You are absolutely correct in saying that it was meant to protect one's health information in professional situations, but that applies to this situation, as well. If an employee of a business asks a disabled customer why they qualify for a handicap space, what their disease is, and anything other than the service that their service dog provides then they are venturing in HIPPA territory. They are not acting as a private citizen when they are blocking a service animal from entering a business or a landlord, they are acting in a professional relationship as an owner or representative of that business. This employee was representing Walmart(in the specific story that this involves) and anything that they say to that customer is Walmart speaking.
As a private citizen, off the clock and out of uniform a person can ask any other person anything that they want.It is rude and none of their business, but that is just 2 people talking. It is a constitutionally protected right of freedom of speech. That disabled individual does not have to respond and explain anything about the dog to a private citizen and can just keep on walking because they can't prevent her entry to any store as a nosey person asking questions. As a business owner or employee of a business, by not allowing her to enter the store with her certified service dog(it is not a therapy dog and has the training/certification) until she gives more details about her disability than what tasks her dog is certified to do for her, is in violation of the HIPPA laws because a business/consumer relationship is a professional relationship.They are also liable facing legal ramifications for harassment, ADA violations, and HIPPA because there is no reason that Walmart or any other business needs to know the details of her disease and why she needs help or the specific services that she tells them that her dog performs for her. She is legally obligated to simply tell them that she is is disabled, that her dog is prescribed as part of her medical plan, and that her dog helps her with opening doors, blood sugar issues, guide dog, ect. As long as they know that she is disabled and that her dog is a certified service dog that is performed perform pressure therapy to provide aid for her specific disability when needed, that is where the conversation ends if the dog is well behaved and not doing anything wrong. She does not even have to tell them what her diagnosis is, as that is none of their business because they are Walmart greeters and not medical professionals.
It also applies to employee and employer relationships, but HIPPA covers many areas outside of employers. I have to sign a paper just for my wife to be able to receive my test results if she calls for me. My deceased parents had to sign a HIPPA form to release medical information to my sister and I, when we were helping them through their medical issues prior to their passing this past year. My wife is a RN and can not even tell me if she sees or treats my family or friends unless they give her permission to tell me, due to HIPPA. Several times she has treated friends and I don't find out until I see them and they comment on what a great job she did. It basically covers the right of a patient's privacy to anyone without that patient giving consent to release what they choose to divulge. With the ADA, or Americans Disability Act, it takes that privacy up another notch when it involves issues such as medical necessity of service animals, parking permits, electric wheelchairs, and other medical devices and access. (ramps, elevators, ect..) Walmart employees can not ask me why I have a handicapped parking permit because my disability is not visible. Going into details about my disability from an employee would be venturing into personal information in a professional relationship.