Employers today face the challenge of providing good healthcare coverage and controlling costs. Traditional employer-sponsored health plans get more expensive each year. While employees still struggle to afford care.
This is why many organisations are exploring smarter alternatives — including a section 125 health care plan that allows employees to use pre-tax deductions for eligible benefits while helping employers reduce payroll tax liability. But forward-thinking companies are going even further.
Instead of relying on a basic cafeteria plan alone, they’re adopting integrated benefit strategies like the Lumara Plan, which combines tax savings, preventive care, and reimbursement programs into one seamless system. The result is a stronger employee benefits program, better healthcare access, and measurable financial savings — without increasing employer costs.
Understanding the Role of Section 125 in Modern Benefits
A section 125 benefit plan allows employees to pay for certain health-related expenses using pre-tax health benefits, lowering taxable income and creating tax-saving employee benefits for both employers and employees.
Common elements often include:
- Premium conversion programs
- An FSA health plan
- Dependent care accounts
- Healthcare reimbursement options
These flexible health benefit options are designed to improve affordability while creating payroll tax savings for businesses. However, a traditional cafeteria plan alone doesn’t always address employee wellness, retention, or access to healthcare. That’s where Lumara’s approach stands apart.
The Lumara Plan: A Smarter Benefits Strategy
The Lumara Plan is not simply a Section 125 program — it leverages Section 125 together with a fully managed PCMP and SIMRP, creating one of the most compliant and benefit-rich programs available.
This integrated structure includes:
- Section 125 tax-advantaged benefit design
- Preventative Care Management Plan (PCMP)
- Self-Insured Medical Reimbursement Plan (SIMRP)
- Automated compliance and administration
These components turn healthcare reimbursement plans into a smart workforce investment. Over 40,000 employees are enrolled in the Lumara Plan.
How the Lumara Plan Works
The Lumara Plan enhances your existing employer-sponsored health plans rather than replacing them. Here’s how the three components work together:
- Section 125 Component
Creates tax efficiency through structured benefit contributions and payroll integration.
- PCMP (Preventative Care Management Plan)
Supports preventive care, screenings, and wellness programs to improve long-term health.
- SIMRP (Self-Insured Medical Reimbursement Plan)
Helps employers reimburse eligible medical expenses. Moreover, it saves tax through structured healthcare reimbursement plans. This combination creates a modern employee benefits program that improves access to health care while reducing tax waste.
Employer Benefits of the Lumara Plan
For organisations looking to strengthen small business employee benefits or enterprise-level programs, Lumara delivers measurable value.
Employers typically see:
- About $600 per W-2 employee annually in payroll tax savings
- Around $60,000 saved per 100 employees
- No out-of-pocket implementation cost
- 5–10% reduction in healthcare costs
- Reduced claims averaging $1,400 over three years
- 30–45 day automated rollout
- Immediate bottom-line impact
- Improved retention, productivity, and morale
These payroll tax savings benefits begin quickly after implementation and require minimal HR involvement. Instead of increasing benefits budgets, companies redirect existing tax inefficiencies into meaningful employee support.
Employee Benefits That Make a Real Difference
Employees benefit just as much — often more — from the Lumara Plan. Participants typically experience a 3–4% net paycheck increase (about $100/month) thanks to tax savings built into the program.
The plan delivers comprehensive support, including:
- $0 copay 24/7 Telehealth and virtual care
- Family coverage with spouse and dependent support
- Employee Assistance Program (EAP)
- Mental health and counseling services
- Mayo Clinic wellness programs and health dashboard
- Minimal Essential Coverage (MEC)
- Group Term Life Insurance ($60–$100/month value)
- Discounts on vision, dental, and prescriptions
- RX coverage with no copays
- In-person urgent care access
- Preventive care support through PCMP
These benefits extend to employees and their families — reinforcing a family-first workplace culture without increasing employer costs.
