HIPAA eCommerce

Avoid These 3 HIPAA eCommerce Mistakes

Updated  |  5 min read
Key Takeaways
  • Leaving PHI unencrypted increases the likelihood of a data breach, exposing sensitive patient information. Encrypt all PHI, both at rest and in transit, using strong protocols like AES-256 to ensure security and compliance.
  • Without a BAA, you could be held responsible for breaches caused by third-party vendors. Ensure every vendor handling PHI signs a comprehensive BAA outlining their compliance obligations.
  • Combining public-facing website features with PHI systems creates vulnerabilities. Keep these functions separate to reduce the risk of accidental exposure and improve security.

Are you unknowingly making costly HIPAA mistakes? Ensuring compliance with HIPAA regulations is crucial for any eCommerce business handling protected health information (PHI), especially if you are a covered entity. Failing to follow proper security protocols can lead to significant financial penalties, reputational damage, and loss of customer trust. Here are three critical mistakes you must avoid to keep your business secure and compliant.

Protecting HIPAA information.

Understanding HIPAA Compliance

HIPAA compliance refers to the adherence to the standards and regulations set forth by the Health Insurance Portability and Accountability Act (HIPAA) of 1996. This federal law is designed to protect the privacy and security of protected health information (PHI) and electronic health records (EHRs) within the healthcare industry. For healthcare providers, healthcare organizations, and covered entities, ensuring HIPAA compliance is essential to maintain the confidentiality, integrity, and availability of patient data.

Achieving HIPAA compliance involves implementing a combination of administrative, technical, and physical safeguards to protect PHI and EHRs from unauthorized access, use, or disclosure. This includes developing and enforcing comprehensive policies and procedures, training staff on HIPAA regulations, and conducting regular risk assessments and audits. Additionally, healthcare providers must obtain patient consent for the use and disclosure of PHI and provide patients with access to their medical records. By adhering to these requirements, covered entities can ensure they are protecting patient data and avoiding costly HIPAA violations.

Protecting HIPAA inforation with software.

Mistake 1: Storing Unencrypted PHI in Non-Secure Databases

Leaving PHI unencrypted significantly increases the risk of a data breach. Cybercriminals actively target unprotected data, and without encryption, sensitive patient information becomes vulnerable to unauthorized access. The U.S. Department of Health and Human Services (HHS) oversees the enforcement of HIPAA regulations and investigates violations. If your database is not secure, your business could face legal consequences and substantial fines for non-compliance.

Why Encryption Matters

Encryption ensures that even if an attacker gains access to your database, the data remains unreadable without the proper decryption key. Implementing strong encryption methods, such as AES-256, adds an essential layer of security. This protocol is widely recognized as a gold standard for encrypting sensitive information. The HIPAA Security Rule mandates the implementation of encryption to protect electronic health records and other sensitive patient data.

Best Practices for Securing PHI and Ensuring HIPAA Compliance

  1. Encrypt Data at Rest and in Transit: PHI should be encrypted when stored in databases and when being transmitted over networks. Secure Socket Layer (SSL) and Transport Layer Security (TLS) protocols help protect data in transit.
  2. Use Secure Storage Solutions: Store encrypted PHI in a HIPAA-compliant cloud storage provider or a dedicated secure server.
  3. Implement Access Controls: Limit database access to authorized personnel only. Use multi-factor authentication (MFA) to ensure extra protection.
  4. Regularly Audit Security Measures: Conduct periodic security assessments and penetration testing to identify vulnerabilities and reinforce security.

By enforcing strict encryption policies and using secure storage solutions, your business can minimize the risk of data breaches and maintain compliance with HIPAA regulations. Adhering to the HIPAA Privacy Rule ensures that patient data is handled according to established procedures, minimizing the risk of privacy violations.

Mistake 2: Failing to Execute a Proper Business Associate Agreement

A Business Associate Agreement (BAA) is a legally binding document that outlines the responsibilities of third-party vendors handling PHI on your behalf. The HIPAA rule requires that any organization working with business associates must establish a formal agreement to ensure compliance. Without a proper BAA, your business could be held liable for any security breaches caused by these vendors.

The Importance of a BAA

HIPAA regulations require that any organization working with business associates—such as cloud storage providers, IT support teams, and payment processors—must establish a formal agreement. This agreement defines the vendor’s responsibilities in maintaining HIPAA compliance and ensuring the security of PHI. Adhering to HIPAA rules is essential to avoid costly mistakes and ensure the protection of sensitive information.

What Should Be Included in a BAA?

  1. Data Protection Measures: The agreement should specify how the vendor will encrypt, store, and process PHI securely.
  2. Breach Notification Procedures: Vendors must agree to report any security incidents within a specified timeframe to ensure prompt action.
  3. Liability Terms: Clearly define each party’s responsibilities in the event of a breach, including legal and financial liabilities.
  4. Access and Audit Rights: The agreement should allow for periodic audits to verify compliance with HIPAA requirements. Failure to include these elements in a BAA can result in a HIPAA violation and significant penalties.

Steps to Ensure Compliance

  • Review All Vendor Agreements: Ensure every third-party service handling PHI has signed a BAA.
  • Work Only with HIPAA-Compliant Vendors: Choose partners that have proven security measures in place.
  • Monitor Vendor Compliance: Conduct regular audits and security assessments to ensure vendors follow best practices.

