Health Insurance Portability and Accountability Act (HIPPA) Practice Exam

Which entities must comply with HIPAA regulations?

1. Covered Entities and Beneficiaries.

2. Covered Entities and Business Associates.

3. Business Associates and Third Parties.

4. Covered Entities and Employers.

The correct answer is: Covered Entities and Business Associates.

The correct answer identifies that both Covered Entities and Business Associates must comply with HIPAA regulations. Covered Entities include healthcare providers who transmit any health information in electronic form in connection with a HIPAA transaction, health plans, and healthcare clearinghouses. These organizations handle protected health information (PHI) and thus have strict obligations to safeguard that information and ensure its confidentiality and integrity. Business Associates are individuals or entities that perform certain functions or activities on behalf of or provide certain services to, a Covered Entity that involve the use or disclosure of PHI. Even though they are not directly responsible for providing healthcare, Business Associates are required to comply with HIPAA rules to protect PHI when they handle data on behalf of Covered Entities. This compliance includes entering into Business Associate Agreements with Covered Entities, which outline the responsibilities of all parties regarding the handling of PHI. Other options include entities which do not fall under the specific compliance mandates set forth in HIPAA. Beneficiaries are individuals receiving health benefits and do not have compliance obligations. Third Parties may not necessarily have access to PHI in a manner that requires compliance, and while employers may possess information relevant to health plans, they do not directly handle PHI as defined by HIPAA unless they are acting in the role