Final answer:
The Security Rule of HIPAA covers most PHI that a Covered Entity possesses, but may not apply to non-electronically maintained or transmitted PHI. It applies to Covered Entities such as healthcare providers, health plans, and healthcare clearinghouses.
Step-by-step explanation:
The Security Rule of the Health Insurance Portability and Accountability Act (HIPAA) covers most Protected Health Information (PHI) that a Covered Entity possesses. However, it does not cover PHI that is not electronically maintained or transmitted by the Covered Entity. For example, if a Covered Entity has paper records that are not electronically stored, the Security Rule may not apply to those records.
Additionally, the Security Rule applies only to Covered Entities, such as healthcare providers, health plans, and healthcare clearinghouses. It does not apply to individuals who are not considered Covered Entities.
Therefore, while the Security Rule provides security standards for most PHI held by Covered Entities, it may not cover all PHI, especially if it is not electronically maintained or transmitted.