HIPAA guide
The HIPAA Security Rule update: what the January 2025 proposal would change, and where it stands
HHS proposed a stronger HIPAA Security Rule in January 2025, and it remains a proposal: the current rule is still in force. What the proposal would change, what it would mean for business associates, and how to prepare without treating it as law.
Key points
- The HIPAA Security Rule update is still a proposal. HHS published the proposed rule on 6 January 2025, comments closed on 7 March 2025, and no final rule had appeared in the Federal Register when this guide was checked on 29 September 2026.
- The Security Rule in force today still applies in full, including the distinction between required and addressable implementation specifications.
- The proposal would make almost every specification required and add written documentation, an asset inventory and network map, encryption, multi-factor authentication, scheduled scanning and testing, 72-hour restoration and an annual compliance audit.
- The sensible response is to comply with the current rule and design towards the proposal, so that a final rule, if one is published, means adjusting a working programme rather than rebuilding it.
Where the HIPAA Security Rule update stands
The proposed HIPAA Security Rule update has not become law. The Department of Health and Human Services (HHS) announced a notice of proposed rulemaking on 27 December 2024 and published it in the Federal Register on 6 January 2025 as "HIPAA Security Rule To Strengthen the Cybersecurity of Electronic Protected Health Information" (90 FR 898, RIN 0945-AA22, docket HHS-OCR-2024-0020). The public comment period ended on 7 March 2025.
HHS says on its own page for the proposal that the current Security Rule remains in effect while the rulemaking continues. A search of the Federal Register on 29 September 2026 found no final rule, no withdrawal and no extension of the comment period for this rule. The federal regulatory agenda has moved its expectation back: the Spring 2025 edition placed the rule at the final rule stage, while the latest edition lists it among long-term actions.
| Date | Event | What it means for you |
|---|---|---|
| 27 December 2024 | HHS announces the proposed rule and a fact sheet | The direction of travel becomes public |
| 6 January 2025 | Proposed rule published in the Federal Register | The text you can plan against, not a text you must meet |
| 7 March 2025 | Comment period closes | No further public input on this proposal |
| Spring 2025 agenda | Listed at final rule stage, final action projected for May 2026 | A projection that did not happen |
| Latest agenda (labelled 2026) | Listed as a long-term action, final action projected for July 2027 | A projection, not a commitment; no compliance date exists yet |
Agenda dates are the Department's forecasts. The only event that creates new obligations is a final rule published in the Federal Register, and that rule would set its own effective and compliance dates.
What the proposal would change, against the current rule
The proposal keeps the Security Rule's three families of safeguards, administrative, physical and technical, but removes much of the flexibility the 2003 rule gave to regulated entities. The HHS fact sheet summarises the main changes; the table sets each against what the rule requires today. Several proposals carry limited exceptions, which the final text would define.
| Area | Current rule (in force) | Proposed rule (not in force) |
|---|---|---|
| Implementation specifications | Required specifications must be implemented; addressable ones are assessed, and an alternative is documented where one is not reasonable and appropriate | The distinction removed; all specifications required, with limited exceptions |
| Documentation | Policies and procedures kept in written form and retained six years | Written documentation of all policies, procedures, plans and analyses |
| Asset inventory and network map | Not a named specification | A technology asset inventory and a network map, updated at least every 12 months |
| Risk analysis | Required: an accurate and thorough assessment of risks to ePHI | More specific written content: assets, threats, vulnerabilities and a risk level for each |
| Encryption | Addressable, at rest and in transmission | Required at rest and in transit |
| Authentication | Person or entity authentication, with no method specified | Multi-factor authentication required |
| Scanning and testing | Periodic evaluation; no scanning or penetration testing interval named | Vulnerability scanning at least every six months, penetration testing at least every 12 months |
| Restoration | Data backup, disaster recovery and emergency mode operation plans required | Written procedures to restore systems and data within 72 hours |
| Access changes | Workforce security procedures, addressable | Notice within 24 hours when a workforce member's access changes or ends |
| Compliance audit | Periodic technical and non-technical evaluation | A compliance audit at least every 12 months, and security measures reviewed and tested at least every 12 months |
The fact sheet also lists network segmentation, anti-malware protection, separate controls for backup and recovery, and obligations for sponsors of group health plans.
What it would mean for business associates
Service providers feel the proposal twice: once as regulated entities in their own right, and again through their customers. Two proposals are aimed squarely at the supply chain. Business associates' safeguards would be verified at least every 12 months through a written analysis by a subject-matter expert, and a business associate would tell the covered entity within 24 hours of activating its contingency plan.
