A HIPAA covered entity refers to a person, agency, or practice that provides treatment, payment, and operations in healthcare. Covered entities include:
- Health plans (such as health insurance companies)
- Healthcare clearinghouses (such as billing companies)
- Healthcare providers (such as doctors, hospitals, laboratories, and pharmacies)
Covered entities need to access, use, and disclose protected health information (PHI) in order to perform their job duties. Therefore, they must be compliant with HIPAA.