Question

What does the term covered entity mean? What are the three categories of Covered Entities? Discuss some of the varieties of covered entities that must be compliant with HIPAA and some that might not be covered entities.

Answer 1

Answer: A covered entity can be defined as the particular entity which provides treatment, operations as well as the payment in the healthcare. For example nursing home, pharmacy etc.

The three categories of Covered Entities are:

• Health Maintenance Organization
• Medicare and Medicaid
• Employer sponsored health plans.

Some of the varieties of covered entities that must be compliant with HIPAA are such as healthcare plans, healthcare professionals who electronically saves information or transfer. The entities that might not be covered are Medicare, HMO.