HIPAA, PCI-DSS, and Sector-Specific Regulations

General privacy laws like GDPR set a baseline for all sectors, but certain industries handle data so sensitive that governments impose additional, sector-specific requirements. Healthcare data involves life-or-death decisions. Financial data enables fraud and identity theft. Payment card data fuels global cybercrime. Sector-specific regulations impose minimum standards that are independently audited, with penalties designed to ensure compliance is not simply treated as a cost of doing business.

The Health Insurance Portability and Accountability Act (HIPAA) is a US federal law that governs the protection of Protected Health Information (PHI). PHI includes any information that identifies a patient and relates to their health condition, treatment, or payment. HIPAA applies to covered entities (healthcare providers, health plans, healthcare clearinghouses) and their business associates (vendors with PHI access, such as cloud providers, billing companies, and EHR systems). Business associates must sign a Business Associate Agreement (BAA).