Learning from BetterHelp's $7M Fine: Prevention Strategies for Health Technology Companies

In the wake of BetterHelp's $7 million OCR settlement, healthcare marketers are scrambling to understand the high-stakes compliance landscape. Health technology companies face unique challenges when advertising on platforms like Google and Meta, where even seemingly anonymous data can constitute Protected Health Information (PHI). The reality is stark: tracking technologies essential for measuring marketing effectiveness often clash with HIPAA requirements, creating an impossible choice between compliance and growth.

The Hidden Compliance Risks for Health Technology Companies

Health technology companies operate in a regulatory minefield where standard marketing practices can trigger severe penalties. Here are three critical risks every health tech marketer should understand:

1. Invisible Data Transfer Through Client-Side Tracking

When health tech companies implement standard Google or Meta pixels, they inadvertently allow these third-party platforms to collect visitor data directly from users' browsers. This client-side tracking can expose sensitive information including IP addresses, browsing patterns, and health-related interests - all potentially qualifying as PHI under HIPAA when tied to a specific individual. The BetterHelp case demonstrated how seemingly innocuous tracking pixels became multi-million dollar liability.

2. Cross-Platform Data Sharing Without Proper Authorization

Health technology companies often leverage Meta's powerful lookalike audiences or Google's similar audience features. However, these tools operate by analyzing user behavior patterns that can include diagnostic interests, treatment research, or condition-specific page visits. Without proper consent mechanisms and data protection, this creates a direct pathway for unauthorized PHI disclosure.

3. Absence of Business Associate Agreements With Ad Platforms

According to HHS OCR guidance published in December 2022, covered entities and business associates must have BAAs with any third party that processes PHI - including tracking technology providers. Yet Google and Meta typically refuse to sign BAAs for their advertising platforms, creating a compliance gap for health tech companies using standard implementation methods.

The fundamental problem lies in how tracking data moves from healthcare websites to ad platforms. Client-side tracking sends raw visitor data directly to third parties before any PHI can be filtered, while server-side tracking allows for proper data sanitization before transmission - a critical distinction for HIPAA compliance.

HIPAA-Compliant Tracking Solutions for Health Technology Companies

Implementing truly compliant advertising tracking requires a multi-layered approach to data protection:

The PHI Stripping Process That Protects Your Business

Curve's solution offers health technology companies a dual protection system that works at both client and server levels:

1. Client-Side Protection: Instead of standard pixels that send raw data directly to Google or Meta, Curve's implementation captures conversion events but routes all data through privacy-first servers before any information reaches third parties.

2. Server-Side Sanitization: Before any data transmission, Curve's system automatically identifies and removes 18+ HIPAA identifiers, including IP addresses, device IDs, and any health condition information potentially qualifying as PHI.

3. Compliant Data Transmission: Only after thorough sanitization does the system send conversion data to ad platforms through server-side APIs (Meta Conversion API and Google Enhanced Conversions), maintaining marketing effectiveness without compliance risks.

Implementation for Health Technology Companies

For health tech platforms, implementation typically involves:

• Replacing standard Google/Meta pixels with Curve's privacy-first tracking code

• Configuring event mapping to track key conversions without PHI exposure

• Connecting patient management systems through secure API integrations that filter sensitive information

• Documentation of compliance measures through Curve's signed BAA and implementation verification

Unlike manual implementations that can take weeks and risk exposures, Curve's no-code solution can be deployed in hours, saving most health technology companies over 20 hours of technical implementation work.

HIPAA Compliance Optimization Strategies for Digital Advertising

Beyond implementing proper tracking, health technology companies can further strengthen their compliance posture with these actionable strategies:

1. Create Segmentation Without PHI

Rather than targeting based on specific health conditions (which creates HIPAA risk), structure campaigns around broader wellness interests, life stages, or general healthcare roles. For health technology platforms, consider targeting based on professional interests (e.g., "healthcare administration efficiency") rather than specific patient conditions.

2. Leverage First-Party Data Through Privacy-First Integration

Health tech companies can safely utilize customer data for advertising through privacy-preserving mechanisms. Curve's integration with Google Enhanced Conversions and Meta CAPI allows for matching customer information without exposing individual identities, improving campaign performance while maintaining a strong compliance posture.

3. Document Compliance At Every Stage

Maintain comprehensive documentation of your HIPAA compliant health technology marketing practices, including:

• Signed BAAs with all vendors handling tracking data

• PHI exposure risk assessments for each marketing channel

• Regular compliance audits of tracking implementations

• Training records for marketing staff on PHI protection practices

As experts analyzing the BetterHelp settlement noted, the presence or absence of documentation played a significant role in determining penalties. Companies that can demonstrate proactive compliance measures face reduced regulatory risk.

Protect Your Health Technology Business From Million-Dollar Fines

BetterHelp's $7 million settlement represents not just a historic penalty, but a clear warning to all health technology companies leveraging digital advertising. As OCR intensifies scrutiny of online tracking, implementing HIPAA compliant health technology marketing systems is no longer optional—it's essential business protection.

Curve's PHI-free tracking solution provides the critical infrastructure health tech companies need to confidently run high-performance advertising campaigns without risking massive penalties. With automatic PHI stripping, server-side implementation, and comprehensive BAA coverage, our platform eliminates the impossible choice between marketing effectiveness and regulatory compliance.

Ready to run compliant Google/Meta ads?
Book a HIPAA Strategy Session with Curve