Final answer:
HIPAA compliance is mandatory for Covered Entities, including healthcare providers and insurance plans, and for Business Associates like medical billing and IT services companies.
Step-by-step explanation:
The Health Insurance Portability and Accountability Act (HIPAA), passed in 1996, requires certain entities to comply with privacy regulations regarding protected health information (PHI). These entities are categorized into two groups: Covered Entities and Business Associates.
1. Covered Entities include:
- a. Healthcare providers (e.g., doctors, hospitals, clinics)
- b. Health insurance plans (e.g., HMOs, PPOs)
2. Business Associates include:
- c. Medical billing companies
- d. IT companies providing services to healthcare providers
Both entities play a critical role in safeguarding personal health records and ensuring compliance under HIPAA regulations.