### Question
Can you define what covered entity means?


### Answer
**Covered entity** is defined as the following in *42 U.S.C. § 1396r*:

> an entity described in section 256b(a)(4) of this title and a children's hospital described in section 1395ww(d)(1)(B)(iii) of this title which meets the requirements of clauses (i) and (iii) of section 256b(b)(4)(L) [1](#1396r-8_1_target) of this title and which would meet the requirements of clause (ii) of such section if that clause were applied by taking into account the percentage of care provided by the hospital to patients eligible for medical assistance under a State plan under this subchapter

#### Citation:
  - *42 U.S.C. § 1396r*
  - Heading: **CHAPTER 7-SOCIAL SECURITY > SUBCHAPTER XIX-GRANTS TO STATES FOR MEDICAL ASSISTANCE PROGRAMS**

