Health Insurance Portability and Accountability Act (HIPPA) Practice Exam

Under HIPAA, a covered entity (CE) is defined as:

1. A health plan.

2. A health care clearinghouse.

3. A health care provider engaged in standard electronic transactions covered by HIPAA

4. All of the above

The correct answer is: All of the above

Under the Health Insurance Portability and Accountability Act (HIPAA), a covered entity encompasses various types of organizations and professionals that handle protected health information (PHI). This includes health plans, health care providers, and health care clearinghouses. A health plan refers to any organization that provides or pays for the cost of medical care, including private insurers, Medicare, and Medicaid. Health care clearinghouses are entities that process nonstandard health information received from another entity into a standard format or vice versa. These entities play a crucial role in the health care system by facilitating the exchange of information between providers and payers. Additionally, health care providers that engage in standard electronic transactions, such as submitting claims or receiving payments electronically, are also defined as covered entities. This can include hospitals, physicians, clinics, and other organizations that provide medical services. Since all of these definitions fall under the umbrella of covered entities as outlined by HIPAA, the inclusion of health plans, health care clearinghouses, and health care providers under this category justifies the conclusion that all mentioned types are indeed covered entities. Therefore, selecting the broad option that incorporates all three accurately reflects the comprehensive nature of HIPAA's definition.