Is it true that only covered entities can transmit PHI?

Covered entities, as defined under HIPAA (Health Insurance Portability and Accountability Act), include health care providers, health plans, and healthcare clearinghouses that transmit any health information in electronic form. The assertion that only covered entities can transmit Protected Health Information (PHI) is true because these entities have specific responsibilities and obligations to safeguard the confidentiality, integrity, and availability of PHI. They operate under strict regulations that dictate how PHI is to be handled.

When any covered entity transmits PHI, they must follow established privacy and security rules to protect the information from unauthorized access or breaches. This responsibility is a direct result of the implementation of HIPAA regulations, which ensure that sensitive health information is adequately protected.

In contrast, non-covered entities or individuals may still come into contact with PHI, but they do not have the same obligations under HIPAA unless they are acting as business associates of a covered entity, making their role dependent on their relationship with those entities. This distinction underscores the regulatory framework surrounding PHI transmission.