SOC 2 vs HIPAA: Which Do You Need?
SOC 2 and HIPAA serve different purposes but are often required together for healthcare technology companies. SOC 2 demonstrates your security practices to enterprise customers, while HIPAA compliance is legally required when handling protected health information (PHI).
Quick Comparison
| Factor | SOC 2 | HIPAA |
|---|---|---|
| Type | Voluntary audit framework | Federal law (mandatory) |
| Purpose | Demonstrate security controls | Protect patient health information |
| Scope | Any service organization | Healthcare entities handling PHI |
| Control Count | 64 controls (5 TSC categories) | 18 safeguards (3 categories) |
| Certification | CPA audit report | No official certification |
| Cost Range | $25,000 - $75,000 | $20,000 - $50,000 |
| Timeline | 6-12 months | 3-9 months |
| Penalties | Lost business opportunities | $100 - $1.5M+ per violation |
Understanding the Key Differences
SOC 2: Proving Your Security
SOC 2 is a voluntary audit framework developed by the AICPA. It demonstrates that your organization has implemented proper security controls across five Trust Service Criteria: Security, Availability, Confidentiality, Processing Integrity, and Privacy.
SOC 2 Trust Service Criteria:
- • Security (Required): Protection against unauthorized access
- • Availability: System uptime and accessibility
- • Confidentiality: Protection of confidential information
- • Processing Integrity: Accurate and timely data processing
- • Privacy: Personal information handling
HIPAA: Protecting Patient Data
HIPAA (Health Insurance Portability and Accountability Act) is a federal law that requires organizations handling Protected Health Information (PHI) to implement specific safeguards. Unlike SOC 2, HIPAA compliance is mandatory—not optional.
HIPAA Safeguard Categories:
- • Administrative Safeguards: Policies, procedures, workforce training
- • Physical Safeguards: Facility access, workstation security
- • Technical Safeguards: Access controls, encryption, audit logs
You Need SOC 2 If:
- ✓ You sell to enterprise customers who require security audits
- ✓ You're a SaaS or cloud service provider
- ✓ Customers request SOC 2 reports during procurement
- ✓ You want competitive advantage in security-conscious markets
- ✓ You need to demonstrate security practices to investors
You Need HIPAA If:
- ✓ You're a Covered Entity (healthcare provider, health plan, clearinghouse)
- ✓ You're a Business Associate handling PHI for Covered Entities
- ✓ Your product stores, processes, or transmits patient health data
- ✓ You integrate with EHRs or healthcare systems
- ✓ You provide services to healthcare organizations
You Need BOTH If:
- ✓ You're a health tech startup selling to hospitals or health plans
- ✓ You handle PHI AND serve enterprise healthcare customers
- ✓ HIPAA is legally required, but customers also ask for SOC 2
- ✓ You want to differentiate from competitors in healthcare
- ✓ You're targeting large healthcare systems with strict vendor requirements
Control Overlap: 65-75%
SOC 2 and HIPAA share significant overlap in their security requirements. If you're pursuing both, you can leverage many of the same controls and evidence.
Overlapping Controls
- • Access control and authentication
- • Encryption (data at rest and in transit)
- • Audit logging and monitoring
- • Incident response procedures
- • Security awareness training
- • Vendor risk management
- • Change management processes
Key Differences
- • HIPAA requires Business Associate Agreements
- • HIPAA has specific breach notification rules (60 days)
- • SOC 2 includes availability and processing integrity
- • HIPAA mandates minimum necessary access
- • SOC 2 requires formal audit by CPA
- • HIPAA has specific PHI disposal requirements
Timeline Comparison
SOC 2 Timeline
- Type 1: 2-4 months
- Type 2: 6-12 months (3-12 month observation)
- With automation: 30-60 days faster
HIPAA Timeline
- Risk Assessment: 2-4 weeks
- Implementation: 2-6 months
- Total: 3-9 months typical
Pursuing Both Frameworks
For health tech companies, pursuing both SOC 2 and HIPAA together is often the smartest approach. Here's why and how:
Common Questions
Does SOC 2 satisfy HIPAA requirements?
No. While there's significant overlap, SOC 2 doesn't cover all HIPAA requirements (like BAAs and specific PHI handling rules). You need both if HIPAA applies to you.
Is there a "HIPAA certification"?
No. Unlike SOC 2, there's no official HIPAA certification. You can get third-party assessments and attestations, but HHS doesn't certify HIPAA compliance.
Which should I do first?
If you handle PHI, start with HIPAA—it's legally required. Then add SOC 2 to meet enterprise customer requirements. Ideally, pursue both simultaneously to leverage control overlap.
Achieve SOC 2 + HIPAA efficiently
LowerPlane maps shared controls between SOC 2 and HIPAA, allowing you to reuse 70% of evidence and reduce compliance costs by 35%.