A comprehensive BAA is essential for protecting your business from liability and ensuring that all third-party vendors comply with HIPAA regulations. The U.S. Department of Health and Human Services (HHS) oversees the enforcement of HIPAA regulations and mandates actions to mitigate damages from breaches.

Mistake 3: Mixing Public Website Functions with Protected Health Information Handling

Integrating public website features with PHI systems creates security vulnerabilities that can lead to data breaches. The HIPAA Security Rule mandates the implementation of strong security standards to protect patient data from unauthorized access. Contact forms, chatbots, and other interactive website elements can unintentionally expose sensitive patient data if not properly secured.

Risks of Combining Public and Private Functions

  • Data Exposure: Public-facing elements may not have the same security measures as private PHI systems, increasing the risk of accidental exposure.
  • Increased Attack Surface: The more functions your website performs, the greater the number of potential security weaknesses.
  • Compliance Violations: Failure to keep PHI separate from public-facing website elements may result in HIPAA violations and penalties.

Best Practices for Keeping PHI Secure Under the HIPAA Security Rule

  1. Use Separate Systems: Ensure that public-facing website functions are completely separate from PHI databases.
  2. Implement Secure Authentication: Require users to log in through a secure portal before accessing any PHI-related information.
  3. Use HIPAA-Compliant Web Forms: If your site collects sensitive data through forms, ensure they are properly encrypted and stored securely.
  4. Regular Security Audits: Conduct frequent vulnerability assessments to identify and fix security gaps. Adhering to HIPAA rules is essential to avoid costly mistakes and ensure the protection of sensitive information.

Secure Data Handling in eCommerce

If your eCommerce store processes medical transactions or provides healthcare-related services, take extra precautions to keep PHI separate from standard website operations. Use dedicated, encrypted servers for PHI storage, and ensure all transactions follow HIPAA’s strict security guidelines. The HIPAA Security Rule mandates the implementation of strong security standards to protect patient data from unauthorized access.

HIPPA-covered ePHI.

Staff Training and Awareness

Staff training and awareness are critical components of maintaining HIPAA compliance. Healthcare providers and organizations must ensure that their staff understands the importance of protecting patient data and the severe consequences of HIPAA violations. Effective training should cover the basics of HIPAA regulations, including the definition of PHI, the significance of maintaining confidentiality, and the proper procedures for handling and disclosing PHI. By educating staff on these key areas, healthcare organizations can significantly reduce the risk of data breaches and ensure compliance with HIPAA regulations.

Strategies for Effective Training

To ensure that staff training is both effective and engaging, healthcare providers and organizations can implement the following strategies:

  • Provide Regular Training Sessions: Schedule ongoing training sessions and updates to keep staff informed about the latest HIPAA regulations and policies.
  • Use Interactive Training Methods: Incorporate videos, quizzes, and other interactive elements to make training sessions more engaging and memorable.
  • Encourage Open Communication: Create an environment where staff feel comfortable asking questions and reporting any concerns or incidents related to HIPAA compliance.
  • Offer Access to HIPAA Resources: Provide staff with easy access to HIPAA resources and materials to reinforce their understanding of compliance requirements.
  • Conduct Regular Audits and Assessments: Perform periodic audits and assessments to ensure that staff are adhering to HIPAA regulations and to identify any areas that may need additional training or improvement.

By implementing these strategies, healthcare providers and organizations can ensure that their staff are well-informed and vigilant in protecting patient data, thereby maintaining HIPAA compliance and avoiding potential violations.

Protect All Electronic Health Records

Avoiding these three HIPAA eCommerce mistakes is crucial for protecting your business and maintaining compliance. Encrypt all PHI, establish solid agreements with vendors, and separate public website functions from PHI handling. Implementing strong security measures will safeguard sensitive patient information, reduce legal risks, and build trust with customers.

The U.S. Department of Health and Human Services (HHS) oversees the enforcement of HIPAA regulations and investigates violations. Regularly reviewing your security policies, staying updated on HIPAA regulations, and working with compliant vendors will help ensure your business remains secure. Taking these proactive steps will protect both your customers and your reputation in the healthcare eCommerce space.

Protect PHI in Your Care

It's vital to keep patient information safe, whether it's medical or financial. Clarity can make that happen, so get in touch for a demo.

FAQ

 

PHI, or Protected Health Information, encompasses sensitive health-related data that can be linked to an individual. Encrypting PHI is essential to safeguard this information from unauthorized access and maintain compliance with HIPAA regulations.

 

A Business Associate Agreement (BAA) must include the scope of PHI usage, security measures, breach notification procedures, and termination clauses, clearly delineating each party's responsibilities and ensuring compliance with HIPAA regulations. Including these elements is essential for protecting sensitive health information.

 

To ensure your eCommerce site is HIPAA compliant, implement strong encryption, conduct regular security audits, and separate public functions from PHI systems. Additionally, ensure comprehensive BAAs with business associates and provide HIPAA training for your team.

 

Penalties for HIPAA violations in 2025 include substantial financial fines, legal repercussions, and potential damage to reputation. It is crucial to adhere to compliance regulations to avoid these severe consequences.

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Stephen Beer is a Content Writer at Clarity Ventures and has written about various tech industries for nearly a decade. He is determined to demystify HIPAA, integration, enterpise SEO features, and eCommerce with easy-to-read, easy-to-understand articles to help businesses make the best decisions.