A counselor who works in the Mental Health population has been openly taking their psychiatric medications in front of co-workers and clients with mental disorders. Is this a violation? What steps are needed to report this? Should someone address it with upper management or file a complaint?

It's not a HIPAA violation is this person is doing it of their own accord. It is not very correct as they are taking their own medication in front of others, but they may be doing it to prove a point.

What makes a HIPAA violation? That would be the healthcare worker revealing the diagnosis or treatment of a patient.

I agree. This is not a HIPPA violation. HIPPA is to Protect the Privacy of Personal Health Information. This means YOUR information.
She could wear a shirt that says SHE has AIDS. It is HER information.

Now if she told a co worker or another patient that YOU had AIDS, well that would be a different story.

AS for the medication she obviously does not care who knows and if she feels that taking her meds in front of patients that need the same medication, I suppose it would make the patient feel at eaze.

Yes, why would it be a problem for someone to take their medication in front of others?? Why is this even an issue to you.

Do you have something against this person ?

I agree it is not a HIPPA violation. However it may be an ethical issue that could be addressed with the board of social work or psychiatry depending on her license. I however do not think the board would be able to do anything.