HIPAA vs GDPR (Differences and Similarities)

HIPAA and GDPR are two of the most stringent privacy and security frameworks in the world today. While they are similar in many ways (both being regulatory mandates), they seem to operate in completely different industries. HIPAA is laser-focused on the privacy of personal health information within the US and applies mainly to healthcare entities, GDPR is the cornerstone guardian of the personal data of EU citizens across sectors.

Yet, despite their distinct areas of focus, both frameworks share a common goal: Commitment to protecting sensitive information. That’s what we explore in this blog, it highlights the key differences between HIPAA and GDPR, while also presenting the commonalities they share with each other. 

Let’s dive into understanding the differences between HIPAA and GDPR.

TL;DR 

• HIPAA is exclusively for companies in the healthcare sector servicing in the US, while GDPR covers all personal data across sectors in the EU and beyond.
• While GDPR requires explicit consent for personal data processing, enhancing individual control, HIPAA guidelines allow data sharing for specific healthcare operations without patients’ when necessary.
• HIPAA requires notifications for breaches affecting over 500 individuals, while GDPR mandates notification within 72 hours, reflecting tighter regulations.

What is HIPAA, and why is it required?

HIPAA (Health Insurance Portability and Accountability Act) is a vital US federal law requiring healthcare organizations to protect patient data’s confidentiality and integrity while ensuring its availability.

The HIPAA Privacy and Security Rules were established in 1996 by the Department of Health & Human Services (HHS) to ensure patient confidential medical information remains secure. And to further strengthen security measures for patient data protection, additional regulations were introduced in 2000 and 2003 to safeguard privacy.

As a lead auditor described, HIPAA rules apply to business units, their workforce, and even the vendors associated with them. 

“Covered entities are regulated by all HIPAA rules; Business Associates are regulated in the context of their services to covered entities” – Rajiv Ranjan: ISO Lead Auditor at Sprinto

What is GDPR and why is it required?

The European Union created the GDPR to protect people’s data in the increasingly digital world. It requires companies around the world to comply with strict regulations when it comes to collecting, processing, and storing personal data. 

Despite its complexity and far-reaching implications, the GDPR is necessary for protecting individuals from potential misuse or abuse of their information.

Today, hackers are becoming more sophisticated as more businesses move towards cloud computing. This means that personal data is at greater risk than ever before. The GDPR helps combat this issue by requiring organizations to implement appropriate measures when handling private information and ensuring that any breaches are addressed quickly and effectively. 

In short, the GDPR helps protect people’s safety and privacy within the digital data landscape. As a business, you must understand GDPR regulations to comply with its requirements and avoid costly penalties.

Difference between HIPAA and GDPR

While both regulatory standards lay guidelines to protect the data privacy of the data subject, the primary difference is between the type of information they cover. GDPR comprehensively covers all personal data (PII) of EU/UK citizens while HIPAA focuses on the privacy of one’s medical records and healthcare information – Protected Health Information (PHI). And that’s when you might hit a snag. Now let’s take a closer look at HIPAA vs GDPR:

