Health Insurance Portability and Accountability Act (HIPPA) Practice Exam

What role do Business Associates play under HIPAA?

1. They act as agents of health care providers

2. They are always non-profit organizations

3. They cannot access PHI

4. They are typically contractors with minimal responsibilities

The correct answer is: They act as agents of health care providers

Business Associates have a specific and crucial role under the Health Insurance Portability and Accountability Act (HIPAA). They are typically individuals or entities that perform services on behalf of or provide certain functions for a health care provider, health plan, or health care clearinghouse that involves the use or disclosure of Protected Health Information (PHI). This means that Business Associates can access, create, maintain, or transmit PHI in the course of carrying out their duties related to the covered entity. For instance, a third-party billing company hired by a healthcare provider to process claims is considered a Business Associate because it handles PHI in order to perform its service. Under HIPAA, both the covered entities and Business Associates are subject to specific compliance requirements, including the necessity of a written contract that outlines the safeguarding of PHI, which ensures the confidentiality and security of health information. The other choices do not accurately represent the role of Business Associates. They are not always non-profit organizations, nor are they restricted from accessing PHI as they are required to handle it under specified conditions. Additionally, they have significant responsibilities rather than minimal ones, as they must adhere to HIPAA regulations and ensure the protection of PHI. Therefore, the correct choice highlights the essential function of Business