HealthWorX Urges Employers to Scrutinize Healthcare Tax Schemes

HealthWorX, a nonprofit third-party administrator (TPA), is urging employers to re-evaluate their strategies for funding and delivering employee healthcare. Amidst increasing scrutiny from the Internal Revenue Service (IRS) on tax-engineered Section 105(b) reimbursement programs, HealthWorX asserts its nonprofit-TPA model provides businesses a reliable method for cost reduction without navigating legal grey areas.

The model integrates a mission-driven nonprofit with professional plan administration. HealthWorX measures success by the actual access employees, particularly frontline workers, have to primary care providers, rather than by premiums collected or commissions paid.

"Employers are being sold savings that may not survive an audit," stated John Zabasky, CEO of HealthWorX. "Our model does not rely on creative tax interpretations. The savings are achieved by removing profit-driven layers between patients and care."

HealthWorX also advises employers to closely examine the compensation structures of their advisors. Traditional insurance agents often receive commissions tied to premium size, which can incentivize higher costs. The company encourages employers to question their advisors about their compensation and whether their incentives align with the employer's best interests.

The recent growth of HealthWorX reflects an increasing number of employers seeking compliant alternatives as regulatory attention on tax-engineered plans intensifies. The organization aims to scale the nonprofit-TPA model nationally.