HIPAA Privacy Rule Practice Test 2025 - Free HIPAA Compliance Practice Questions and Study Guide

A business associate under HIPAA is defined as a person or entity that performs certain functions on behalf of a covered entity, where those services involve the use or disclosure of protected health information (PHI). This definition encompasses a wide range of individuals or organizations that may have access to PHI in order to provide services like billing, data analysis, or legal services.

By identifying option B as the correct answer, it emphasizes the central role of the business associate in handling PHI while carrying out their duties for the covered entity. This distinction is critical for maintaining compliance with HIPAA regulations, as it mandates that covered entities must have a Business Associate Agreement (BAA) in place with these associates to ensure that proper safeguards for PHI are upheld.

The other options address roles and functions that do not fall under the specific parameters of a business associate as defined by HIPAA. For instance, a member of a covered entity's workforce (option A) is more accurately described as employees who are directly employed by the entity and are therefore covered by the entity's HIPAA policies. An external auditor (option C), while potentially a business associate, is not a broad definition since not all auditors performing compliance duties would necessarily handle PHI. Lastly, a patient representative (