If you’re handling sensitive data, especially in the health sector, you’ve probably heard of both SOC 2 and HIPAA. But while they’re often mentioned in the same breath, they’re not interchangeable.
Let’s clear the confusion.
SOC 2: A Voluntary Standard for Data Security
SOC 2 is a voluntary compliance framework developed by the American Institute of CPAs (AICPA). It’s designed to evaluate how service providers handle data based on five Trust Service Criteria:
If you’re a SaaS company, cloud provider, or IT service vendor, clients may ask you for a SOC 2 report as proof that your internal systems meet modern security standards.
SOC 2 is especially important when your clients are in regulated industries or operate in enterprise environments.
You can choose between:
Type I: Point-in-time snapshot of controls
Type II: Monitored over 3–12 months (much more credible)
SOC 2 isn’t required by law, but it’s increasingly expected in B2B contracts.
HIPAA: A Mandatory Law for Health Data Protection
HIPAA (Health Insurance Portability and Accountability Act) is a federal law in the U.S. that mandates how Protected Health Information (PHI) is handled.
It applies to:
Covered entities: healthcare providers, insurance plans, clearinghouses
Business associates: any third party that handles PHI on behalf of a covered entity (this includes many SaaS providers)
HIPAA enforces both:
Privacy Rule: How PHI can be used/shared
Security Rule: How PHI must be protected technically and administratively
Violations can lead to massive fines, reputational damage, and legal action.
If your product touches any health data in the U.S., HIPAA is not optional.
SOC 2 vs HIPAA: The Key Differences
| Aspect | SOC 2 | HIPAA |
|---|---|---|
| Legal Requirement | Voluntary | Mandatory |
| Audience | Any B2B clients | U.S. healthcare market |
| Scope | General data security | Health data protection (PHI) |
| Audit Process | CPA firms, AICPA standards | Self-audit or OCR enforcement |
| Framework | Trust Service Criteria | HIPAA Privacy & Security Rule |
Do You Need SOC 2, HIPAA, or Both?
Here’s a simple way to think about it:
Only HIPAA: If you’re a healthcare provider or a tightly regulated business associate, and clients don’t ask for SOC 2.
Only SOC 2: If you handle non-health sensitive data and want to build client trust.
Both: If you’re a tech vendor that processes health data AND needs to win enterprise clients.
🧠 Pro tip: SOC 2 can support your HIPAA efforts, but it doesn’t replace it.
Can SOC 2 Help You Become HIPAA Compliant?
Yes, to a point.
SOC 2 Type II reports can demonstrate your company’s commitment to security and good internal controls. Many SOC 2 controls overlap with HIPAA’s requirements like access control, incident response, and encryption.
But HIPAA has unique requirements, including:
Business Associate Agreements (BAAs)
Specific definitions of PHI
Mandatory breach notification timelines
So: SOC 2 is helpful, but not sufficient.
How to Prepare for Both at Once
If you suspect you’ll need both frameworks:
Map overlapping controls between SOC 2 and HIPAA
Adopt shared best practices: access management, staff training, secure architecture
Use a tool like Humadroid to:
Centralize policies and procedures
Track acknowledgements and access
Organize security documentation
Partner with HIPAA-versed auditors or legal advisors
Getting ahead of these frameworks can save you months of remediation later.
Final Thoughts
SOC 2 and HIPAA don’t compete, they complement each other.
Understanding the difference can help you:
Avoid legal risks
Build trust with partners and customers
Scale into new markets with confidence
