HIPAA Covered Entity Types and Compliance

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A healthcare provider is a HIPAA covered entity, responsible for protecting patient health information. This includes doctors, clinics, hospitals, and other medical facilities.

Covered entities must comply with HIPAA regulations, which require them to implement administrative, technical, and physical safeguards to protect patient data. This includes ensuring confidentiality, integrity, and availability of electronic protected health information (ePHI).

HIPAA also applies to healthcare clearinghouses, which process non-standard health data into standard formats. This can include billing companies and other organizations that handle patient health information.

Health plans, such as insurance companies and HMOs, are also covered entities under HIPAA. They must protect patient health information and comply with HIPAA regulations.

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What Is an Entity?

An entity under HIPAA can be a health plan, a healthcare clearinghouse, or a healthcare provider who transmits health information electronically. This is according to the rules set by the Secretary of HHS under HIPAA (45 CFR Part 162).

Examples of entities include hospital organizations that transmit patient information electronically for billing purposes, physician practices that use electronic medical records, and health insurers that maintain online policyholder portals.

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A healthcare provider is considered an entity if they deal with protected health information (PHI) as part of their healthcare services. This includes hospitals, clinics, physicians, dentists, therapists, nursing homes, and other healthcare professionals and institutions.

Health plans encompass a broad range of entities, including health insurance companies, health maintenance organizations (HMOs), employer-sponsored health plans, and government programs like Medicare and Medicaid.

Healthcare clearinghouses serve as intermediaries in the healthcare data exchange process, ensuring that health information is transmitted efficiently and in standardized formats. They convert non-standard data into HIPAA-compliant formats, enhancing interoperability among various healthcare entities.

Here are the three categories of entities under HIPAA:

4 Types

There are four types of covered entities under HIPAA.

Health plans are one of the most common covered entities, including dental and vision plans, Medicaid, Medicare, and prescription drug plans.

Clearinghouses are important to consider, and they can be public or private entities that act as the third party between a healthcare provider and those paying for the service. They examine invoices for errors or anomalies and return them to the provider with a decision on acceptance.

Take a look at this: Hipaa Law Enforcement Exception

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Providers are the healthcare organization itself, including doctors' clinics, chiropractors, pharmacies, and other healthcare professionals.

Business associates are individuals or organizations that provide a service to a HIPAA-covered entity and would likely have access to some or all PHI provided to the originally covered entity.

Here are the four types of covered entities under HIPAA:

Special Cases and Definitions

A HIPAA covered entity is a healthcare provider, health plan, or healthcare clearinghouse that must comply with HIPAA regulations.

A healthcare provider is an individual or organization that furnishes, bills, or seeks to obtain payment for healthcare in the form of diagnosis, cure, mitigation, treatment, or prevention of disease.

Healthcare clearinghouses are entities that process non-standard health information into standard formats for easier use.

Health plans are programs that pay for healthcare services, including insurance companies and government programs like Medicare and Medicaid.

Why Understanding Matters

Understanding what a HIPAA covered entity is crucial because the definition hasn't changed since 1996, but the way healthcare is delivered and paid for has.

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The healthcare industry's business models have become more diverse, making it harder to determine if an individual, institution, or organization qualifies as a HIPAA covered entity.

This complexity means it's not always a simple "yes" or "no" answer, and some entities may operate as partial or hybrid entities depending on their functions and interactions.

If you're unsure about your obligations as a HIPAA covered entity, it's a good idea to seek professional compliance advice to avoid any potential issues.

Why Understanding Matters

Understanding what a HIPAA covered entity is has become increasingly complex due to changes in the way healthcare is delivered and paid for in the U.S.

The definition of a HIPAA covered entity has remained the same since 1996, but the number of exceptions has grown significantly. This can make it difficult to determine whether an individual, institution, or organization qualifies as a covered entity.

The healthcare industry has evolved to include a wider range of business models, making it harder to give a simple "yes" or "no" answer to the question of whether someone is a HIPAA covered entity.

For another approach, see: Accounting Entity

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Being a HIPAA covered entity means having to comply with the applicable standards of the Privacy, Security, and Breach Notification Rules.

If you're unsure of your obligations as a HIPAA covered entity, it's a good idea to seek professional compliance advice.

The complexity of HIPAA covered entity status can be seen in the example of an individual or organization with multiple functions, which may operate as a partial entity or a hybrid entity depending on the nature of the functions and how they interact.

Benefits

Understanding the benefits of covered entities under HIPAA is essential for anyone involved in the healthcare industry. Covered entities play a crucial role in the healthcare ecosystem.

Patient data protection is a primary benefit of covered entities. They are legally obligated to implement stringent privacy and security measures to safeguard protected health information (PHI). This ensures that sensitive health information is kept confidential.

The HIPAA Privacy Rule grants patients certain rights over their health information. Patients can access their medical records and request corrections, giving them control over their own health data.

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Improved healthcare quality is another benefit of covered entities' compliance with HIPAA regulations. By ensuring that PHI is accurate and protected, healthcare providers can make well-informed decisions, leading to improved patient care and outcomes.

Data standardization is facilitated by healthcare clearinghouses, which fall under the category of covered entities. They play a critical role in streamlining the exchange of health information.

