Final answer:
A covered entity is a person or organization subject to HIPAA's privacy rule, such as healthcare providers and health plans. Patients are excluded from this definition.
Step-by-step explanation:
A covered entity refers to a person or organization that is subject to the privacy rule under the Health Insurance Portability and Accountability Act (HIPAA), and is therefore required to protect the privacy and security of health information. It includes healthcare providers, health plans, and clearinghouses. However, it does not include patients as they are not considered covered entities under HIPAA.
For example, a healthcare provider such as a private hospital or a nonprofit health organization, and a health plan like an insurance company or a governmental agency, would be considered covered entities. Patients, on the other hand, are individuals seeking healthcare services and are not part of the covered entity definition.