What distinguishes a covered entity from a non-covered entity?

The distinction between a covered entity and a non-covered entity primarily revolves around compliance with HIPAA regulations. Covered entities, which include healthcare providers who transmit any health information in electronic form, health plans, and healthcare clearinghouses, are required to adhere to the privacy, security, and breach notification rules set forth by HIPAA. This obligation ensures the protection of patients' health information and establishes standards for the handling of such data.

On the other hand, non-covered entities do not meet the criteria set by HIPAA and therefore are not bound by these regulations. This includes various organizations and individuals that may handle health information but do not fall within the defined categories of covered entities. Understanding this compliance aspect is essential for recognizing who is accountable under HIPAA and ensuring that patient information is adequately safeguarded.