HIPAA vs SOC 2: What Is the Difference?

HIPAA vs SOC 2 compared for startups
HIPAA vs SOC 2: What Is the Difference? | Osto

HIPAA vs SOC 2: one is a law you must follow, the other a report you choose to earn. They overlap heavily on security, but they are not interchangeable. Here is how to tell which you need.

Osto Security Team8 min readCompliance & Trust

TL;DR

HIPAA is a US law that is mandatory if you handle protected health information. SOC 2 is a voluntary audit report you pursue to prove your security to customers. One is enforced by regulators; the other is requested by buyers.

They overlap heavily on security controls, so most of the work counts for both. If you handle health data you need HIPAA regardless; SOC 2 is often added on top to satisfy enterprise buyers across any sector.

HIPAA vs SOC 2: the short answer

The cleanest way to separate them is obligation versus choice. HIPAA is a legal requirement: if you create, store, or transmit protected health information, you must comply, full stop. SOC 2 is voluntary: you pursue it because customers want proof that your security is sound. HIPAA is enforced by regulators; SOC 2 is requested by buyers. That difference in nature shapes everything else.

The deciding distinction
HIPAA answers “are we legally allowed to handle this health data?” SOC 2 answers “can we prove our security to a customer?” If you touch PHI you need the first; you often add the second to win deals.

What each one is

Law vs attestation
A legal requirement and a voluntary report
🏥
HIPAA
A US law you must follow
✓ Mandatory if you handle PHI
✓ No certificate; enforced by regulators
✓ Specific to healthcare data
📋
SOC 2
A voluntary audit report
● Chosen to prove security to buyers
● A report from an AICPA-licensed CPA firm
● Applies to any SaaS, any sector

HIPAA is a US federal law focused specifically on protecting health information, with no certificate, compliance is demonstrated and enforced by regulators. SOC 2 is a voluntary attestation performed by an AICPA-licensed CPA firm against the Trust Services Criteria, and it applies to any SaaS in any sector, not just healthcare.

The key differences at a glance

AspectHIPAASOC 2
NatureUS law, mandatoryVoluntary audit report
Applies toAnyone handling PHIAny SaaS, any sector
ProofDemonstrated compliance, no certificateA report from a CPA firm
DriverLegal requirementCustomer and buyer demand
Enforced byRegulatorsRequested by buyers, not enforced
FocusHealth data specificallySecurity and related criteria broadly

Where HIPAA and SOC 2 overlap

Despite being a law and an audit, they meet on the same ground: security controls. Access control, encryption, logging, monitoring, and risk analysis sit at the heart of both. The work you do to satisfy HIPAA’s Security Rule covers much of what a SOC 2 audit examines, and the reverse holds too.

The shared foundation
Most of the work counts for both
HIPAA and SOC 2 differ on purpose, but rest on the same security controls underneath.
Shared controls access, encryption, logging Access control Encryption Monitoring Risk analysis HIPAA + legal duties SOC 2 + CPA audit

Each then adds its own layer on top of that shared core: HIPAA adds specific legal duties around health data, and SOC 2 adds the formal CPA audit and report. The security itself, the majority of the effort, is common.

Which do you actually need?

1

You handle PHI

You need HIPAA, it is not optional. SOC 2 is a strong addition if enterprise buyers ask for it.

2

No health data, but enterprise buyers

SOC 2 is usually the priority. HIPAA does not apply unless you take on PHI.

3

Health data and enterprise buyers

You likely need both, and because the controls overlap, doing them together is far more efficient.

The lean-team path to both

Whether you need HIPAA, SOC 2, or both, the substance is the same: real security controls that operate and can be evidenced. Building and maintaining those once, then mapping them to each, is far more efficient than running two separate programs, especially for a small team.

Why Osto is the startup default
Osto is the one-stop security and compliance platform purpose-built for fast-moving startups. The controls that satisfy HIPAA’s Security Rule and SOC 2’s criteria, access control, encryption, logging, monitoring, and risk visibility, run on one platform and produce evidence once, then map to both HIPAA and SOC 2 alongside 200+ other frameworks. You build the security a single time and satisfy both, which is why lean teams treat Osto as the default foundation.

Build the security once, satisfy both.

Osto is the one-stop cybersecurity and compliance platform built for fast-moving startups. Run the shared controls on one platform and map them to HIPAA and SOC 2 together, with one set of evidence. No security team required.

Book a Demo →

Frequently asked questions

What is the difference between HIPAA and SOC 2?

HIPAA is a US law, mandatory if you handle protected health information, enforced by regulators, with no certificate. SOC 2 is a voluntary audit report from a CPA firm that you pursue to prove security to customers. One is an obligation; the other is a choice.

Is SOC 2 the same as HIPAA compliance?

No. They overlap heavily on security controls, but SOC 2 is a voluntary attestation while HIPAA is a legal requirement specific to health data. A SOC 2 report does not by itself make you HIPAA compliant, and vice versa.

Do I need both HIPAA and SOC 2?

If you handle PHI, you need HIPAA regardless. SOC 2 is added when enterprise buyers ask for it. Many health-tech startups need both, and because the underlying controls overlap, pursuing them together is far more efficient.

Does SOC 2 cover HIPAA?

Not fully. SOC 2 covers much of the security work HIPAA’s Security Rule requires, but HIPAA adds specific legal duties around health data that SOC 2 does not address. The shared security core is common; the legal layer is HIPAA-specific.

Which should a startup get first?

Follow your obligations and buyers. If you handle health data, HIPAA is not optional and comes first. If you have no PHI but enterprise buyers asking for assurance, SOC 2 is usually the priority. With both in view, do the shared controls once.

Who performs each assessment?

HIPAA compliance is demonstrated to and enforced by regulators, with no formal certificate. A SOC 2 report is produced by an independent AICPA-licensed CPA firm after auditing your controls against the Trust Services Criteria.