What is a key characteristic of a Covered Entity?

A key characteristic of a Covered Entity under the Health Insurance Portability and Accountability Act (HIPAA) is that they collect or transmit Protected Health Information (PHI). Covered Entities include healthcare providers who transmit any health information in electronic form in connection with a HIPAA transaction, health plans, and healthcare clearinghouses. These entities are crucial to the functioning of the healthcare system and are entrusted with sensitive patient information, which they must handle in compliance with HIPAA regulations.

The focus on the collection or transmission of PHI underscores the importance of safeguarding patient information, ensuring that Covered Entities implement the required privacy and security measures to protect patients’ sensitive health data. Understanding this characteristic helps in grasping the broader regulatory responsibilities that come with being a Covered Entity, including the obligations to maintain confidentiality and integrity of PHI.