Which entities are considered covered under HIPAA?

The correct answer identifies the entities that are classified as covered entities under the Health Insurance Portability and Accountability Act (HIPAA). These covered entities include health plans, health care providers who conduct certain transactions electronically, and health care clearinghouses.

Health plans are entities that provide or pay for medical care, including private health insurance plans, Medicare, and Medicaid. Health care providers, such as doctors and hospitals, must adhere to HIPAA regulations when they share patient information. Health care clearinghouses process or facilitate the processing of health information under HIPAA rules. This classification is crucial for understanding who must comply with HIPAA's requirements to protect patient information.

Other options do not fit within the definition of covered entities. Schools and employers generally do not fall under HIPAA’s requirements unless they are specifically involved in providing health care services or health plans directly to students or employees. Municipal courts are typically involved in legal matters rather than health care, while life insurance agencies, although they handle health-related information for underwriting purposes, are not classified as covered entities under HIPAA either. Workers' compensation carriers function under different regulations and do not fall under the HIPAA umbrella as covered entities for their health care information management.