True or False: HIPAA applies only to healthcare providers but not to health insurance companies.

The assertion that HIPAA applies only to healthcare providers is false. Under HIPAA (the Health Insurance Portability and Accountability Act), both healthcare providers and health insurance companies, as well as other entities involved in the handling of protected health information (PHI), are covered by the regulations. This includes any healthcare entity that electronically transmits health information as part of a standard transaction, which applies broadly across the healthcare sector.

Health insurance companies are considered "covered entities" under HIPAA because they handle PHI for claims processing, eligibility determinations, and other health-related functions. Consequently, they are required to comply with HIPAA’s privacy and security rules, ensuring that individuals' health information is protected and used appropriately.

This comprehensive inclusion underscores the importance of safeguarding PHI across the entire healthcare ecosystem, not just within healthcare practices but also within insurance companies and other related organizations dealing with health data. Therefore, the conclusion that HIPAA applies only to healthcare providers does not hold, making the statement false.