I AM FOOT FOOT

Doesn't HIPPA apply only to health care providers?  I don't think employers are obligated to keep medical conditions secret.  I could be wrong though.  

@NUance it's been a few years since I offered health insurance as a benefit but it was definitely a thing that we had to comply with as an employer. However, I'm not sure if it applies if we are not providing health insurance 

If you, as an employer, offer health insurance, your collecting information from employees and passing it on to the insurance company is acting on behalf of the insurance company.   I think that would be a different situation than if someone called in sick.  But like I said, I could be wrong about this.