Are you a business that works with sensitive data? Regulations such as GDPR and HIPAA have been set up by governments to ensure the safety of personal data being collected, stored, used, or transmitted. But while they are both important compliance concerns for businesses in the digital space, it’s essential to understand the finer points of each rule and how they differ from one another. In this blog post, we will be discussing GDPR vs HIPAA compliances: what are the differences?
GDPR vs HIPAA: Top Differences
With cyber-attacks and data breaches on the rise, businesses must comply with regulations and guidelines to safeguard their customers’ data. Two of the most prominent regulations in this regard are GDPR and HIPAA. While both regulations are designed to protect data privacy, they have fundamental differences that every business must understand.
Scope
The General Data Protection Regulation (GDPR) is a regulation by the European Union (EU) that governs data protection and privacy for individuals within the EU and European Economic Area (EEA). The regulation applies to any organization, regardless of their location, that processes personal data of individuals within the EU and EEA.
On the other hand, the Health Insurance Portability and Accountability Act (HIPAA) is a US federal law that governs the security and privacy of individuals’ health information. HIPAA applies to healthcare providers, health plans, and healthcare clearinghouses that transmit health information electronically.
Requirements
GDPR requires businesses to obtain explicit consent from individuals before processing their data, and they must inform individuals about the purpose of data processing, the types of data collected, and how long they will retain the data. GDPR also gives individuals the right to access their data, rectify any inaccuracies, and erase their data.
HIPAA requires businesses to ensure the confidentiality, integrity, and availability of health information, and they must implement administrative, physical, and technical safeguards to protect the data. HIPAA also requires businesses to appoint a Privacy Officer and a Security Officer responsible for ensuring compliance.
Penalties
GDPR has a tiered penalty system, and businesses can face fines of up to €20 million or 4% of their global annual revenue, whichever is higher, for non-compliance.
HIPAA has a similar penalty system, and businesses can face fines of up to $1.5 million per year for non-compliance. Depending on the severity of the violation, businesses may be required to pay more.
How to Become GDPR Compliant?
Businesses should implement the following steps to become GDPR compliant:
- Appoint a Data Protection Officer (DPO) and ensure they are adequately trained on data protection law
- Ensure that you only collect and process data necessary for your business purposes, while making sure all personal data is kept secure
- Provide individuals with clear information regarding their rights under GDPR, such as the right to access and delete their data
- Implement technical measures for keeping personal data secure, including encryption, pseudonymization, and other security safeguards
- Establish procedures for handling requests from individuals concerning their data
- Notify the appropriate regulatory body within 72 hours of any security breach or unauthorized access to personal data.
How to Become HIPAA Compliant?
Businesses should implement the following steps to become HIPAA compliant:
- Appoint a Privacy Officer and Security Officer who are responsible for ensuring compliance with HIPAA regulations
- Implement administrative, physical, and technical safeguards to protect health information
- Provide individuals with clear information regarding their rights under HIPAA such as the right to access and amend their data
- Establish procedures for handling requests from individuals concerning their data
- Develop policies and procedures for responding to security breaches promptly and appropriately.
- Create an audit log of all activities related to protected health information (PHI) .
- Conduct periodic risk assessments to ensure that your security measures are working as intended.
- Provide regular training to staff on how to handle PHI and HIPAA regulations.
Conclusion
While both GDPR and HIPAA aim to protect individuals’ data privacy, they have different scopes, requirements, and penalties. Businesses that operate globally must comply with both regulations to ensure data protection and avoid hefty fines. Therefore, it is crucial to understand the differences between GDPR and HIPAA and implement the necessary measures to comply with both regulations.
Achieve HIPAA and GDPR Compliance with Ease
Data security is now more important than ever, and businesses must take the necessary steps to ensure that their customers’ data is secure. GDPR and HIPAA compliance will not only protect your customers’ data but also give them the peace of mind knowing that their information is safe. If you need any help along the way, Medical ITG can provide the guidance you need to ensure that your business is compliant with both regulations. Contact us today for more information.
