Question

Joe is the ceo of a company that handles medical billing for several regional hospital systems. how would joe's company be classified under the health insurance portability and accountability act (hipaa)?

a. covered entity as a health plan
b. covered entity as a healthcare clearinghouse
c. covered entity as a provider
d. business associate of a covered entity

Answer 1

Joe's company is classified as a business associate of a covered entity under HIPAA because it processes PHI on behalf of healthcare providers, not as a provider, clearinghouse, or plan itself.

Step-by-step explanation:

Under the Health Insurance Portability and Accountability Act (HIPAA), Joe's company would be classified as a business associate of a covered entity.

Although the company handles medical billing, which involves dealing with protected health information (PHI), it is not one of the covered entities such as a health plan, healthcare clearinghouse, or a healthcare provider itself.

Instead, it is a service provider to these entities, tasked with processing PHI on their behalf, which establishes it as a business associate under HIPAA. Business associates are required to comply with HIPAA rules and protect the confidentiality and security of health information.