Efficient data exchange is a key benefit of covered entities, particularly healthcare clearinghouses. They enable the secure and standardized exchange of health information, reducing errors and improving patient care.

The presence of covered entities engenders trust among patients and stakeholders in the healthcare system. When individuals know that their health information is protected, they are more likely to trust the healthcare system and its providers.

Compliance and Training

Compliance and Training is a critical aspect of being a HIPAA covered entity. You're required to provide comprehensive training to your staff, which is used in over 1000 healthcare organizations and 100+ universities.

Recommended read: Hipaa Training Requirements

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To ensure your staff is well-equipped to handle sensitive health information, you must provide them with rigorous security measures to safeguard Protected Health Information (PHI). This includes training on the HIPAA Privacy Rule, which grants patients specific rights such as access to their medical records and control over the sharing of their health information.

Documentation and record-keeping are also essential, as you're required to maintain detailed records of your compliance efforts, including policies and procedures, risk assessments, training records, and breach notifications.

Business Associate Agreement for Non-Individuals

Non-covered entities play a crucial role in protecting individuals' health information, even if they're not subject to HIPAA.

Any business dealing with Protected Health Information (PHI) from a covered entity must sign a Business Associate Agreement (BAA), a contract outlining expectations and responsibilities.

A valid BAA requires a direct relationship between the covered entity and the business associate, meaning the associate provides services to or on behalf of the covered entity.

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An indirect relationship exists when the associate provides services to or on behalf of another business associate of the covered entity, which means each associate must have its own BAA in place with the covered entity.

This ensures the confidentiality, integrity, and availability of PHI are maintained throughout the chain of associates.

Comprehensive Training

Comprehensive training is a crucial aspect of HIPAA compliance. Used in over 1000 healthcare organizations and 100 universities, it's clear that effective training is essential for covered entities.

Staff members need to receive comprehensive training and education on HIPAA regulations. This includes understanding the rules, policies, and procedures necessary for compliance.

Covered entities must ensure their workforce is aware of the importance of protecting Protected Health Information (PHI). This means establishing a culture of security and vigilance.

Comprehensive training should include topics such as safeguarding PHI, privacy compliance, and security compliance. This will help staff members understand their roles and responsibilities in protecting sensitive health information.

By providing regular training and education, covered entities can reduce the risk of breaches and ensure patient trust.

Public Health Provisions

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As a HIPAA covered entity, you're required to provide public health provisions, which include reporting and disclosure of protected health information (PHI) to public health authorities.

You must report communicable diseases to the local health department within 24 hours of identification, as specified in the article section.

Reporting requirements may also include reporting of birth and death certificates, vaccinations, and other health-related information.

For example, if a patient has a disease like tuberculosis, you must report it to the local health department.

Public health authorities can request PHI from you, but you must verify the request is legitimate and for a legitimate public health purpose.

You're not required to disclose PHI to a public health authority if it's for a research study or marketing purposes.

As a covered entity, you must also provide a written notice of the individual's right to request restrictions on disclosure of PHI for public health purposes.

Examples and Types

Let's explore the types of covered entities under HIPAA. There are four main categories: health plans, clearinghouses, providers, and business associates.

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Health plans are a common type of covered entity, including dental and vision plans, Medicaid, Medicare, and prescription drug plans. However, some exceptions apply, such as coverage items like copays and coinsurance.

Clearinghouses are crucial in the healthcare system, acting as a third party between healthcare providers and those paying for the service. They examine invoices for errors or anomalies and return them to the provider with a decision on acceptance.

Providers are the healthcare organizations themselves, including doctors' clinics, chiropractors, pharmacies, and more. They collect protected health information (PHI) to diagnose, treat, and bill patients.

Business associates are individuals or organizations that provide a service to a HIPAA-covered entity, often having access to PHI in the process. They can include industries like billing companies, data intermediaries, and electronic data interchange (EDI) providers.

Here are the main types of covered entities under HIPAA:

These categories are not exhaustive, but they cover the main types of covered entities under HIPAA.

Frequently Asked Questions

Who is not a HIPAA covered entity?

Non-covered entities, not bound by HIPAA, include wearable tech, health apps, and providers not handling electronic data

Who is a covered person for an entity?

A covered person for an entity includes officers, directors, employees, agents, and stockholders acting on its behalf, but excludes foreign officials. This definition encompasses individuals from various nationalities, as long as they are associated with the entity.

What are the requirements of covered entities according to the HIPAA security Rule?

According to the HIPAA Security Rule, covered entities must ensure the confidentiality, integrity, and availability of electronic PHI through regular risk assessments. This involves evaluating their organization's security measures to protect sensitive patient data.

Who is protected under HIPAA?

Under HIPAA, individuals' medical records and identifiable health information are protected, including patients and their families, regardless of age or health status

What are health care organizations covered under HIPAA called?

Health care organizations covered under HIPAA are called covered entities, which include health plans, health care clearinghouses, and health care providers who electronically transmit health information. These entities must comply with HIPAA rules to protect patient health information.

Tasha Schumm

Junior Writer

Tasha Schumm is a skilled writer with a passion for simplifying complex topics. With a focus on corporate taxation, business taxes, and related subjects, Tasha has established herself as a knowledgeable and engaging voice in the industry. Her articles cover a range of topics, from in-depth explanations of corporate taxation in the United States to informative lists and definitions of key business terms.

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