For a contact centre, billing company or cloud platform serving US healthcare clients, that points to a yearly evidence request that is more formal than today's due diligence questionnaire, and to incident and continuity procedures that start a notification clock. It also means the flow-down clauses in your own agreements with subcontractors may need revisiting. Business associate agreements: what to sign and what to issue covers the agreements themselves.
How to prepare without treating a proposal as law
Preparing does not mean implementing every proposed item tomorrow. It means building a programme that meets the rule in force, records accurately where it stands against the proposal, and closes the gaps that make sense now.
Meet the current rule first
The risk analysis remains the foundation under both texts. If yours is missing, generic or out of date, fix that before anything else; The Security Rule risk analysis: how to conduct one sets out the method.
Document every addressable decision
Where you decided today that encryption, automatic logoff or another addressable specification was not reasonable and appropriate, the record of that reasoning and the alternative you chose is a current requirement. It is also the list of items most exposed if the distinction disappears.
Add the proposal to the gap analysis
Record each proposed item as met, partly met or not met, with an owner and an estimate of effort. That turns an uncertain rulemaking into a costed plan, and it lets you answer a customer's question about readiness with evidence instead of reassurance.
Prioritise what counts twice
When OCR enforces the Security Rule, the law requires it to consider whether recognised security practices were in place for the previous 12 months. Many proposed items, such as multi-factor authentication, encryption and tested restoration, are practices that strengthen the programme now as well as later. NIST SP 800-66 Revision 2 (February 2024) maps the current Security Rule to NIST cybersecurity controls and is a useful reference while you work.
What goes wrong with the proposed update
- Claiming compliance with a rule that does not exist. Telling a customer you meet "the new HIPAA Security Rule" misstates the law; say you meet the current rule and show where you stand against the proposal.
- Waiting for the final rule. The current rule is enforced today, and the gaps it exposes are usually the same gaps the proposal targets.
- Treating the proposed text as final. A final rule, if published, may differ from the proposal; plan against it, but keep the plan easy to revise.
- Rewriting every policy. Most programmes need targeted changes to the risk analysis, access, encryption, testing and continuity documents, not a new document set; HIPAA documentation: what you need and what you do not explains the minimum.
- Accepting a "certificate" for the new rule. HHS recognises no private HIPAA certification under the current rule, and a proposal cannot be certified against either.
How Sterling prepares you for the proposed update
A programme built for today's rule and ready for the next one
Our expert and experienced consultants build your HIPAA compliance programme against the Security Rule in force, then add every proposed item to the gap analysis so you can see what a final rule would ask of you and what it would cost in effort. The risk analysis, addressable decisions and evidence sit in Effivity, included with the engagement at no additional cost, and Sustain™ keeps the programme under review as the rulemaking moves. Sterling prepares the programme and the evidence; compliance is assessed by regulators and your customers' auditors.
Book a free discovery callThe proposed Security Rule update: questions buyers ask
When will the new HIPAA Security Rule take effect?
No effective date exists, because no final rule has been published. The latest federal regulatory agenda lists the final action as a long-term item with a projected date of July 2027, and any final rule would set its own compliance period.
Is encryption mandatory under HIPAA today?
No, encryption of ePHI is an addressable specification under the current Security Rule. You must assess it and, if you do not encrypt, document why and what equivalent measure you use; the proposal would make encryption required, with limited exceptions.
Does HIPAA require penetration testing?
The current Security Rule does not name penetration testing; it requires a risk analysis and a periodic evaluation. The proposal would add penetration testing at least every 12 months and vulnerability scanning at least every six months.
Does the proposed rule apply to business associates outside the United States?
Yes, if it becomes final it would apply to business associates as the current rule does, and a business associate is defined by what it does with PHI, not where it is located. The proposal also adds an annual verification of business associates' safeguards and a 24-hour notice when a contingency plan is activated.
Can we still comment on the proposed Security Rule?
No, the comment period closed on 7 March 2025. The next public step would be a final rule, or a withdrawal, published in the Federal Register.
Should we delay our HIPAA programme until the final rule is published?
No, the current Security Rule is in force and enforced now. Building to it while tracking the proposal in your gap analysis means a final rule becomes an adjustment rather than a second project.
More HIPAA guides
Every guide in the HIPAA series is written for one question and links back to the hub for the whole picture.
- Business associate agreements: what to sign and what to issue
- HIPAA compliance process, step by step
- HIPAA compliance cost: what moves the price
- HIPAA documentation: what you need and what you do not
- Effivity for HIPAA: the guide
- HIPAA vs SOC 2, HITRUST and ISO/IEC 27001
- HIPAA requirements explained, rule by rule
- The Security Rule risk analysis: how to conduct one
- HIPAA security risk analysis
- The proposed Security Rule update, explained
Keep exploring
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Watch a video on how to comply with HIPAA here.
Watch a video on HIPAA requirements here.
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