AI Startup Nayya at Center of Google Health Benefits Controversy Amid Privacy Concerns

Google’s attempt to streamline employee health benefits through an AI-powered startup has sparked a privacy backlash, centering on Nayya, a New York-based company founded in 2020. The startup, which has raised over $130 million, provides AI-driven tools to help employees navigate complex healthcare and financial benefits. Its investors include major HR technology firms like Workday and ADP. The controversy erupted when Google informed its U.S.-based employees they would need to share personal health data with Nayya to access their benefits. This requirement, according to Nayya CEO Sina Chehrazi, was imposed by Google, not the startup. Chehrazi said such mandatory data sharing is rare—most of Nayya’s partners allow employees to opt in to data sharing on a case-by-case basis, only when they seek help. Initially, Google’s messaging suggested employees who declined to share data would lose access to benefits. That led to widespread employee concern over privacy and data control. In response to criticism, Google updated its policy, clarifying that employees can choose not to use Nayya without affecting their benefits enrollment. Employees are not required to opt in. Nayya’s platform uses AI to analyze employee health profiles and recommend benefits they’re eligible for, such as preventive care or mental health services. It also tracks benefits usage, like deductible status, and helps users avoid surprise medical bills by guiding them toward fully covered services. Future features include automatically pre-filling and submitting insurance reimbursement forms—actions that could save employees time and money. While the immediate benefit to employees is clearer, the value to employers is more indirect. By helping employees make better use of existing benefits, employers may see lower long-term healthcare costs and improved workforce well-being. Over time, Nayya also helps employers identify underused benefits, enabling them to cut unnecessary expenses. Nayya currently serves over 1,000 employers, including law firm Goodwin Procter and health system Bon Secours Mercy Health. Most partnerships are through existing HR platforms like Workday or ADP. However, Google uses a different system—Benefitfocus—and thus Nayya has a direct contract with the tech giant. The integration with Google is focused on decision support during open enrollment, using Nayya’s platform to guide employees toward optimal benefit choices. More advanced AI tools, including automated actions like form submissions, are expected in the coming months. Chehrazi believes Nayya stands out from past health benefits navigators—many of which failed or went private—because of its ability to integrate data across systems and deliver tangible savings. He also credits its deep partnership with Workday for strong market reach. As AI becomes more embedded in workplace tools, the balance between innovation and data privacy remains a key challenge. Chehrazi emphasized that the future of data lies in consent: helping only those who want help, and only in ways they choose.