Health Insurance Portability and Accountability Act (HIPPA) Practice Exam

Which one of the following is considered a Business Associate under HIPAA?

1. Medical billing and collections company.

2. Medical transcriptions company.

3. IT Consultant.

4. All of the above.

The correct answer is: All of the above.

A Business Associate under HIPAA is defined as a person or entity that performs certain functions or activities on behalf of a covered entity that involves the use or disclosure of protected health information (PHI). All the options provided meet this definition. A medical billing and collections company processes billing information and may handle PHI in that context. Therefore, they are considered a Business Associate because their work involves using PHI to carry out their services. A medical transcriptions company takes audio recordings from healthcare providers and transcribes them into written documents, which often contain PHI. Hence, their role directly involves handling protected health information, classifying them as a Business Associate. An IT consultant provides services related to the management and security of information systems that may store or transmit PHI. If those services include access to or support with PHI, this entity is also classified as a Business Associate. Since all the mentioned entities—medical billing, medical transcriptions, and IT consultancy—handle protected health information in the course of their services to healthcare providers, they are all accurately categorized as Business Associates under HIPAA. Therefore, the comprehensive answer encompasses all of the options presented.