SOC 2 vs HIPAA: What's the Difference?
These aren't really competitors. SOC 2 is a voluntary security attestation that proves your controls to any enterprise buyer. HIPAA is a US federal law you must follow if you handle protected health information (PHI) — and there's no certificate for it. Health-tech companies frequently need both.
SOC 2 vs HIPAA at a Glance
A side-by-side look at how the two frameworks differ on purpose, cost, process, and recognition.
| SOC 2 | HIPAA | |
|---|---|---|
| What it is | Voluntary attestation report | Mandatory US federal law |
| Proof | CPA-issued SOC 2 report | Risk assessment / audit (no official cert) |
| Typical cost | $5,000–$60,000 (from $2,500 on AuditNex) | $2,000–$50,000 risk assessment / audit |
| Applies to | Any company wanting to prove security | Anyone handling PHI (health data) |
| Penalty for skipping | Lost deals | Federal fines and legal liability |
| Best for | B2B SaaS proving security broadly | Healthcare providers & their vendors |
Which Do You Need?
You need SOC 2 if…
- ✓Enterprise customers ask for a security report
- ✓You want one credential that works across industries
- ✓You're proving general security, not health-specific rules
- ✓You sell SaaS to non-healthcare buyers too
You need HIPAA if…
- ✓You create, receive, store, or transmit PHI
- ✓You're a healthcare provider, plan, or clearinghouse
- ✓You're a vendor (business associate) to one of those
- ✓A healthcare customer requires a BAA
How Much They Overlap
SOC 2 vs HIPAA FAQ
Is SOC 2 the same as HIPAA?
No. SOC 2 is a voluntary attestation where a CPA firm reports on your security controls. HIPAA is a mandatory US federal law that applies to anyone handling protected health information. SOC 2 produces a report; HIPAA has no official certificate. They serve different purposes and many companies need both.
Do I need both SOC 2 and HIPAA?
Often yes, if you're a health-tech company. HIPAA is legally required when you handle PHI, while SOC 2 is what enterprise customers ask for to prove your general security. Because their controls overlap, pursuing both together costs less than doing each separately.
Is SOC 2 or HIPAA more expensive?
It depends on scope. A SOC 2 audit commonly runs $5,000–$60,000 (and starts at $2,500 on the AuditNex network). A HIPAA risk assessment or third-party audit runs $2,000–$50,000. HIPAA's remediation and, if required, a HITRUST certification can push its total higher.
Does a SOC 2 report make me HIPAA compliant?
Not by itself. A SOC 2 report can demonstrate strong security controls that overlap with HIPAA's Security Rule, and some SOC 2 reports add HIPAA-mapped criteria. But HIPAA also includes Privacy and Breach Notification rules and legal obligations like Business Associate Agreements that a standard SOC 2 doesn't cover.
Not Sure Which One You Need?
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