Who must comply with HIPAA?

HIPAA, the Health Insurance Portability and Accountability Act, applies to what are known as "covered entities." Covered entities include healthcare providers who transmit any health information in electronic form, health plans, and healthcare clearinghouses. These entities handle protected health information (PHI) and are responsible for ensuring that such information is kept confidential and secure.

Compliance with HIPAA is crucial for these organizations because they are directly involved in the handling of sensitive health information. They must establish safeguards to protect this information and comply with various regulations related to the use and disclosure of PHI.

The other options either limit the scope of compliance to certain groups that do not encompass the full range of covered entities or focus solely on business associates, which, while also required to comply with certain HIPAA provisions, are not the primary subjects of the act. Therefore, understanding that covered entities have the foremost obligation to adhere to HIPAA illustrates the broader responsibility organizations have regarding patient privacy and data security.