Definition
A covered entity under HIPAA is a health plan, a health care clearinghouse, or a health care provider that transmits health information electronically in connection with certain transactions.
Why it matters for business
Health plan, clearinghouse, or provider under HIPAA. Operations, security, and compliance conversations often assume this term is clear.
Example in an SMB context
A clinic, billing firm, or professional services company in the CT/NY/NJ region may need to explain how Covered entity applies when reviewing vendors, devices, or security documentation.
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