How does HIPAA define the term "cover entities"?

The term "covered entities" under HIPAA includes healthcare providers, health plans, and healthcare clearinghouses that electronically transmit any health information in connection with a HIPAA transaction. This classification is essential as it establishes who is subject to HIPAA regulations, which are designed to protect patient privacy and the security of health information.

Healthcare providers, such as doctors or hospitals, are considered covered entities when they engage in transactions involving health information electronically, which can include billing or eligibility inquiries. Health plans, like insurance companies, are also covered because they handle medical records and claims. Healthcare clearinghouses are entities that process or facilitate the processing of health information, such as billing services.

The other options do not fit the definition of covered entities under HIPAA. Businesses that sell healthcare technology and organizations that fund health research are not automatically subject to HIPAA unless they meet the criteria of processing or handling health information as outlined. Similarly, insurance agents who sell life insurance are not classified as covered entities unless they engage in HIPAA-related transactions. Therefore, only the first option accurately defines covered entities within the HIPAA framework.