2025 HIPAA Compliance Update: What It Means for Healthcare Providers

Introduction: Why the HIPAA Updates Matter

While HIPAA has undergone updates over the years, 2025 marks the first time in over a decade that it will face significant changes. These updates aim to enhance cybersecurity for ePHI to address the ever-evolving healthcare landscape, the rising frequency of data breaches and cyberattacks, and the compliance gaps observed by the U.S. Department of Health and Human Services (HHS) Office for Civil Rights. The Proposed Rule was published on January 6, 2025, with a comment period open until March 7, 2025.

HIPAA, the Health Insurance Portability and Accountability Act, is one of the most recognized compliance standards in the healthcare industry, impacting the lives of anyone who has ever been a patient. Enacted in 1996, HIPAA was designed to protect the privacy of identifiable health information and ensure the confidentiality, availability, and integrity of electronic Protected Health Information (ePHI).

Navigating compliance updates can be challenging, but this is where partnering with a Managed Service Provider (MSP) like Charles IT can make all the difference. In this blog, we’ll explore the key IT-related updates to the HIPAA Security Rule, explain why these changes are crucial for healthcare providers beyond just "checking the box," and show how Charles IT can help your organization stay compliant and ahead of the curve.

Key IT-Related Updates to the HIPAA Security Rule

The proposed updates to the HIPAA Security Rule in 2025 aim to strengthen standards and implementation specifications by introducing new requirements and clarifying existing ones. One of the most significant changes is the removal of the distinction between “required” and “addressable” implementation specifications, which simplifies compliance expectations. Additionally, the proposal updates definitions and revises implementation specifications to align with advancements in technology and terminology. It also introduces specific compliance timeframes for many existing requirements to ensure more accountability.

Beyond these clarifications, several new mandates have been proposed to enhance cybersecurity and better protect electronic Protected Health Information (ePHI) including:

• Encryption: Require encryption of ePHI both at rest and in transit, with limited exceptions.
  
  
• Multi-Factor Authentication: Mandate the use of multi-factor authentication for all access points, with limited exceptions.
  
  
• Vulnerability and Penetration Testing: Implement regular vulnerability scans at least every six months and penetration testing at least annually.
  
  
• Enhanced Risk Analysis: Require a detailed asset inventory, network mapping, and thorough threat assessments.
  
  
• Strengthened Contingency Planning: Expand requirements for contingency planning and incident response measures.
  
  
• Annual Audits: Introduce annual compliance audits and certifications for both covered entities and business associates.

Why These Changes Are Crucial for Healthcare Providers

The U.S. Department of Health and Human Services (HHS) isn’t proposing changes to HIPAA simply for the sake of updates but to address the increasing frequency and severity of cyberattacks on healthcare organizations. Per legal firm Morgan Lewis, the HHS highlights the significance of these changes, stating, “[The changes] would likely reduce the number of breaches of ePHI and mitigate the effects of breaches that nonetheless occur.” They even justify the estimated $34 billion cost of implementing these updates over five years, noting that “if the proposed changes in the NPRM reduce the number of individuals affected by breaches by 7 to 16 percent, the revised Security Rule would pay for itself.”

For healthcare providers, these updates represent an important opportunity to safeguard their organizations against the devastating effects of breaches, which are alarmingly common in the industry. In 2024 alone, the Department of Health and Human Services' Office for Civil Rights reported 677 major health data breaches affecting more than 182.4 million people as of early December. These proposed updates aim to minimize such breaches and better protect patient data, especially as more organizations operate in cloud-based environments. While the cloud offers many benefits, it also creates vulnerabilities that hackers can exploit but protections introduced by these updates directly address these risks.

Additionally, the proposed clarifications and simplifications to the existing HIPAA rules are designed to help healthcare organizations more easily achieve and maintain compliance. While compliance is clearly essential for protecting patient information, the cost of non-compliance is simply too high. Financial penalties, reputational damage, and operational disruptions can be devastating for any organization, but in a healthcare setting, such disruptions can literally mean the difference between life and death. It could even then be said that these updates are a crucial step in ensuring patient safety.

How Charles IT Can Help You Stay Ahead

The importance of the proposed HIPAA Security Rule updates is clear. However, for healthcare organizations, achieving and maintaining compliance with these updates can feel overwhelming, especially when their primary focus is on delivering patient care. This is where Managed Service Providers (MSPs) like Charles IT step in, offering expert guidance and solutions that allow providers to prioritize patients while leaving compliance in capable hands.

Charles IT specializes in high-end services tailored to healthcare organizations, ensuring compliance with HIPAA while enhancing overall IT security and efficiency. Here’s how Charles IT can help your organization stay ahead:

✅Proactive Compliance Support

Charles IT’s Managed Compliance services are designed to align with your business’s specific goals and regulatory requirements. With the added expertise of our virtual Chief Information Security Officer (vCISO), healthcare providers gain access to experienced cybersecurity professionals who act as an extension of their team. Our compliance services include:

• • Comprehensive Risk Assessments: Tailored to meet the new HIPAA requirements, these assessments ensure your organization is always audit-ready.
    
    
  • Policy and Procedure Documentation: We create and maintain documentation that aligns with regulatory standards, simplifying the audit process.
    
    

 ✅Cutting-Edge Security Solutions

Charles IT takes a proactive, holistic approach to cybersecurity. Not only do we implement and manage advanced security measures to meet the latest regulatory standards, but we also prepare your organization to respond effectively to breaches, should they occur. Our security solutions include:

• • Advanced Encryption and Multi-Factor Authentication: Ensuring the protection of ePHI at rest and in transit.
    
    
  • Regular Vulnerability Testing and Network Segmentation: Identifying and mitigating risks to safeguard your IT infrastructure.
    
    
  • Comprehensive Business Continuity and Disaster Recovery Plans: Ensuring your organization can maintain operations and recover quickly in the event of a breach.

✅What Sets Charles IT Apart

What truly differentiates Charles IT from other MSPs is our human-first, white-glove service approach, which delivers:

• • High-Touch, Personalized IT Support: We prioritize your unique needs, simplifying compliance processes and ensuring a seamless experience.

• • Expert IT Strategy Alignment: Our team works closely with you to ensure your IT strategy aligns with your business objectives, driving operational success while staying compliant.

Partnering with Charles IT means more than just meeting new HIPAA requirements, it means gaining a trusted IT partner dedicated to your organization’s success. We take care of the complexities of compliance and security, so you can focus on what providing exceptional care to your patients.

Conclusion: Partner with Charles IT for Seamless HIPAA Compliance

With significant updates to HIPAA on the horizon, the time to act is now. Preparing for these changes before they are implemented is crucial to ensure your organization remains compliant and protected against potential cyber threats. Don’t wait until it’s too late, schedule a consultation with Charles IT today.

Our team can assess your organization’s current compliance posture, identify areas for improvement, and implement solutions to help you navigate the proposed updates with ease.

For more information about HIPAA compliance and how Charles IT can support your organization, schedule a call with our HIPAA expert now.  Your compliance success starts here!