Which entity is NOT required to comply with HIPAA?

The reason that employers with fewer than 50 employees are not required to comply with HIPAA relates to the scope of the regulation and its intent. HIPAA (Health Insurance Portability and Accountability Act) primarily targets entities known as "covered entities," which include healthcare providers who transmit health information electronically, health plans, and healthcare clearinghouses. These covered entities typically handle protected health information (PHI) on a more substantial basis.

Employers are generally considered business associates when they handle health information, such as providing health insurance benefits to employees. However, employers with fewer than 50 employees often have minimal exposure to health information and may not operate as covered entities under HIPAA. The law establishes that only those who have specific roles related to health information processing and transmission must comply with its regulations.

The other entities listed—healthcare providers who transmit health information electronically, health plans, and government agencies that manage health records—are all directly involved in the handling of PHI and, therefore, have established compliance responsibilities under HIPAA.