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I am sorry to hear about this situation. Essentially, the question becomes: can an employee at the same company look at another employee's medical records for non-medical purposes?
HIPAA is not clear on this. it does not say to which extent other employees/management can have access to an employee's medical records The rule of thumb that has been shaped by court opinion is that other employees such as HR and management CAN have access to such records provided that they have legitimate business reason to access it.
Legitimate business normally means medically-related matters such as FMLA, ADA accommodations, etc. So legitimate reasons are normally medically-related. However, it is arguable that this can be expanded into investigation matters if the employee is suspected of wrongdoing or criminal actions and their medical file is somehow involved. While this is arguable and while we are essentially talking about a gray area (access by other workers of medical records for non medical but also legitimate purposes) from what already is only a rule of thumb but not really law (access by other workers), I really do not see the US Dept of Health and Human Services having an issue if the review was legitimate and the employee that accessed it was specifically in a position to investigate the claim for the company.
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