Regulatory Alert — HIPAA Security Rule NPRM

HIPAA Security Rule 2026:
The Biggest Update
in 20 Years

HHS published a Notice of Proposed Rulemaking on January 6, 2025 (90 Fed. Reg. 898) proposing sweeping changes to the HIPAA Security Rule — mandatory MFA, mandatory encryption, 72-hour breach notification, and more. The final rule is expected in 2026. Is your organization ready?

90 Fed. Reg. 898 Published Jan 6, 2025 Comment period closed Mar 2025 Final rule expected 2026 [UNVERIFIED]

PROPOSED RULE — NOT YET FINAL. These are proposed changes from the NPRM (90 Fed. Reg. 898, Jan 6, 2025). The final rule has not been published as of April 2026. Organizations should begin preparation now as the direction of travel is clear and the comment period has closed. Source: Federal Register, 90 Fed. Reg. 898 (Jan. 6, 2025).

9 Major Changes in the Proposed Rule

The 2003 HIPAA Security Rule relied heavily on "addressable" specifications — organizations could document equivalent alternatives. The NPRM closes that door on the most critical controls. 90 Fed. Reg. 898 ↗

01
Multi-Factor Authentication Now Required
Was: Addressable → Proposed: Required

MFA would be mandatory for all access to ePHI — clinical systems, EHRs, cloud storage, email. Under the current 2003 rule, MFA is an "addressable" specification: organizations can document a reasonable alternative. The NPRM eliminates that flexibility entirely for authentication.

Source: 90 Fed. Reg. 898 (Jan. 6, 2025)
02
Encryption at Rest & In Transit Now Required
Was: Addressable → Proposed: Required

Encryption of ePHI — both at rest and in transit — would move from "addressable" to "required." Organizations that rely on physical security or network perimeter controls as a documented alternative to encryption would need to implement cryptographic encryption.

Source: 90 Fed. Reg. 898 (Jan. 6, 2025)
03
72-Hour HHS Notification
Was: 60 days → Proposed: 72 hours

Covered entities would be required to notify HHS within 72 hours of discovering a breach affecting ePHI. Current requirements allow "without unreasonable delay, no later than 60 days." This is a dramatic tightening requiring pre-built incident response runbooks and clear internal escalation paths.

Source: 90 Fed. Reg. 898 (Jan. 6, 2025)
04
Annual Risk Assessments
Was: Periodic → Proposed: Explicitly Annual

The NPRM proposes making risk analysis explicitly annual rather than "periodic." Organizations that conduct risk assessments every 2–3 years would need to increase cadence and build repeatable, documented processes. The assessment must be documented and address all potential risks to ePHI.

Source: 90 Fed. Reg. 898 (Jan. 6, 2025)
05
Network Segmentation
Proposed: Required for ePHI systems

ePHI systems would need to be segmented from general-purpose networks. This affects organizations that run clinical applications on shared corporate networks without isolation. May require VLAN restructuring, micro-segmentation, or dedicated ePHI network zones.

[UNVERIFIED] — verify against final rule text
06
Vulnerability Scanning & Pen Testing
Proposed: Mandatory cadence

Regular vulnerability scanning and penetration testing would be mandated on a defined schedule, not left to organizational discretion. Organizations without existing vulnerability management programs would need to build or buy scanning capabilities and a remediation tracking process.

[UNVERIFIED] — verify against final rule text
07
Technology Asset Inventory
Was: Implied → Proposed: Explicit

A comprehensive technology asset inventory and network map would be required, explicitly documenting all systems that create, receive, maintain, or transmit ePHI. This is a prerequisite for the required risk analysis and is often absent in smaller covered entities and critical access hospitals.

Source: 90 Fed. Reg. 898 (Jan. 6, 2025)
08
Business Associate Oversight
Proposed: Enhanced verification requirements

Covered entities would face enhanced requirements to verify business associates' security controls — not just execute BAAs, but actively confirm implementation. This may require annual attestations, third-party assessment reviews, or evidence collection from BAs handling ePHI.

Source: 90 Fed. Reg. 898 (Jan. 6, 2025)
09
Compliance Deadlines
180 days / 1 year after final rule

The NPRM proposed 180 days for most provisions after the final rule's effective date, with a one-year window for certain provisions. For organizations with complex EHR environments, legacy infrastructure, or limited IT staff, 180 days is an aggressive timeline to implement MFA and encryption org-wide.

