Which type of entity is required to comply with HIPAA?

The correct answer highlights the specific categories of entities defined as covered entities under the Health Insurance Portability and Accountability Act (HIPAA). Covered entities include health plans, healthcare clearinghouses, and healthcare providers that engage in electronic transmission of health information. These entities are directly involved in the provision of healthcare services and the handling of protected health information (PHI), which places them under the jurisdiction of HIPAA regulations.

Health plans manage the financial aspects of healthcare, healthcare providers are involved in delivering medical services, and healthcare clearinghouses facilitate the processing and exchange of health information. All of these entities play critical roles in the healthcare ecosystem, which is why they bear the responsibility of ensuring compliance with HIPAA to safeguard patient information.

The other options either pertain to entities that are not involved in healthcare or do not process health information in a manner that would require adherence to HIPAA regulations. For instance, independent auditors may assess compliance but they do not handle PHI directly, while insurance companies focused on non-healthcare claims and nonprofit organizations unrelated to healthcare are outside of HIPAA’s scope. Thus, only covered entities must comply with HIPAA standards to protect patient confidentiality and the integrity of health information.