Which of the following best describes covered entities under HIPAA?

The definition of covered entities under HIPAA is best described as health plans, healthcare clearinghouses, and healthcare providers that conduct electronic transactions. Covered entities are specifically identified in the HIPAA regulations to include these three categories.

Health plans encompass insurance companies, health maintenance organizations (HMOs), and government programs like Medicare and Medicaid. Healthcare clearinghouses are organizations that process or facilitate the processing of health information, often converting data between different formats or standards. Healthcare providers refer to individuals or organizations that provide healthcare services and transmit any health information in electronic form for a transaction for which HHS has adopted a standard.

The other options do not fully capture the legal definition of covered entities. For instance, it is incorrect to state that healthcare providers never share patient information, as sharing information is oftentimes necessary for patient care and compliance with HIPAA regulations. Similarly, claiming that all healthcare professionals are included regardless of the technology they use fails to recognize that the term 'covered entity' is exclusively linked to specific roles and transactions related to electronic data exchanges within the scope of HIPAA. Therefore, the second choice is the most comprehensive and accurate description of covered entities under HIPAA.