[UNVERIFIED] — subject to final rule text

"Am I Ready?" Checklist

Rate your current status against each proposed requirement. Your readiness score updates in real time — use it to prioritize your gap remediation effort.

Your current readiness

Toggle each item below — results not transmitted

0% Ready
Do you require MFA for all ePHI access — EHR, email, cloud storage, remote access? Proposed: §164.312 — MFA required (not addressable)
Is ePHI encrypted at rest AND in transit across all systems and business associates? Proposed: §164.312 — Encryption required (not addressable)
Do you have a documented incident response plan with a 72-hour HHS notification procedure? Proposed: Breach notification tightened from 60 days to 72 hours
Have you conducted a formal, documented risk assessment in the last 12 months? Proposed: Annual cadence explicitly required
Do you maintain a complete, current technology asset inventory and network map for all ePHI systems? Proposed: Technology asset inventory and network mapping required
Is your ePHI network segmented from general corporate or guest networks? Proposed: Network segmentation for ePHI systems [UNVERIFIED]
Do you perform regular automated vulnerability scans of ePHI systems and track remediation? Proposed: Regular vuln scanning and pen testing mandated [UNVERIFIED]
Do you actively verify your business associates' security controls — not just execute BAAs? Proposed: Enhanced BA security verification required
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HIPAA Security Rule 2026 Timeline

From NPRM publication through expected compliance deadlines — where we are and what comes next.

January 6, 2025

NPRM Published — 90 Fed. Reg. 898

HHS Office for Civil Rights published the Notice of Proposed Rulemaking proposing the most significant update to the HIPAA Security Rule since 2003. Proposed changes include mandatory MFA, encryption, asset inventory, and a tightened breach notification window.

federalregister.gov ↗
March 2025

Public Comment Period Closed

The 60-day public comment period closed. HHS received comments from covered entities, business associates, healthcare associations, and technology vendors. HHS is now analyzing comments to finalize the rule.

90-day review period underway
April 2026 — Now

Comment Analysis & Final Rule Drafting

HHS is reviewing comments and drafting the final rule. No official publication date has been announced. Healthcare organizations should treat this window as preparation time — gap assessments, MFA rollouts, and encryption projects take months to execute. [UNVERIFIED — status as of April 2026]

2026 — Expected [UNVERIFIED]

Final Rule Published

HHS has signaled intent to finalize the rule in 2026, but no official date has been set. The final rule text may differ from the NPRM — particularly on timelines and specific technical requirements.

180 Days After Final Rule [UNVERIFIED]

Most Provisions Effective

The NPRM proposed a 180-day compliance window for most provisions after the final rule's effective date. MFA, encryption, asset inventory, and annual risk assessments would likely fall under this window.

1 Year After Final Rule [UNVERIFIED]

Extended Provisions Effective

Certain provisions may receive a one-year implementation window, potentially including network segmentation and enhanced business associate verification requirements that require more complex organizational change.

The Cost of Non-Compliance

HIPAA enforcement has teeth. Between OCR penalties, breach remediation costs, and reputational damage, non-compliance is far more expensive than preparation.

Avg. Healthcare Breach Cost
$9.77M
Healthcare has the highest average breach cost of any industry, nearly $4M above the cross-industry average.
IBM Cost of a Data Breach 2024 [UNVERIFIED — verify current edition]
OCR Penalty — Tier 1 (per violation)
$137–$68,928
Tier 1: No knowledge. Tier 4 (willful neglect, uncorrected): $68,928–$2.07M per violation. Each impacted record can constitute a separate violation.
HHS OCR Civil Monetary Penalties [UNVERIFIED — verify current CMP amounts]
Max Annual Penalty (per provision)
$2.13M
OCR can assess up to $2.13M per violation category per calendar year. Multiple simultaneous failures multiply exposure significantly.
HHS OCR Enforcement [UNVERIFIED — verify current cap]

Calculate your organization's breach risk exposure

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What to Do Now — Before the Final Rule

The comment period is closed and the rule's direction is clear. Organizations that start today have 6–18 months of preparation runway. Those that wait for the final rule risk a 180-day sprint they can't complete.

