1. Under the Health Insurance Portability and Accountability Act (HIPAA), this is a health plan, clearinghouse, or health provider who transmits health information and financial and administrative transactions in electronic form in connection with a HIPAA transaction. 2. From the perspective of the medical transcription service owner or independent contractor, the covered entity is the client. The CE is responsible for the protection of health information and, if there is a violation, can request documentation from its business associates to prove their compliance.