Which of the following is considered a HIPAA covered entity?

Get ready for the AAPC Certified Professional Medical Auditor Test. Enhance your skills with multiple choice questions, each designed to provide thorough explanations. Excel in your exam preparation!

The correct answer is indeed that healthcare providers who transmit health information electronically are considered a HIPAA covered entity. Under the Health Insurance Portability and Accountability Act (HIPAA), covered entities include health care providers, health plans, and health care clearinghouses that handle medical information and electronic health information.

Healthcare providers are deemed covered entities if they engage in electronic transactions related to healthcare, such as submitting claims, coordinating benefits, or conducting other electronic communications concerning patient health information. It is essential for these entities to comply with HIPAA regulations to protect the privacy and security of individual health information.

In contrast, employers who manage health plans do not automatically qualify as covered entities unless they administer their own health plans and handle such transactions directly. Insurance providers that offer only property and casualty insurance are not considered covered entities under HIPAA since they do not deal with health-related information. Lastly, food stamp programs do not fall under HIPAA regulations, as they do not involve the transmission of health information but rather focus on nutritional assistance and social welfare. Therefore, the focus on healthcare providers involved in electronic transactions uniquely qualifies them as covered entities under HIPAA.

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