1

Conduct a Formal Gap Assessment Against the NPRM

Map your current technical and administrative safeguards against each proposed requirement. Document what is in place, what is partial, and what is absent. This baseline drives your remediation budget and timeline. Use the proposed rule text (90 Fed. Reg. 898) as the assessment framework — don't wait for the final rule.

2

Budget for MFA Deployment If Not Already in Place

Enterprise MFA rollouts — especially in clinical environments with legacy systems, shared workstations, and 24/7 operations — take months of planning, testing, and change management. Identify systems outside your current MFA scope now: EHR integrations, lab systems, medical devices, and third-party portals.

3

Audit Encryption Across All ePHI Stores

Inventory all locations where ePHI exists: production databases, backups, archives, data lakes, mobile devices, laptops, and business associate systems. Verify encryption-at-rest and TLS-in-transit for each. Common gaps: legacy database servers without transparent data encryption, unencrypted backup tapes, and unencrypted sFTP endpoints used for HL7 feeds.

4

Update Your Incident Response Plan for 72-Hour Notification

Rewrite your breach response runbook with a 72-hour HHS notification clock. This requires: defined discovery criteria, clear escalation paths to legal and compliance, a breach assessment workflow that can run over a weekend, and pre-drafted HHS notification templates. Test your plan with a tabletop exercise before the final rule is published.

5

Build or Update Your Technology Asset Inventory

A complete, current inventory of systems that create, receive, maintain, or transmit ePHI is both an explicit proposed requirement and a prerequisite for your risk analysis, network segmentation design, and vulnerability scanning scope. If you don't have an accurate inventory today, this is the highest-leverage first step — every other control depends on knowing what you're protecting.

HIPAA 2026 Updates — Your Questions Answered

No — the rule is still in proposed form as of April 2026. The NPRM (90 Fed. Reg. 898) was published January 6, 2025 and the comment period closed in March 2025. The final rule has not been published. You are not yet legally required to comply with the proposed changes. However, the regulatory direction is clear, the comment period has closed, and implementation timelines are tight. Beginning preparation now is strongly advisable.
Under the 2003 HIPAA Security Rule, implementation specifications are either "required" (must be implemented) or "addressable" (must be implemented OR the organization must document why an equivalent alternative is reasonable). MFA and encryption are currently "addressable" — meaning organizations can legitimately choose not to implement them if they document a reasonable alternative. The NPRM proposes elevating both to "required," eliminating the documented-alternative path for these specific controls. Source: 90 Fed. Reg. 898 (Jan. 6, 2025).
Yes. Business associates (BAs) are directly subject to the HIPAA Security Rule and the proposed changes would apply to them as well. In addition, covered entities would face enhanced requirements to verify their BAs' security controls. If you are a technology vendor, clearinghouse, billing company, or any other entity that handles ePHI on behalf of a covered entity, these rules apply to you.
The proposed 72-hour window to notify HHS mirrors the 72-hour supervisory authority notification window under GDPR Article 33. This is a well-tested standard in European healthcare — US healthcare organizations can look to GDPR-compliant incident response frameworks as a model. Unlike GDPR, HIPAA breach notification also requires notification to affected individuals (within 60 days, unchanged in the NPRM) and, for breaches affecting 500+ individuals, to prominent media outlets in the affected state.
The HIPAA Security Rule was published in 2003 (68 Fed. Reg. 8334, Feb. 20, 2003) and became effective April 21, 2003 with a compliance date of April 20, 2005. The HITECH Act of 2009 strengthened enforcement and extended the rule to business associates, and the Omnibus Rule of 2013 implemented HITECH provisions. But the core technical safeguard specifications have not been substantively updated since 2003 — over 20 years of technology change with the same regulatory framework. Source: 68 Fed. Reg. 8334 (Feb. 20, 2003).
As of April 2026, the final rule has not been published and HHS has not announced an official publication date. The regulatory process — comment analysis, inter-agency review, OMB OIRA review — typically takes 6–18 months after comment period close. HHS has signaled intent to finalize in 2026, but this is unconfirmed. [UNVERIFIED — no official HHS publication date as of April 2026] Sign up below to be notified when the final rule is published.

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