X Close Search

How can we assist?

Demo Request

CCPA vs HIPAA: Key Differences for Healthcare

Explore the essential differences between CCPA and HIPAA for healthcare organizations, focusing on compliance, data protection, and privacy rights.

Post Summary

Healthcare organizations often face the challenge of complying with both HIPAA and CCPA, two laws with distinct purposes. HIPAA focuses on protecting patient health information (PHI), while CCPA grants California residents control over their personal data. The overlap arises when healthcare providers handle PHI for medical purposes (regulated by HIPAA) and non-medical data, such as website analytics or marketing information (regulated by CCPA).

Key Points to Know:

  • HIPAA applies to healthcare providers, health plans, and business associates handling PHI.
  • CCPA applies to businesses meeting certain thresholds, like $25M+ revenue or data on 50,000+ California residents annually.
  • PHI under HIPAA is exempt from CCPA, but non-health data (e.g., marketing or website data) must comply with CCPA.
  • Healthcare organizations must separate PHI from other personal data and implement distinct compliance measures for each.

Quick Comparison:

Aspect HIPAA CCPA
Focus Protects PHI in healthcare Protects personal data of California residents
Scope Healthcare-specific Industry-agnostic
Rights Patients can access and amend PHI Consumers can request data access, deletion, or opt-out
Applicability Applies to healthcare providers, plans, and associates Applies to businesses meeting thresholds
Exemptions Always applies to PHI Exempts HIPAA-covered PHI

Healthcare organizations must implement data classification systems, conduct risk assessments, and use tools like Censinet RiskOps™ to manage compliance for both laws effectively.

Debbie Reynolds “The Data Diva” explains the privacy implications of complying with CCPA and HIPAA

Which Healthcare Organizations Must Follow CCPA and HIPAA

Determining which organizations are subject to CCPA and HIPAA is essential for compliance. While HIPAA focuses on specific healthcare entities, the CCPA applies more broadly, targeting businesses based on their size and data practices.

Healthcare Organizations That Must Follow HIPAA

HIPAA governs covered entities and their business associates within the healthcare sector. Covered entities fall into three main groups: healthcare providers, health plans, and healthcare clearinghouses that transmit health information electronically.

  • Healthcare providers: This includes hospitals, medical practices, nursing homes, pharmacies, and mental health facilities. Even solo practitioners who transmit data electronically must comply with HIPAA.
  • Health plans: These include health insurance companies, Medicare and Medicaid programs, employer-sponsored health plans, and HMOs. These entities handle Protected Health Information (PHI) for tasks like claims processing and member services.
  • Business associates: These are third-party vendors that manage PHI on behalf of covered entities. Examples include medical billing companies, cloud storage providers, EHR vendors, and IT support services. Over time, the business associate category has expanded to include services like transcription, cybersecurity, and more.

Healthcare Organizations That Must Follow CCPA

The CCPA applies to healthcare organizations based on business thresholds, not their industry classification. Any healthcare entity meeting one of the following criteria must comply:

  • Annual gross revenue over $25 million.
  • Buying or selling personal information of 50,000 or more California residents annually.
  • Deriving 50% or more of annual revenue from selling personal information of California residents.

Large hospital systems like Kaiser Permanente, Sutter Health, and Cedars-Sinai meet the revenue threshold and must adhere to CCPA for non-PHI data activities. This includes areas like website analytics, marketing campaigns, patient surveys, and employee data.

Health insurance companies operating in California, such as Blue Cross Blue Shield of California and Health Net, also fall under CCPA. They handle personal information beyond PHI, such as marketing preferences, website interaction data, and customer service records.

Healthcare technology companies serving California residents - like those offering patient portals, telehealth platforms, or wellness apps - must evaluate their California data to assess CCPA compliance.

Smaller healthcare practices might also be subject to CCPA if they process significant amounts of California residents' personal data, even if their revenue is under $25 million. For example, a small practice with a robust digital marketing strategy could easily exceed the 50,000-resident threshold.

These distinctions create complex overlaps, especially when considering HIPAA's PHI exemption under CCPA.

