Under HIPAA, what constitutes a 'covered entity'?

The correct understanding of what constitutes a 'covered entity' under HIPAA includes health plans, health care clearinghouses, and health care providers that transmit any health information in electronic form as part of their business. This definition is crucial for identifying which organizations must comply with HIPAA regulations regarding the protection of patient information.

Health plans refer to insurance providers that pay for health care services, while healthcare clearinghouses are entities that process health information received from other entities. Healthcare providers include individuals or organizations that provide medical services and engage in electronic data exchanges related to patient information, such as billing and insurance verification.

The other options do not capture the full scope of what covered entities are under HIPAA. For instance, stating that any organization providing medical services qualifies overlooks the specific criteria related to electronic transmission of health information. Similarly, limiting the definition to only hospitals excludes numerous other providers and organizations that fit within the covered entity definition. Thus, option B accurately reflects the comprehensive nature of covered entities as defined by HIPAA.