A unit covered by the HIPC is typically a health care provider, health plan or health care clearing house that conducts transactions electronically. A supplier to a HIPC entity that needs to receive protected health information (IHP) to perform tasks on behalf of the covered entity is designated as a counterparty (BA) under the HIPC. A provider is also considered BA when the PHI electronic services (ePHI) pass through its systems as part of the services provided. A counterparty agreement signed by the HIPC must be obtained from the covered entity before a counterparty can contact PHI or ePHI. (b) dismissal for unfounded cause. The counterparty shall authorize the termination of this Agreement by the Covered Entity if the Covered Entity finds that the Counterparty has breached an essential provision of the Agreement [and that the Counterparty has not cured or terminated the Breach within the period specified by the Covered Entity]. [A language in parentheses may be added if the undertaking concerned wishes to give the counterparty the opportunity to remedy a breach or breach of contract prior to termination for an indispensable reason.] Tax Class – A counterparty in this Agreement is treated as an independent contractor of 1099 responsible for the payment of its personal income and personnel taxes. . .

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