Understanding Covered Entity (Health Care): Key Definitions and Insights

Definition & Meaning

A covered entity in health care refers to an organization or individual that regularly handles protected health information (PHI). Under the Health Insurance Portability and Accountability Act (HIPAA), covered entities include health plans, health care clearinghouses, and health care providers who electronically transmit health information related to billing or payment for services. Examples of covered entities are hospitals, medical clinics, and individual health care providers who send claims electronically to health plans.

Table of content

Real-world examples

Here are a couple of examples of abatement:

Example 1: A hospital that processes patient insurance claims electronically is a covered entity, as it handles PHI and transmits it to health plans.

Example 2: A physician's office that submits billing information for services rendered to patients via electronic means is also considered a covered entity.

Comparison with related terms

Term Definition
Business Associate An entity that performs functions on behalf of a covered entity that involves the use or disclosure of PHI.
Health Care Provider An individual or organization that provides medical services and is considered a covered entity under HIPAA.

What to do if this term applies to you

If you believe you are a covered entity, ensure you understand and comply with HIPAA regulations regarding the handling of PHI. Consider using US Legal Forms to access templates that can help you maintain compliance. If your situation is complex, seeking professional legal advice may be necessary.

Quick facts

  • Typical entities: Hospitals, clinics, individual providers.
  • Jurisdiction: Governed by federal law (HIPAA).
  • Compliance requirements: Must implement safeguards for PHI.

Key takeaways

Frequently asked questions

A covered entity is an organization or individual that handles protected health information and transmits it electronically.