 
We provided this definition [of covered entity] in the NPRM for convenience of reference and proposed it to mean the entities to which part C of title XI of the Act applies. These are the entities described in section 1172(a)(1): Health plans, health care clearinghouses, and health care providers who transmit any health information in electronic form in connection with a transaction referred [[Page 82477]] to in section 1173(a)(1) of the Act (a ``standard transaction''). We note that health care providers who do not submit HIPAA transactions in standard form become covered by this rule when other entities, such as a billing service or a hospital, transmit standard electronic transactions on their behalf. A provider could not circumvent these requirements by assigning the task to its business associate since the business associate would be considered to be acting on behalf of the provider. [[Federal Register: December 28, 2000 (Volume 65, Number 250)] [Rules and Regulations]
``Sec. 1173. (a) Standards < `(1) In general.--The Secretary shall adopt standards for transactions, and data elements for such transactions, to enable health information to be exchanged electronically, that are appropriate for-- ``
(A)the financial and administrative transactions described in paragraph (2); and ``
(B) other financial and administrative transactions determined appropriate by the Secretary, consistent with the goals of improving the operation of the health care system and reducing administrative costs. ``
(2) Transactions.--The transactions referred to in paragraph (1)(A) are transactions with respect to the following: `
`(A) Health claims or equivalent encounter information. ``
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