Health Insurance Portability and Accountability Act (HIPPA) Practice Exam

Which one of the following is Not a Covered Entity?

1. Health insurance company.

2. Healthcare provider.

3. Healthcare clearinghouse.

4. Employer.

The correct answer is: Employer.

In the context of HIPAA, a Covered Entity refers to organizations or individuals that must comply with the HIPAA regulations due to their role in handling protected health information (PHI). This includes health insurance companies, healthcare providers who transmit health information in electronic forms, and healthcare clearinghouses that process health information from one form to another. Employers, while they may have access to health information for purposes such as managing health insurance benefits or administering employee health plans, are generally not considered Covered Entities under HIPAA. They do not directly provide health care or health insurance themselves, nor do they engage in the transactions that HIPAA governs. Therefore, they do not have the same obligations to comply with HIPAA regulations as the listed Covered Entities do. Understanding the distinction between Covered Entities and non-Covered Entities like employers is crucial for comprehending the scope and application of HIPAA regulations in healthcare settings.