their members.

The purpose of identifying covered entities is to ensure that they adhere to the HIPAA Privacy Rule, which establishes standards for the protection of PHI. Thus, understanding that covered entities include organizations that handle personal health information directly aligns with the definition and scope of covered entities under HIPAA.