For Legal / Counsel · The compliance research path
The Design Basis, on the Table.
You'll ask whether this is another wellness-indemnity scheme dressed up in plan language. Fair question — here's the structure in full, the IRS memo that killed the imitators, and the plan documentation for your review before anyone enrolls.
What Vital 110 is, stated plainly:
A Supplemental Plan
Runs alongside the employer's existing major-medical coverage — it does not replace it.
ACA MEC Positioning
Positioned by Health Compass Inc. as ACA Minimum Essential Coverage that satisfies Employer Mandate Penalty A.
Section 125 Pre-Tax Structure
Premiums run through the employer's cafeteria plan under the ERISA/DOL framework.
Self-Insured, TPA-Adjudicated
Health Compass structures the plan as self-insured; payments are adjudicated as claims via assignment-of-benefit, documented on an EOB.
IRS CCA 202323006 (2023). The IRS concluded that cash paid to an employee with no unreimbursed medical expense is taxable wages under §105(b) — the ruling that made the WIMPER/fixed-indemnity category radioactive. Vital 110 is designed to fall outside it: payments run as TPA-adjudicated claims on an EOB rather than flat wellness cash. We volunteer this citation rather than hope you miss it.
The diligence framework we invite you to apply
Five questions any plan promising payroll-tax savings should pass — hold us to them.- Is there an ACA-qualifying health plan (MEC) underneath — or just a wellness program?
- Are payments adjudicated as claims and documented on an EOB — or flat cash per activity?
- Is every payment tied to an actual covered medical encounter (§105(b)) — or paid regardless?
- Is participation a monitored plan requirement — or an honor-system checkbox?
- Will they put their compliance basis in writing and welcome your CPA and counsel reviewing it before you enroll?
What RHS Does and Does Not Represent
Randolph Health Services is an independent marketing organization. It does not underwrite, insure, or administer the plan, and nothing on this page is tax or legal advice. Health Compass's AOB/EOB framing is a design basis the IRS has not blessed, and no tax outcome is guaranteed. We ask that your counsel and tax advisors review the plan documents on the front end — that is the posture of a plan with nothing to hide.
Request the Compliance Research Path
Get the Vital 110 Compliance Brief — the structural comparison, the CCA analysis, the diligence framework, and how to obtain plan documents for review.
Your Compliance Materials.
Vital 110 Compliance Brief
The executive version — the structural difference vs. WIMPER/SIMRP, the CCA 202323006 analysis, and the five-question diligence framework.
WIMPER / SIMRP White Paper — Fully Cited
The complete record for your CPA and counsel: the IRS rulings and Chief Counsel Advice that killed the wellness-reimbursement schemes, authority by authority, and where Vital 110's design stands against each one.
Plan Documents for Review
The full plan documentation is available from Health Compass Inc. for counsel review before enrollment. We'll route your request directly.
The Compliance Brief states Health Compass's design basis and is not a legal or tax opinion. RHS makes no assertion regarding the structure's tax treatment; rely on your own counsel and tax advisors.