What is a covered entity under HIPAA?

Under HIPAA, a covered entity is defined as any healthcare provider that transmits any health information in electronic form in connection with a HIPAA transaction. This broad definition captures a wide range of entities involved in the healthcare system, including doctors, hospitals, nursing homes, and even billing companies that handle health information electronically. The inclusion of "any healthcare provider" indicates that it’s not limited to just specific types of providers like hospitals or clinics, which is why the option regarding only hospitals and clinics is incorrect.

Furthermore, covered entities also include health plans, which are responsible for providing health insurance benefits, and healthcare clearinghouses, which process health information. Individuals treating patients do not automatically qualify as covered entities unless they are doing so as part of a larger organization that transmits health information electronically. Thus, the comprehensive nature of the definition aligns fully with the correct answer, confirming that it encompasses a range of healthcare providers rather than restricting it to select groups.