HIPAA: Major Changes Ahead for Healthcare Cybersecurity in 2025
New HIPAA Cybersecurity Rules: Stricter Standards
When newly proposed changes take effect, healthcare organizations will be required to meet more stringent cybersecurity standards under updated HIPAA regulations. These major HIPAA updates are being introduced because of the growing threats to electronic Protected Health Information (ePHI). Experts warn that the new rules may be tough to follow, especially for small healthcare providers who don’t have the budget or IT staff to meet the requirements.
The Health Insurance Portability and Accountability Act (HIPAA) has been in effect since 1996, with the Security Rule established in 2005 to protect ePHI. Despite the rise of cyber threats in recent years, the rule has remained largely unchanged, with the last update occurring in 2013. Historically, HIPAA focused more on privacy protections than on cybersecurity, which has left many healthcare organizations vulnerable to increasingly sophisticated digital threats.
Coming HIPAA Changes:
The U.S. Department of Health and Human Services (HHS) has proposed an update to the Security Rule that would introduce much more detailed cybersecurity requirements. These include mandates for multifactor authentication (MFA), encryption, risk assessments, backup and recovery plans, and incident reporting. One of the most significant changes is the elimination of the distinction between “required” and “addressable” implementation specifications. In the past, organizations could choose whether to implement certain security measures based on factors like size and capabilities. Under the proposed update, all healthcare organizations will be required to meet the same cybersecurity standards, regardless of their size or resources.
This change is intended to prevent organizations from exploiting the previous flexibility and avoiding necessary security measures. The goal is to ensure that all healthcare providers, from large hospitals to small private practices, have robust cybersecurity protections in place.
Challenges for Healthcare Organizations:
The proposed cybersecurity rules will likely come with substantial costs. The White House has estimated that implementing these changes could cost the healthcare industry around $9 billion in the first year, with an additional $6 billion in the following years. For smaller organizations, such as independent doctor’s offices or rural hospitals, the costs could range from $100,000 to several million dollars depending on their specific needs and infrastructure.
Many healthcare providers are already operating on thin profit margins, making it difficult for some to afford the necessary upgrades. Smaller organizations, in particular, may find it hard to allocate the resources needed to comply with the new rules, which could leave them vulnerable to cyber risks or failed audits.
Possible Solutions for Smaller Organizations:
One possible solution for smaller healthcare organizations is to work with a managed IT provider or outsourced IT service. This approach allows organizations to access the necessary expertise and resources to meet the new cybersecurity requirements without the cost of hiring full-time staff. A managed IT provider can help implement security strategies, offer ongoing support, and ensure that organizations stay compliant as cyber threats evolve.
Regulated Entities Under HIPAA:
The proposed changes will affect a wide range of healthcare providers, including doctors, hospitals, clinics, dentists, and pharmacies that handle electronic health information. Whether a large medical group or a solo practitioner, all healthcare organizations will need to comply with the new cybersecurity requirements.
These upcoming changes to HIPAA reflect the increasing urgency to protect sensitive patient data in the face of growing cyber threats. While the new regulations are expected to strengthen cybersecurity across the healthcare sector, they also present a significant challenge, particularly for smaller organizations that may struggle with the financial and operational costs of compliance. Intechtel can provide a free consultation and quote for healthcare businesses affected by these changes, helping them navigate the new requirements with tailored solutions.
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Why does your business need a Managed Service Provider (MSP)?
A Managed Service Provider (MSP) helps to secure your data by safeguarding it from cyberattacks and threats, while also handling the day-to-day tech support, maintenance, and monitoring of your computers and networks. A MSP can also help manage your software, cloud apps, and hardware upgrades. If there’s ever an issue, your IT team gets notified and will work to resolve it quickly and efficiently.
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