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 must access, use, and disclose protected health information (PHI) to perform their duties. Therefore, they must be compliant with HIPAA.