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Is Microsoft 365 HIPAA compliant? BAA, plans and safe use

Is Microsoft 365 HIPAA compliant? What Microsoft 365 says about signing a BAA, which plans qualify, safe and unsafe uses for a practice, and safer options.

By Medfy Editorial TeamUpdated Facts verified 5 min read

Last verified: October 2026, against Microsoft Learn's HIPAA compliance page, SharePoint admin documentation and Microsoft's consumer Services Agreement. General information, not legal advice — confirm with your compliance officer or attorney.

Is SharePoint HIPAA compliant? SharePoint Online, OneDrive for Business, Exchange Online and Teams are all covered by Microsoft's business associate agreement (BAA) on commercial Microsoft 365 subscriptions, and that BAA applies by default. What Microsoft can't do is set your sharing and email rules, and the defaults are built for collaboration, not for patient files.

Is Microsoft 365 HIPAA compliant? Microsoft's own answer

Short answer (verified October 2026): Microsoft's HIPAA compliance page (opens in a new tab) says its HIPAA BAA "is available through the Microsoft Online Services Data Protection Addendum by default to all customers who are covered entities or business associates under HIPAA." For commercial Office 365, in-scope services include Exchange Online, Forms, Microsoft Teams, OneDrive for Business, SharePoint Online, Microsoft Copilot and Copilot Chat. Asked whether the BAA ensures compliance, Microsoft answers: "No... using Microsoft services doesn't on its own achieve HIPAA compliance."

Two more lines from the same page matter. Microsoft offers BAAs for "Microsoft enterprise products and services," and it "can't use a customer's Business Associate Agreement," so you sign on to Microsoft's terms, not yours.

For context: "is sharepoint hipaa compliant" gets about 210 searches a month in the US, at a CPC of $7.27 (Google Ads Keyword Planner data via DataForSEO, US, 12-month average to Sep 2026).

What HIPAA requires before patient information goes in

Microsoft's role is the "maintain" in HIPAA's "create, receive, maintain, or transmit": it holds your mail and files (45 CFR 164.502(e) (opens in a new tab)). That requires "satisfactory assurance," "documented through a written contract" whose required terms, from safeguards to breach reporting, are listed in 45 CFR 164.504(e) (opens in a new tab). Microsoft's Data Protection Addendum supplies that contract. See our guide to business associate agreements.

Microsoft's default BAA solves the contract. It doesn't solve configuration: a SharePoint folder of referral letters shared through an "Anyone" link is covered by the BAA and still an impermissible disclosure waiting to happen.

This is general information, not legal advice. Confirm how it applies to your practice with a qualified advisor.

Which Microsoft 365 plans a BAA can cover

Account typeGoverned byBAA?
Commercial Microsoft 365 or Office 365 subscriptionMicrosoft's Data Protection AddendumYes, by default, for in-scope services
Microsoft 365 Personal, Family or PremiumConsumer Microsoft Services Agreement (opens in a new tab)No: the agreement doesn't mention HIPAA or a BAA
Free Outlook.com or consumer OneDriveSame consumer agreementNo

The consumer agreement (effective September 30, 2026) names Microsoft 365 Personal, Family and Premium, Outlook.com and OneDrive storage. None of it is part of your practice's tenant, so a doctor's personal Outlook.com address is outside the BAA even if the practice pays for Microsoft 365.

SharePoint, OneDrive and Exchange settings for PHI

Is SharePoint HIPAA compliant out of the box?

The service is covered; the settings are yours. In the SharePoint admin center, under Policies, then Sharing, Microsoft offers four external sharing levels (Microsoft Learn (opens in a new tab)):

LevelWhat it allowsFor PHI?
AnyoneLinks that work "without authenticating"No
New and existing guestsInvited people who sign in or verify with a codeWith care, for referral partners
Existing guestsOnly guests already in your directoryGood default
Only people in your organization"Turn off external sharing"Best for clinical sites

Microsoft notes that "the OneDrive setting can be more restrictive than the SharePoint setting, but not more permissive," and each site can be set the same or tighter than the organization.

Settings worth changing for a practice:

  • Default link type: "Specific people." Microsoft calls it "most restrictive."
  • "Limit external sharing by domain" to the domains of your referral partners and billing service.
  • "Guest access to a site or OneDrive will expire automatically after this many days." Set it so old guests drop off.
  • If "Anyone" links stay on for marketing sites, require them to expire and allow view only.