Classification	HIPAA	GDPR
Consent	Under HIPAA, healthcare providers can disclose PHI (Protected Health Information) without patient consent. HIPAA broadly defines “treatment” as the provision, coordination, or management of healthcare and related services by one or more providers, allowing PHI to be sent to another provider for treatment.  HIPAA also permits healthcare providers to disclose PHI to other providers or business associates to conduct certain necessary operations.	In stark contrast, the GDPR does not permit PHI disclosure without explicit consent from EU data subjects. GDPR emphasizes the importance of protecting individuals within their digital experience by requiring companies to obtain clear consent from data subjects before processing their personal data, including PHI.
Data Breaches	Under HIPAA, if more than 500 individuals are affected, you must notify all relevant supervisory authorities in the EU and any media outlets or other communication channels available.	Under  GDPR, organizations must protect personal data and take sufficient measures to prevent data breaches.  It’s essential that you inform your supervisory authority within 72 hours after becoming aware of it.
Scope	HIPAA’s more specific regulations apply primarily to healthcare providers and their business associates. An example of a symptom indicating when HIPAA might be applicable is if you are working with PHI, as this type of data requires a higher level of security measures as outlined by the regulation.	GDPR has a wide scope that extends across operating boundaries
Sharing information with third parties	HIPAA  is more restrictive regarding how patient records can be shared with third parties such as insurers or research facilities.	In accordance with GDPR and the Data Protection Act of 2018, you could share sensitive information without consent if it is justified by law due to a potential safety risk.
Right to be forgotten	HIPAA does not offer “Right to be forgotten” grant	GDPR grants individuals the unique “Right to be Forgotten,
Penalties	$100 to $50,000 per violation, up to $1.5M per year. Criminal penalties can include imprisonment.	Up to €20 million or 4% of annual global turnover, whichever is higher.
Data Protection Officer (DPO)	No formal requirement for a DPO, but covered entities must have a privacy officer.	Mandatory for organizations to process large amounts of EU residents’ personal data or engage in sensitive processing.
Regulatory Authority	U.S. Department of Health and Human Services (HHS), Office for Civil Rights (OCR).	Each EU member state has its own Data Protection Authority (DPA); coordinated by the European Data Protection Board for cross-border issues.
Purpose	Protect the privacy and security of health information, especially in electronic transfers, and facilitate high-quality health care.	Protect the personal data and privacy of EU citizens for transactions within EU states and regulate the export of personal data outside the EU.

Need to meet GDPR standards? Our “GDPR Data Processing Agreement” is here to help. Download this essential document to ensure your data processing aligns with regulations.

What are the similarities between HIPAA and GDPR?

GDPR and HIPAA share many similarities working together to safeguard individuals’ privacy. Both provide detailed regulations that ensure personal data is handled securely when used, disclosed, stored, or shared – guaranteeing the protection of users’ valuable information.

Here are the similarities in detail:

• GDPR and HIPAA require a secure approach to handling confidential data
• Both require techniques to identify and prevent unapproved adjustments to PHI
• The secure transmission and storage of Protected Health Information (PHI) is mandatory in both cases
• Both necessitate an appointed Data Protection Officer (DPO)
• By utilizing either of these solutions, businesses can prioritize the privacy and safety of their clients, patients, and employees.

Hence, HIPAA vs GDPR for an organization helps in many ways!

HIPAA vs GDPR With Sprinto 

The difference between GDPR and HIPAA proves that they are complex regulations you must take seriously. In summary, although the two are similar in purpose and language, there are key differences in their obligations and restrictions that you should remember when considering data handling systems for either medical or European customer data. 

HIPAA focuses mainly on healthcare providers, while GDPR is more concerned with protecting general consumer data. When it comes to companies in the United States that come under the purview of compliances, they must simultaneously comply – a challenge if not planned for correctly. 

If you would like to know how these compliance regulations affect your organization’s  GDPR and HIPAA journey, then, talk to our experts today! A powerful compliance platform that will help you get audit ready in weeks. Get a free demo to understand how it works!

FAQs

Does GDPR apply to PHI?

Absolutely, the GDPR applies to all personal data of those within its jurisdiction, while HIPAA has a much more restricted area of influence and only affects PHI (Protected Health Information).

How to choose between HIPAA and GDPR?

Choose HIPAA if your organization handles U.S. healthcare Protected Health Information (PHI) or works with U.S. healthcare entities. Opt for GDPR if you process any personal data of EU/UK residents, regardless of your location. You should also consider the type of data, jurisdiction, potential penalties (GDPR fines are typically higher), and your market focus to determine which compliance standard best fits your business needs.

Does HIPAA apply to Europe?

No, HIPAA does not offer legal coverage beyond international boundaries. HIPAA only protects covered entities such as health care providers, health plans, clearinghouses, and their contracted business associates. 

Does GDPR cover health information?

Yes, the GDPR acknowledges personal health data as a unique information classification, offering a distinct definition for data protection.

Does GDPR apply to US patients?

No, the GDPR does not apply to US citizens based in the United States. However, several federal and state-level privacy regulations offer comparable protections.