According to HIPAA, a healthcare provider or its business associate may disclose PHI when authorized to do so, but only to the extent necessary. This is known as:

The correct choice is C, which refers to the Minimum Necessary Rule. This concept is a critical component of HIPAA (Health Insurance Portability and Accountability Act) regulations. The Minimum Necessary Rule mandates that healthcare providers and their business associates limit the use and disclosure of protected health information (PHI) to the minimum amount necessary to accomplish the intended purpose of the disclosure.

This principle is designed to protect the privacy of individuals' health information by ensuring that only essential information is shared, thereby reducing the risk of unnecessary exposure of sensitive data. For example, if a healthcare provider needs to share information with a billing department, they should only provide the specific information required for billing purposes, rather than disclosing a complete medical record.

The other options do not accurately capture this principle as defined by HIPAA. The Necessary Disclosure Rule and the Authorized Disclosure Rule are not recognized terms within HIPAA, making them unsuitable descriptions of the requirement to limit disclosures to the minimum necessary. The focus on need-to-know aligns with healthcare compliance objectives that strive to safeguard patient confidentiality. This clear and structured approach not only aids compliance with legal standards but also promotes ethical handling of sensitive information in healthcare settings.