What does the term “covered entities” encompass according to HIPAA?

The term “covered entities” under HIPAA includes healthcare providers, health plans, and healthcare clearinghouses that transmit health information in electronic form. This definition is essential because it identifies those who must comply with HIPAA regulations regarding the privacy and security of protected health information (PHI).

Healthcare providers are individuals or organizations that furnish medical or health services, health plans refer to insurance companies or group health plans that provide or pay for medical care, and clearinghouses are entities that process health information received from another entity into a standard format. By encompassing these three types of organizations, HIPAA ensures that a broad spectrum of the healthcare industry is held accountable for protecting patient information, reflecting the law's comprehensive approach to privacy and data security in the healthcare sector.

The other options do not adequately represent the full scope of covered entities, as they are either too narrow or exclusive, failing to include significant aspects of the healthcare system that are subject to HIPAA compliance.