What are "business associates" under HIPAA?

The correct answer identifies "business associates" as individuals or entities that perform functions on behalf of, or provide services to, a covered entity that involves the use of protected health information (PHI). Under the Health Insurance Portability and Accountability Act (HIPAA), a covered entity is a healthcare provider, health plan, or healthcare clearinghouse that transmits PHI in electronic form in connection with a HIPAA transaction.

Business associates play a crucial role in the healthcare ecosystem by performing essential services such as billing, coding, data analysis, legal services, and IT support. Since these services may require access to PHI, business associates are subject to certain HIPAA regulations. They must enter into a Business Associate Agreement (BAA) with the covered entity to ensure that any PHI they handle is protected and that both parties understand their responsibilities regarding the privacy and security of that information. This relationship ensures compliance with HIPAA requirements while allowing covered entities to delegate certain functions without compromising patient privacy.

Understanding the definition and role of business associates is vital for those working in health information management, as they must ensure that all entities involved in the handling of PHI adhere to stringent privacy and security protocols.