When I'm filling out applications and they ask about disabilities, I usually pick "prefer not to disclose." Does choosing that automatically disqualify me? It feels wrong that they even ask this. Isn't this like a HIPAA thing?

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It's a federal regulation (not HIPAA), any company that does business with the federal government is required to collect the information. Under federal law, companies are expected to have 7% of their employees be people with disabilities. It's designed to prevent the kind of discrimination that used to be commonplace. The information is generally not seen by hiring managers, though at smaller companies it could be. If you fear discrimination, you can refuse to answer.

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At smaller companies I would assume that it 100% is seen by hiring managers. Even some large companies that have small groups.

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