Why Integrated Benefit Plans Are the Future
A traditional Section 125 health care plan focuses primarily on tax savings. The Lumara Plan expands that idea into a full workforce-wellness strategy. This matters because today’s employees expect more than insurance coverage.
They want:
- Accessible healthcare
- mental health support
- financial protection
- family coverage
- preventive care tools
Employers want:
- cost control
- compliance
- automation
- retention improvements
- predictable healthcare spending
By combining Section 125, PCMP, and SIMRP, Lumara delivers both. This is why integrated compliant benefit plans are becoming a preferred strategy for modern businesses.
Supporting Workplace Culture Without Increasing Costs
Strong teams are built on trust and care. Benefits play a major role in that equation.
When employees feel supported:
- engagement rises
- retention improves
- productivity increases
- healthcare risks decrease
The Lumara Plan allows employers to build that culture without increasing benefits spending. It’s a smarter way to design flexible health benefit options that align financial efficiency with employee well-being.
Why Small and Mid-Sized Businesses Are Adopting the Lumara Plan
Many companies assume advanced benefits programs are only for large corporations. But the Lumara Plan works exceptionally well for organisations seeking small business employee benefits that are affordable, compliant, and easy to implement.
Because Lumara manages:
- compliance
- Administration
- payroll integration
- onboarding
- ongoing support
HR teams can focus on people instead of paperwork. Implementation typically takes just 30–45 days, making adoption fast and low-risk.
Compliance and Simplicity Matter
Healthcare regulations can be complex. Lumara simplifies the process with a fully managed system designed for compliance with IRS and ACA requirements. Employers don’t need to become benefits experts.
Lumara handles:
- plan documentation
- payroll coordination
- employee communication
- compliance monitoring
- reporting
This ensures your Section 125 benefit plan operates smoothly while delivering consistent value.
A Real-World Example of Impact
Imagine a company with 100 employees implementing the Lumara Plan:
- ~$60,000 annual payroll tax savings
- Increased employee take-home pay
- Expanded healthcare access
- reduced claims costs
- stronger retention
That’s the power of combining pre-tax health benefits, wellness programs, and reimbursement planning into one strategy.
Conclusion: A Smarter Way to Deliver Health Benefits
A traditional Section 125 health care plan can create valuable tax savings, but today’s workforce needs more than tax efficiency alone. The Lumara Plan delivers a complete solution by integrating Section 125, PCMP, and SIMRP into a single automated, compliant system. Through structured pre-tax deductions, employers unlock tax-saving employee benefits, while employees gain access to healthcare, financial protection, and family coverage — all without paying more. More than 40,000 employees are already enrolled, and adoption continues to grow as organisations recognise the value of modern employee benefits programs. If your organisation is looking for smarter, flexible health benefit options, the Lumara Plan may be the most practical next step. Learn how the Lumara Plan can help you reduce payroll taxes, strengthen retention, and build a healthier workforce. Book your 10-minute consultation and get a free proposal today.
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FAQs
What is the Lumara Plan?
The Lumara Plan is an employee benefits program that combines a section 125 benefit plan, a Preventive Care Management Plan (PCMP), and a Self-Insured Medical Reimbursement Plan (SIMRP). It helps employees get better health support while helping employers save on payroll taxes.
How does a Section 125 plan help employees save money?
A section 125 health care plan lets employees use pre-tax health benefits to pay for certain healthcare costs. This lowers taxes and helps employees keep more of their paycheck.
How does the Lumara Plan provide more benefit choices?
The Lumara Plan offers flexible health benefit options like telehealth care, wellness tools, reimbursement support, and family coverage in one simple plan.
Does the Lumara Plan cost employers anything to start?
No. The plan is designed to be cost-neutral to implement, and employers can save money through payroll tax savings.
Can small businesses use the Lumara Plan?
Yes. Small businesses can use the Lumara Plan to offer strong health benefits, support employees and families, and stay within budget.