Exchange Online email

Microsoft Purview Message Encryption lets staff send encrypted email that "works with Outlook.com, Yahoo!, Gmail, and other email services"; outside recipients read it through an encrypted message portal (Microsoft Learn (opens in a new tab)). Admins can set mail flow rules, for example to encrypt every message to external recipients that contains chosen keywords. Check that your plan includes it before relying on it.

For chat and video, see microsoft teams.

Safe uses and unsafe uses for a practice

UseSafe?Condition
Patient files in a restricted SharePoint siteYesCommercial plan; sharing off or guests only
Referral packets shared with a partnerYes"Specific people" link to a work address
Patient email from Exchange OnlineYesEncryption for outside recipients
Copilot Chat over files with PHICovered serviceStaff training; same access rules
PHI in a personal Outlook.com or OneDriveNoConsumer agreement; no BAA
"Anyone" links to clinical foldersNoUnauthenticated access

Safer setup or alternatives

  1. Confirm your subscription is commercial, and that every staff account lives in the practice tenant.
  2. Build one restricted SharePoint site for clinical files, set to "Only people in your organization."
  3. Set "Specific people" as the default link and domain-limit external sharing.
  4. Turn on email encryption rules for messages to patients and outside partners.
  5. Review guests and sharing every quarter.

If your team already lives in Google, Google lists Gmail and Google Drive among the services in its BAA (Google (opens in a new tab)); see our gmail page. For every other tool on the front desk, start at HIPAA and everyday tools.

Medfy doesn't replace Microsoft 365. It runs the patient-facing website, where form and chat submissions land in an access-controlled patient CRM and inbox, stored in separate, encrypted HIPAA databases in the US or Canada. Medfy signs a BAA with each practice for its own services; see how Medfy handles patient data. A free marketing audit checks the website side, including tracking pixels on patient forms.

Frequently asked questions

Will Microsoft 365 sign a BAA?

Yes, automatically, for commercial subscriptions. As of October 2026, Microsoft says its HIPAA BAA is available through the Microsoft Online Services Data Protection Addendum by default to all customers who are covered entities or business associates. In-scope services include Exchange Online, SharePoint Online, OneDrive for Business, Teams and Forms. Microsoft won't sign your own BAA form instead. Confirm your subscription type with your compliance officer or attorney.

Is the free version of Microsoft 365 HIPAA compliant?

No. Free Outlook.com and OneDrive, and Microsoft 365 Personal, Family and Premium, run under Microsoft's consumer Services Agreement, which doesn't mention HIPAA or a BAA. Microsoft's BAA comes through the Data Protection Addendum for its enterprise services. Patient email and files belong in a commercial Microsoft 365 or Office 365 subscription, set up by an admin, never in staff members' personal accounts.

Can a practice use Microsoft 365 without patient information?

Yes, but on a commercial subscription you rarely need to. The BAA comes by default, so the more useful question is which parts of the tenant should hold PHI. Keep patient files in restricted SharePoint sites and OneDrive folders, and use open sharing only for sites with no patient information, such as marketing materials or staff schedules.

What is a HIPAA-compliant alternative to Microsoft 365?

Google Workspace is the usual alternative: Google lists Gmail and Google Drive among the services in its BAA, which an administrator accepts in the Admin console. Either suite only works with the right settings, such as restricted sharing and encrypted email to patients. Pick the one your team already knows, then confirm the setup with your compliance officer or attorney.

Sources

  1. HIPAA and the HITECH Act: Microsoft compliance offering (opens in a new tab) — Microsoft Learn. Accessed October 22, 2026.
  2. Microsoft Services Agreement (opens in a new tab) — Microsoft. Accessed October 22, 2026.
  3. Manage sharing settings for SharePoint and OneDrive in Microsoft 365 (opens in a new tab) — Microsoft Learn. Accessed October 22, 2026.
  4. Microsoft Purview Message Encryption (opens in a new tab) — Microsoft Learn. Accessed October 22, 2026.
  5. HIPAA compliance on Google Cloud and Google Workspace (opens in a new tab) — Google Cloud documentation. Accessed October 22, 2026.
  6. 45 CFR 164.502: Uses and disclosures of protected health information: general rules (opens in a new tab) — eCFR. Accessed October 22, 2026.
  7. 45 CFR 164.504: Uses and disclosures: organizational requirements (opens in a new tab) — eCFR. Accessed October 22, 2026.
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