How CCPA's HIPAA Exemption Works

Once organizations identify their regulatory thresholds, it’s essential to understand how HIPAA’s protections intersect with CCPA’s requirements. The CCPA includes a specific exemption for PHI governed by HIPAA, but this exemption has limits.

The exemption applies only to data that qualifies as PHI under HIPAA and is handled by HIPAA-covered entities or business associates. For example:

  • PHI is exempt when used for treatment, payment, or healthcare operations as defined by HIPAA. Medical records, billing details, and clinical data exchanged between providers fall under HIPAA’s domain. This means hospitals don’t need to comply with CCPA deletion requests for medical records or allow patients to opt out of sharing diagnostic information with specialists.

However, non-health information collected by healthcare organizations is subject to CCPA. Examples include:

  • Website cookies tracking patient portal usage.
  • Email addresses gathered for newsletters.
  • Survey responses about amenities like parking or cafeteria services.
  • Employee personal information unrelated to healthcare operations.

The line between PHI and personal information can be tricky. For instance, a hospital’s patient satisfaction survey might include responses about medical care (PHI) and feedback on parking or food services (personal information under CCPA). Organizations must analyze their data collection practices to determine which law applies.

Marketing data is another area where CCPA takes precedence. Personal information collected for advertising, social media campaigns, or promotional events falls under CCPA, even if the individual is also a patient with PHI on file. Separate compliance measures are required for marketing-related data.

Ultimately, healthcare organizations must establish distinct processes for managing PHI under HIPAA and personal data under CCPA. This dual approach ensures compliance with both regulations while safeguarding the privacy of individuals.

Main Differences in Data Privacy and Security Rules

Both the CCPA and HIPAA aim to safeguard personal information, but their approaches are distinct. Healthcare organizations need to grasp these differences to ensure their compliance strategies address the unique requirements of each law. Let’s break down the specifics of how each law handles data protection.

Privacy and Security Protection Requirements

HIPAA and CCPA outline different frameworks for protecting sensitive data. Here's how they compare:

  • HIPAA focuses on securing Protected Health Information (PHI) through a combination of administrative, physical, and technical measures. This includes encrypting PHI, enforcing strict access controls, maintaining detailed audit logs, conducting regular risk assessments, training employees, and securing agreements with business associates.
  • CCPA, on the other hand, emphasizes consumer rights. It grants California residents the ability to know what data is collected about them, request its deletion, opt out of data sales, and avoid discriminatory practices based on these choices. Healthcare organizations must respond to such consumer requests within 45 days, maintain clear and transparent data records, and publish user-friendly privacy notices.

What Data Each Law Covers

The scope of data protection under HIPAA and CCPA differs significantly:

  • HIPAA is specific to PHI, which includes individually identifiable health information like medical records, billing details, and prescription data.
  • CCPA casts a wider net, covering any information that identifies or relates to a California resident. This includes non-medical data, such as website usage analytics, survey responses, and even purchase histories.

De-Identification and Anonymization Rules

Both laws recognize that de-identifying data can reduce regulatory burdens, but they define and handle the process differently:

  • HIPAA offers two de-identification methods:
    • The Safe Harbor method, which requires the removal of 18 specific identifiers.
    • The Expert Determination method, where a qualified expert uses statistical analysis to confirm that the risk of re-identification is minimal [1][2]. Once data is de-identified under HIPAA, it is no longer subject to its regulations.
  • CCPA defines de-identified data as information that cannot reasonably identify a consumer or household. However, even data de-identified under HIPAA could still fall under CCPA’s scope if it can be linked back to an individual using other identifiers.

Understanding these nuances is crucial for healthcare organizations managing both medical and non-medical data, ensuring compliance with both laws' unique requirements.

sbb-itb-535baee

How Healthcare Organizations Can Meet Both Requirements

Navigating compliance with both CCPA and HIPAA calls for a clear, strategic plan that addresses the unique demands of each law. Healthcare organizations can tackle this challenge by focusing on smart data management, regular evaluations, and leveraging the right technological tools.

Separating PHI from Other Personal Data

The first step toward compliance is drawing distinct lines between Protected Health Information (PHI), which falls under HIPAA, and other personal data that may be subject to CCPA.

