A covered entity is a term used in the context of data privacy and healthcare to describe organizations that handle sensitive health information. This concept stems from the Health Insurance Portability and Accountability Act (HIPAA). According to HIPAA, covered entities are responsible for safeguarding the privacy and security of individuals' protected health information (PHI).
There are three main types of covered entities:
Go deeper: Who HIPAA does not apply to and why
Covered entities must adhere to strict rules and regulations when handling PHI. Their obligations under data privacy and healthcare laws include the following:
Failure to comply with these responsibilities can result in penalties, including fines and, in some cases, criminal charges.
Business associates are third-party organizations that perform services for covered entities and handle PHI on their behalf. Examples of business associates include billing companies, electronic health record vendors, and IT service providers.
Covered entities must establish business associate agreements (BAAs) with these third parties to ensure they also comply with data privacy and security rules. BAAs outline the responsibilities of business associates in protecting PHI, and any failure to adhere to these responsibilities can result in penalties for both the covered entity and the business associate.
Related: HIPAA Compliant Email: The Definitive Guide
Patients have specific rights with respect to their PHI under HIPAA. Covered entities must uphold these rights and respond to patient requests in a timely manner, ensuring they communicate effectively with patients about their PHI and privacy options.
Some of these rights include:
In addition to HIPAA, covered entities may need to comply with state-level privacy laws and regulations governing health information handling. State laws can vary, sometimes providing even more stringent protections for PHI than federal regulations. Covered entities must know their regional compliance requirements and stay informed about any changes in state-level privacy regulations.
Understanding the concept of covered entities is vital for anyone involved in the healthcare industry or working with health information. As organizations responsible for safeguarding PHI, covered entities are crucial in protecting personal and health information from unauthorized access and misuse.