HealthWorX Offers Employers a Safer Path to Lower Healthcare Costs as IRS Scrutiny of 105(b) Schemes Grows

Nonprofit third-party administrator urges employers to choose transparent, compliant savings over tax-engineered workarounds and commission-driven advice

OXNARD, Calif., Oct. 9, 2026 /PRNewswire/ -- HealthWorX, a nonprofit third-party administrator (TPA), is calling on employers to rethink how they fund and deliver employee healthcare. As the Internal Revenue Service continues to scrutinize tax-engineered Section 105(b) reimbursement programs, HealthWorX says its nonprofit-TPA model gives businesses a durable way to cut costs without gambling on legal grey areas.

The model pairs a mission-driven nonprofit with professional plan administration. Instead of measuring success by premiums collected or commissions paid, HealthWorX measures whether workers, especially frontline employees, can actually see a primary care provider when they need one.

Built to Last, Not to Exploit a Loophole

Many so-called 105(b) programs promise dramatic payroll-tax savings by routing wellness or indemnity payments through pre-tax structures. The IRS has warned that arrangements paying benefits regardless of actual medical expenses may not qualify for tax-free treatment. Employers who adopt them can face back taxes, penalties, and amended filings.

"Employers are being sold savings that may not survive an audit," said John Zabasky, CEO of HealthWorX. "Our model doesn't depend on creative tax interpretations. The savings come from removing profit-driven layers between patients and care."

HealthWorX says its approach differs from 105(b) schemes in three key ways:

• Compliance first: plans are administered under established, well-understood rules, not novel tax positions.
• Real savings: costs fall because administration is run at nonprofit margins, not because tax liability is shifted.
• Real access: success is measured by whether employees use affordable primary care, not by paperwork benefits that go unused.

Follow the Commission

HealthWorX also cautions employers to look closely at who is advising them. Traditional insurance agents are often paid commissions tied to premium size, which can reward keeping costs high. When an employer explores a lower-cost alternative, some agents push back because a cheaper plan means a smaller paycheck for them.

"If your advisor gets paid more when you pay more, that's a conflict of interest," said Zabasky. "Business owners deserve advice that puts their employees and their bottom line first, not a broker's renewal commission."

HealthWorX encourages employers to ask any advisor three questions: How are you compensated? Do you earn more if my premiums rise? Will you show me every option, including ones that pay you less?

A Growing Alternative

HealthWorX's recent exponential growth reflects employers seeking a compliant alternative as regulatory attention on tax-engineered plans increases. The organization says its goal is to continue scaling the nonprofit-TPA model nationally, reducing administrative complexity while expanding access to affordable care.

"The question isn't just whether your employees have coverage," said Zabasky. "It's whether they can actually use it. That's the standard we hold ourselves to."

About HealthWorX

HealthWorX is a nonprofit third-party administrator based in Oxnard, California. Combining a mission-driven nonprofit structure with professional plan administration, HealthWorX helps employers lower healthcare costs and measure what matters most: whether workers can access affordable primary care.

Media Contact: 
Dr. Diana McCosham, MD, MBA
Marketing Director, WorXsiteHR
[email protected] 
877-479-3591 x110

SOURCE HealthWorX