To achieve this, implement data classification systems that categorize information based on type and regulatory requirements. For example, patient medical records, billing details, and prescription information should be tagged as PHI and handled according to HIPAA's strict security standards. On the other hand, data like website analytics, marketing communications, and patient satisfaction surveys require separate procedures to meet CCPA guidelines.

Access controls are equally important in maintaining this separation. Employees should only access the data necessary for their roles. For instance, marketing teams working on patient outreach campaigns should not have access to medical records, while clinical staff likely don’t need data such as survey responses or website usage statistics.

Additionally, document how data is collected, stored, and used to ensure compliance. This documentation is crucial for responding to CCPA consumer requests without risking the confidentiality of HIPAA-protected information.

Conducting Risk and Privacy Assessments

Routine risk and privacy assessments are vital for identifying compliance gaps and addressing vulnerabilities before they lead to violations. These evaluations should cover both cybersecurity risks and privacy compliance for all types of data.

HIPAA risk assessments should focus on safeguards for PHI, including encryption practices, access controls, audit logging, and business associate agreements. Any weaknesses identified must be documented and addressed promptly to maintain compliance.

CCPA compliance assessments should review privacy notices, data collection methods, and procedures for responding to consumer requests. Healthcare organizations must ensure they can identify all personal information related to California residents and meet the 45-day deadline for responding to deletion or access requests.

Patient portals, which often contain both PHI and non-medical personal data, require special attention. These systems must adhere to HIPAA’s rigorous security standards while also meeting CCPA’s transparency requirements. Specialized technology can simplify these assessments, making them more manageable over time.

Using Technology Platforms for Risk Management

Technology platforms, such as Censinet RiskOps™, offer powerful tools to streamline compliance efforts and manage risks effectively.

These platforms simplify risk assessments for both internal systems and third-party vendors, helping organizations detect and address compliance gaps early. With automated workflows and centralized dashboards, healthcare teams can monitor progress on both HIPAA and CCPA requirements in one place.

For instance, Censinet AITM™ automates tasks like completing security questionnaires and summarizing evidence. This reduces the time and resources needed for compliance while ensuring human oversight remains central to critical decisions.

The platform also supports a collaborative risk network, allowing healthcare organizations to share insights and compare their compliance efforts with industry standards. This fosters quicker adoption of best practices and a deeper understanding of how to meet regulatory demands.

When managing vendor relationships, platforms like Censinet RiskOps™ provide tools for assessing third-party risks. These capabilities address both HIPAA’s business associate requirements and CCPA’s vendor management obligations, ensuring all partners adhere to required data protection standards.

CCPA vs HIPAA Comparison Table

The table below outlines the key differences between CCPA and HIPAA, focusing on how each addresses the protection of healthcare-related data.

Aspect CCPA HIPAA
Primary Focus Protects personal information of California residents across various industries Safeguards Patient Health Information (PHI) in healthcare settings
Data Covered Covers a wide range of personal data, including names, contact details, and online activity; also applies to non-health data collected by healthcare organizations Focuses on medical records, billing details, treatment information, and other health-related data
Consumer/Patient Rights Gives consumers the right to know what data is collected, request deletion of data, and opt out of data sales Grants patients the right to access and amend their medical records and request restrictions on PHI use
Applicable Organizations Applies to any organization collecting personal data from California residents, including healthcare organizations for non-PHI data Applies to healthcare providers, health plans, clearinghouses, and business associates handling PHI
Exemptions Excludes PHI used for treatment, payment, and healthcare operations if already protected under HIPAA Always applies to PHI, regardless of its use

This comparison highlights the unique regulatory requirements of CCPA and HIPAA, setting the stage for understanding compliance strategies in the next section.

Key Points for Healthcare Organizations

Healthcare organizations face a unique challenge: navigating the regulatory landscape of both the CCPA and HIPAA. Understanding the differences between these two frameworks is essential for developing effective strategies to safeguard both personal health information (PHI) and consumer data.

Managing Complex Data Privacy Requirements

The CCPA is designed to protect the personal information of California residents across all types of business activities. In contrast, HIPAA is focused on safeguarding patient health information specifically within healthcare environments. This dual focus creates a complex situation. For example, patient appointment scheduling systems may collect contact details that fall under the CCPA, while the medical records generated from those appointments are governed by HIPAA. To handle this, healthcare organizations need to establish tailored strategies for managing PHI and non-PHI data separately.

