HIPAA Covered Entity


A HIPAA Covered Entity refers to organizations or individuals that must comply with the Health Insurance Portability and Accountability Act (HIPAA) regulations. These entities primarily include healthcare providers, health plans, and healthcare clearinghouses that transmit, process, or store protected health information (PHI) electronically. Their compliance with the HIPAA Privacy and Security Rules is essential to ensure the confidentiality, integrity, and availability of PHI.


The phonetics of the keyword “HIPAA Covered Entity” are:Hip-uh kuhv-erd en-ti-tee

Key Takeaways

  1. HIPAA Covered Entities include healthcare providers, health plans, and healthcare clearinghouses that transmit health information electronically.
  2. These entities must comply with HIPAA Privacy and Security Rules to safeguard the Protected Health Information (PHI) of their patients or clients.
  3. HIPAA Covered Entities are required to provide individuals with access to their PHI and implement safeguards to ensure its confidentiality, integrity, and availability.


The term HIPAA Covered Entity is important because it identifies organizations and individuals that must adhere to the Health Insurance Portability and Accountability Act (HIPAA) regulations to ensure the privacy, security, and proper handling of protected health information (PHI). Covered entities include healthcare providers, health plans, and healthcare clearinghouses, who all play critical roles in maintaining the confidentiality and integrity of sensitive patient data.

By understanding and complying with HIPAA requirements, covered entities not only protect patients’ privacy rights but also minimize their own liability risks, fostering trust among patients and the healthcare ecosystem, and ultimately promoting an efficient, safe, and secure exchange of vital health information.


The Health Insurance Portability and Accountability Act (HIPAA) Covered Entity refers to entities that play a crucial role in the possession, management, and transmission of protected health information (PHI). The purpose of establishing HIPAA Covered Entities is to ensure the privacy and security of individuals’ health information, promote accountability in sharing confidential health data, and streamline the healthcare industry by imposing standardized methods for the handling of sensitive records. Under the statute, covered entities mainly include healthcare providers, health plans, and healthcare clearinghouses, all of which contribute to safeguarding patients’ rights to privacy and giving them control over their own health information.

HIPAA Covered Entities are essential in the healthcare landscape as they give effect to the Privacy and Security Rules that regulate the disclosure and usage of PHI. By defining the criteria for entities and organizations that deal with PHI as covered entities, the law seeks to create good practices in data handling and mitigating instances of unauthorized access to sensitive health records.

These entities are required to be compliant with HIPAA regulations in all aspects, including administrative, physical, and technical safeguards. While delivering services, covered entities are entrusted with the responsibility of avoiding unnecessary disclosures, providing access to patients’ records only when appropriate, and strictly following data breach notification procedures.

Ultimately, this ensures a consistent, secure, and reliable healthcare environment that upholds the privacy and well-being of patients.

Examples of HIPAA Covered Entity

Large Hospital System: A large hospital system represents a HIPAA covered entity, as they provide a wide range of healthcare services, maintain and manage the healthcare records of their patients, and transmit healthcare data electronically. They are required to comply with HIPAA regulations and protect the privacy and security of patient information. An example of a large hospital system is the Mayo Clinic.

Health Insurance Company: Health insurance companies, like Blue Cross Blue Shield or Aetna, process and manage health insurance claims and related information. As they work with the healthcare records and personal information of millions of people, they are considered HIPAA covered entities and must adhere to HIPAA standards to safeguard the privacy of their members’ information.

Pharmacy: Pharmacies, both independent and major chains like Walgreens and CVS, manage and distribute prescription medications and related services. They handle sensitive patient information, such as medical history, prescription details, and insurance data. As a result, pharmacies qualify as HIPAA covered entities and are required to follow the privacy and security regulations outlined by HIPAA.

HIPAA Covered Entity FAQ

What is a HIPAA Covered Entity?

A HIPAA covered entity is any organization that is subject to the Health Insurance Portability and Accountability Act (HIPAA) privacy and security rules. These organizations include healthcare providers, health plans, and healthcare clearinghouses that transmit, receive, or maintain protected health information.

Why is it important to be a HIPAA Covered Entity?

Being a HIPAA covered entity ensures that an organization complies with federal regulations to protect the privacy and security of patients’ health information. Compliance with HIPAA ensures that sensitive health information is handled securely and reduces the risk of unauthorized access, breaches, or fraud.

How do you determine if an organization is a HIPAA Covered Entity?

To determine if an organization is a HIPAA covered entity, consider if it falls into one of the following categories: healthcare providers who transmit health information electronically, health plans that provide or pay for medical care, or healthcare clearinghouses that process health information.

What are the key responsibilities of a HIPAA Covered Entity?

Key responsibilities of a HIPAA covered entity include implementing safeguards to protect health information, ensuring proper handling and disclosure practices, providing patients access to their health records, and maintaining documentation of policies and procedures related to HIPAA compliance.

What are the consequences of not being a HIPAA Covered Entity when required?

Non-compliance with HIPAA regulations can lead to significant penalties and fines. The Office for Civil Rights is responsible for enforcement of HIPAA, and they may impose civil monetary penalties or refer cases to the Department of Justice for potential criminal prosecution. Penalties can range from $100 to $50,000 per violation, depending on the severity and intent of the non-compliance.

Related Technology Terms

  • Protected Health Information (PHI)
  • Healthcare Clearinghouse
  • Healthcare Providers
  • Health Plan
  • Electronic Data Interchange (EDI)

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