Health Insurance Portability and Accountability Act (HIPPA) Practice Exam

The term "covered entity" under HIPAA refers specifically to those organizations or individuals that are legally obligated to comply with HIPAA regulations regarding the protection of protected health information (PHI). This includes healthcare providers who transmit health information electronically, health plans (which encompass insurance companies), and healthcare clearinghouses. Therefore, the correct choice highlights that it is the entities that handle PHI and are directly involved in the treatment, payment, or healthcare operations that fall under the regulations of HIPAA. These covered entities must ensure the confidentiality, integrity, and security of PHI, following the stringent requirements set by HIPAA.

While other options mention categories of individuals or organizations related to healthcare, they do not encompass the full scope of what constitutes a covered entity under HIPAA. Thus, this definition is critical for understanding which parties must adhere to HIPAA compliance standards.