What is a Business Associate under HIPAA?

A Business Associate under HIPAA is defined as a person or entity that performs certain functions or activities on behalf of a covered entity that involves the use or disclosure of protected health information. This relationship is essential because Business Associates can include a variety of service providers, such as billing companies, data analysis firms, or healthcare consultants. The key aspect is that the Business Associate must have access to protected health information (PHI) while carrying out their designated tasks for the covered entity.

This definition also emphasizes the need for compliance with HIPAA regulations, which require covered entities to have a business associate agreement in place. This agreement outlines the responsibilities and expectations for safeguarding PHI, ensuring that the Business Associate adheres to the same privacy and security regulations required of the covered entity itself.

In contrast, an employee of a covered entity falls under the organization’s direct management and is not classified as a Business Associate since they are typically responsible for safeguarding PHI as part of their job. An unrelated third-party provider does not directly perform services for the covered entity regarding PHI, and while a healthcare plan administrator interacts with PHI, their role does not independently qualify them in the context of a Business Associate unless they are acting on behalf of a covered entity.