Under HIPAA, which of the following is considered a "covered entity"?

Study for the Certified Information Privacy Professional/United States (CIPP/US) Test. Prepare with flashcards and multiple-choice questions, each with hints and explanations. Get ready to ace your exam!

The correct choice identifies health care providers that transmit health information electronically as "covered entities" under HIPAA (Health Insurance Portability and Accountability Act). Covered entities include healthcare providers who engage in transactions that involve the electronic transmission of health information, health plans, and healthcare clearinghouses that process health information.

This designation is critical because HIPAA imposes specific privacy and security requirements to protect patients’ sensitive health information. Providers who care for patients and transmit their health data electronically play a vital role in the healthcare system, thus are subject to these regulations to ensure that patient information remains confidential and secure.

The other options do not meet the definition of covered entities under HIPAA. Data protection authorities, while involved in privacy and data protection, are not covered entities as defined by HIPAA. Health insurance exchanges may interact with healthcare data, but they are not classified as covered entities in the same context as healthcare providers. Lastly, a generic reference to any company handling personal data does not relate specifically to healthcare or the specific obligations under HIPAA, as it encompasses a much broader range of entities not confined to healthcare.

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