Employment Law Practice Exam

According to HIPAA, which of the following is not covered under the act?

1. Insurance companies

2. Health care providers

3. Self-insured companies

4. Public mental health facilities

The correct answer is: Public mental health facilities

The Health Insurance Portability and Accountability Act (HIPAA) is designed to protect an individual's private health information and sets standards for the handling of this information by various entities. Under HIPAA, covered entities include health care providers, health plans, and health care clearinghouses that transmit health information electronically. Public mental health facilities fall into the category of health care providers, as they provide treatment and care related to mental health. Therefore, they are subject to HIPAA regulations regarding the privacy and security of patient information. In contrast, insurance companies and self-insured companies, which manage their own employee health plans, are also classified as covered entities because they deal with health information as part of their operations. This means that both insurance providers and self-insured companies must comply with HIPAA requirements. The option indicating public mental health facilities is not covered under HIPAA is incorrect because they are indeed covered entities. Therefore, the correct identification of what is not covered under HIPAA should be guided by the fact that virtually all health care providers, insurance entities, and facilities that handle personal health information are captured under the act, solidifying the role of public mental health facilities as covered entities in HIPAA compliance.