Employment Law Practice Exam 2025 – 400 Free Practice Questions to Pass the Exam

The Health Insurance Portability and Accountability Act (HIPAA) primarily applies to health care providers who transmit any health information in electronic form in connection with a HIPAA transaction. This includes doctors, clinics, hospitals, nursing homes, and any health care facility or provider that handles health information. These entities are mandated to protect the privacy and security of individuals' medical information, ensuring that sensitive data is not disclosed without the individual's consent.

While employers and other entities may interact with health data in certain contexts, they are not the primary focus of HIPAA unless they fall under the category of covered entities or business associates within the health care system. Employers themselves do not have an inherent obligation to comply with HIPAA unless they are involved in the provision of health care services or health plan administration. Other options, such as government contractors or retail businesses, do not directly relate to HIPAA’s intent and scope, which is centered around ensuring confidentiality and safeguarding patients' health information within the realm of health care services.