Matt Christensen, Senior Director of GRC at Intermountain Health, highlights the complexity of this challenge:

"Healthcare is the most complex industry... You can't just take a tool and apply it to healthcare if it wasn't built specifically for healthcare." [3]

Given this complexity, leveraging the right technology is essential for compliance management.

How Technology Helps with Compliance

Specialized technology platforms are becoming indispensable for managing the dual compliance demands of the CCPA and HIPAA. Solutions like Censinet RiskOps™ are designed to simplify this process. By automating workflows and reducing manual effort, these platforms not only ensure compliance but also free up valuable staff time.

Terry Grogan, CISO at Tower Health, shares the impact of using Censinet RiskOps™:

"Censinet RiskOps allowed 3 FTEs to go back to their real jobs! Now we do a lot more risk assessments with only 2 FTEs required." [3]

Additionally, Censinet AI™ enhances efficiency even further by automating tasks like security questionnaires and risk reporting. While automation handles repetitive processes, critical decisions remain under human oversight, ensuring a balance between technology and expert judgment.

FAQs

What steps can healthcare organizations take to separate PHI from other personal data to meet both HIPAA and CCPA compliance?

Healthcare organizations aiming to comply with both HIPAA and CCPA should prioritize de-identifying protected health information (PHI). Methods such as anonymization or pseudonymization are effective for removing or masking identifiers that connect data to individuals. Once this is done, the data is no longer considered PHI under HIPAA, while still aligning with CCPA's privacy requirements.

Equally important is the adoption of robust data governance policies. These policies should focus on classifying and separating PHI from other personal data types. By clearly defining these categories and managing them effectively, healthcare organizations can better protect sensitive information and meet the distinct requirements of both regulations.

How can healthcare organizations ensure compliance with CCPA for non-health data collected during their operations?

Healthcare organizations can navigate CCPA compliance for non-health data by focusing on strong data management strategies. Start with data discovery and mapping to pinpoint all personal information collected and processed. This helps create a clear picture of where sensitive data resides. Next, implement data retention policies that ensure personal data is kept only as long as necessary. Automating consumer rights requests - like access, deletion, and opt-out requests - can further simplify compliance.

Equally important are data privacy policies that outline clear guidelines for handling personal information. Regular employee training on compliance requirements ensures staff understand their roles in safeguarding data. Finally, adopting data governance frameworks helps standardize, secure, and manage data effectively across the organization. Together, these steps protect personal information and align with CCPA regulations.

What are the key differences in de-identification requirements between HIPAA and CCPA, and how do they impact healthcare organizations?

Healthcare organizations are required by HIPAA to de-identify protected health information (PHI) through one of two approaches: Safe Harbor or Expert Determination. The Safe Harbor method involves stripping away 18 specific identifiers, such as names, addresses, and Social Security numbers. Alternatively, the Expert Determination method requires a qualified expert to confirm that the risk of re-identification is extremely low. Once data is properly de-identified, it is no longer subject to HIPAA regulations.

The CCPA, on the other hand, takes a broader stance on what qualifies as de-identified data. It states that the data must not reasonably identify, relate to, or link back to an individual, but it doesn’t prescribe specific methods for achieving this. This lack of detailed guidance leaves organizations with more flexibility but also more room for interpretation.

For healthcare providers handling data governed by both HIPAA and CCPA, balancing these differing standards is essential. A thorough understanding of each law’s requirements is key to safeguarding patient privacy and avoiding any legal missteps.

Related Blog Posts

Key Points:

Censinet Risk Assessment Request Graphic

Censinet RiskOps™ Demo Request

Do you want to revolutionize the way your healthcare organization manages third-party and enterprise risk while also saving time, money, and increasing data security? It’s time for RiskOps.

Schedule Demo

Sign-up for the Censinet Newsletter!

Hear from the Censinet team on industry news, events, content, and 
engage with our thought leaders every month.

Terms of Use | Privacy Policy | Security Statement | Crafted on the Narrow Land