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Module 3 of 5
HIPAA Privacy Basics

The Security Rule

Safeguarding electronic Protected Health Information through administrative, physical, and technical controls — and how to perform a risk analysis that satisfies regulators.

45 CFR Parts 160 & 164 Subparts A & C

Module Overview

What You'll Learn

Lessons 9–10

  • Security Rule scope: ePHI only
  • CIA Triad: Confidentiality, Integrity, Availability
  • Required vs. Addressable specifications
  • Risk analysis: 5-step process

Lessons 11–12

  • Administrative safeguards (9 standards)
  • Physical safeguards (4 standards)
  • Technical safeguards (4 standards)
  • Encryption safe harbor
Security Rule Scope

ePHI Only — But Broadly Defined

What the Security Rule Covers

Electronic Protected Health Information (ePHI) — any PHI created, received, maintained, or transmitted in electronic form. Applies to all covered entities and business associates.

Includes: EHRs, emails, text messages, lab results, scanned documents, data in cloud storage.

What It Does Not Cover

Paper records and oral communications are not subject to the Security Rule — but they are subject to the Privacy Rule. The Security Rule narrows to the electronic medium only.

PHI in voicemail or fax: Privacy Rule applies; Security Rule does not.

45 CFR § 164.302 | 45 CFR § 160.103 (definition of electronic protected health information)

Core Framework

The CIA Triad

C

Confidentiality

ePHI is not made available or disclosed to unauthorized persons or processes. Access controls, encryption, and authentication are key mechanisms.

I

Integrity

ePHI is not altered or destroyed in an unauthorized manner. Audit controls, checksums, and version control help ensure data has not been tampered with.

A

Availability

ePHI is accessible and usable by authorized persons on demand. Disaster recovery, backup, and uptime planning protect against data loss and downtime.

45 CFR § 164.306(a) — General Requirements

Specification Types

Required vs. Addressable Specifications

REQUIRED

Must be implemented. No flexibility. If the standard lists a specification as required, the covered entity or BA must implement it, full stop.

Examples: Risk Analysis, Contingency Plan, Unique User Identification

ADDRESSABLE

Must assess whether reasonable and appropriate. If yes, implement it. If not reasonable, document why, and implement an equivalent alternative measure — or document that no alternative exists.

Examples: Encryption, Automatic Logoff, Workstation Security

Common misconception: "Addressable" does not mean "optional." Failure to implement or document is a HIPAA violation.

45 CFR § 164.306(d)

Administrative Safeguards

Risk Analysis: 5-Step Process

1
Scope the Assessment

Identify all systems, applications, and locations where ePHI is created, received, maintained, or transmitted.

2
Identify Threats & Vulnerabilities

Document reasonably anticipated threats (ransomware, insider misuse, hardware failure, natural disaster) and system vulnerabilities that could be exploited.

3
Assess Current Controls

Evaluate the effectiveness of existing technical, administrative, and physical safeguards in reducing the likelihood or impact of threats.

4
Determine Likelihood & Impact

Assign probability and impact ratings to each threat-vulnerability combination. Produce a risk level (e.g., High / Medium / Low).

5
Document & Implement Risk Management

Prioritize risks and create a remediation plan. The risk analysis and risk management plan must be documented and updated when operations change.

45 CFR § 164.308(a)(1) — Security Management Process (Required specification)

Safeguard Category 1 of 3

Administrative Safeguards — 9 Standards

Security Management Process REQ

Risk analysis, risk management, sanction policy, information system activity review

Assigned Security Responsibility REQ

Designate a Security Officer responsible for HIPAA security policies

Workforce Security ADDR

Authorization procedures, workforce clearance, termination procedures

Information Access Management ADDR

Access authorization, establishment, and modification

Security Awareness Training ADDR

Security reminders, malware protection, log-in monitoring, password management

Security Incident Procedures REQ

Response and reporting of security incidents

Contingency Plan REQ

Data backup, disaster recovery, emergency mode operations, testing, applications criticality

Evaluation REQ

Periodic technical and non-technical evaluation of security controls

Business Associate Contracts REQ

Written BAAs with all BAs who create, receive, or maintain ePHI

45 CFR § 164.308

Safeguard Category 2 of 3

Physical Safeguards — 4 Standards

Facility Access Controls ADDR

Contingency operations, facility security plan, access control and validation, maintenance records. Limit physical access to facilities housing ePHI systems.

Workstation Use REQ

Document proper functions of workstations that access ePHI and the physical environment in which they operate. Define acceptable use policies.

Workstation Security REQ

Implement physical safeguards to restrict access to authorized users only — screen privacy filters, locked doors, cable locks, positioned away from public view.

Device & Media Controls ADDR

Disposal, media re-use, accountability, and data backup/storage. Secure destruction of hard drives, USB media, and paper before disposal.

45 CFR § 164.310

Safeguard Category 3 of 3

Technical Safeguards — 4 Standards

Access Control REQ

  • Unique user identification (required)
  • Emergency access procedure (required)
  • Automatic logoff (addressable)
  • Encryption/decryption (addressable)

Audit Controls REQ

Hardware, software, and procedural mechanisms to record and examine activity in systems containing ePHI. Audit logs must be retained and regularly reviewed.

Integrity Controls ADDR

Implement mechanisms to corroborate that ePHI has not been altered or destroyed in an unauthorized manner — checksums, hash verification, message authentication codes.

Transmission Security ADDR

Implement technical security measures to guard against unauthorized access to ePHI transmitted over electronic networks. Encryption of ePHI in transit is the primary mechanism.

45 CFR § 164.312

Strategic Protection

Encryption Safe Harbor

What Is the Safe Harbor?

Under the Breach Notification Rule (45 CFR § 164.402), if lost or stolen ePHI was rendered unusable, unreadable, or indecipherable to unauthorized individuals, the incident is not a reportable breach.

NIST-approved encryption (AES-128 minimum) satisfies this standard for data at rest and in transit.

Practical Implications

  • Encrypt laptops, phones, USB drives storing ePHI
  • Encrypt ePHI in transit (TLS 1.2+ for email and APIs)
  • Encrypt cloud storage containing ePHI
  • A properly encrypted stolen laptop = no breach notification required
  • Encryption key must be protected separately from encrypted data

45 CFR § 164.402 | HHS Guidance on NIST Encryption Standards (Feb. 2010)

Putting It Together

Security Rule Compliance: What OCR Looks For

Most Common Security Rule Failures

  • No documented risk analysis (most frequent)
  • Incomplete or outdated risk analysis
  • Missing or deficient security policies
  • Unencrypted devices containing ePHI
  • Lack of workforce security training
  • No unique user IDs — shared logins

OCR Audit Protocol Areas

  • Risk analysis documentation
  • Risk management plan
  • Sanction policy for workforce violations
  • Security awareness training records
  • Business associate agreements in place
  • Contingency plan tested within past year

OCR resolution agreements consistently require organizations to complete or update their risk analysis as the first corrective action.

By the Numbers

Healthcare Cybersecurity Reality

$10.9M

Average healthcare data breach cost in 2023 — highest of any industry for 13 consecutive years (IBM Cost of a Data Breach Report)

133M+

Healthcare records exposed, stolen, or impermissibly disclosed in 2023 alone (HHS OCR data)

79%

Of large healthcare breaches in 2023 were due to hacking or IT incidents — not lost/stolen devices

Module 3 Complete

What You've Covered