Which of the following is NOT considered a covered entity under HIPAA?

The correct response highlights that employers with fewer than 50 employees are not classified as covered entities under HIPAA. Covered entities include healthcare providers who transmit health information in electronic form, health plans that provide or pay for health care, and healthcare clearinghouses that process health information.

The distinction lies in the purpose and activities involved with healthcare and protected health information (PHI). Covered entities are primarily those who handle PHI directly within the healthcare system, whereas employers, particularly those with fewer employees, do not typically engage in these activities at the level required for HIPAA to apply. Although employers may deal with employee health records, they are generally not involved in the kinds of transactions that HIPAA governs unless they are also functioning as health plans themselves. Therefore, the classification of covered entities excludes smaller employers, making them the correct answer in this case.