What if you could save thousands annually, without cutting benefits or raising costs? That’s exactly what the Lumara Plan was designed to do. By leveraging a Section 125 cafeteria plan alongside a fully managed Preventative Care Management Plan (PCMP) and a Self Insured Medical Reimbursement Plan (SIMRP), Lumara offers one of the most compliant, automated, and benefit-rich healthcare solutions available today.

In this article, we’ll break down what a Section 125 cafeteria plan really is, how it works within the Lumara Plan, and why it’s creating such a big impact for both employers and employees.

What Is a Section 125 Cafeteria Plan?

Let’s start with the basics.

A Section 125 cafeteria plan—named after Section 125 of the IRS code—allows employees to pay for certain benefits with pre-tax dollars. This lowers taxable income for both employees and employers, unlocking real savings on both sides of the paycheck.

But here’s where most employers miss out: a traditional Section 125 cafeteria plan only scratches the surface. It doesn’t include the additional health and wellness benefits employees need—or the cost-saving opportunities that employers want.

That’s why Lumara Health created the Lumara Plan, a smarter, more complete solution.

The Lumara Plan: More Than Just a Section 125 Plan

The Lumara Plan includes Section 125, but goes much further. It integrates a PCMP and SIMRP, creating a fully managed, hands-off solution that’s already benefiting tens of thousands of employees across the country.

Here’s what makes it different:

• Section 125 reduces taxable income. 
• PCMP delivers 24/7 access to preventative care services. 
• SIMRP reimburses qualified medical expenses, tax-free. 

Together, these three components form a fully compliant, cost-free, and automated benefit strategy that drives results—without disrupting current health plans.

Why Employers Love the Lumara Plan?

Employers often assume that improving benefits means increasing costs. But with the Lumara Plan, the opposite is true.

Here’s what employers gain:

• Save ~$600 per employee per year
  That’s $60,000 for every 100 employees in pure payroll tax savings. 
• Zero out-of-pocket cost to implement
  You won’t pay anything to start using the Lumara Plan. 
• Fast, automated rollout (less than 50 days)
  No internal resource drain. We handle the heavy lifting. 
• Lower healthcare claims (avg. $1,400 savings over 3 years)
  Preventative care leads to fewer claims and lower premiums over time. 
• Immediate bottom-line impact
  The savings show up in your payroll reports quickly. 
• Boost in retention and performance
  Better benefits mean happier, healthier teams—and a more loyal workforce. 

All without changing your existing group health plan or affecting your employees’ take-home pay.

What Employees Get from the Lumara Plan?

Employees get real, tangible benefits—without losing any of their current coverage or paying more out of pocket.

Here’s how it helps them:

• 3–4% increase in net take-home pay
  That’s like giving your team a $100/month raise—without increasing payroll. 
• $0 copay Telehealth, mental health, and wellness services
  Access to doctors, nurses, counselors, and health coaches 24/7. 
• Mayo Clinic health tools & dashboard
  World-class resources for managing health and wellness. 
• Critical Illness, Disability, and Universal Life plan
  Extra protection for life’s “what-ifs”—with no cost increase. 
• Spouse & dependent coverage options
  Extend benefits beyond the employee. 

And the best part? These benefits are tax-free and don’t reduce their paychecks.

Section 125 Cafeteria Plan Rules: How It Stays Compliant

One of the most common questions we get is: “Is this legal?”

Yes. In fact, it’s built entirely around compliance.

The Section 125 cafeteria plan rules are strict—but the Lumara Plan was developed by compliance experts and legal teams to follow IRS guidelines exactly.

We manage all the documentation, reporting, and administration behind the scenes. That means you get the benefits without the risk or workload.

Key compliance facts:

• Adheres to Section 125, PCMP, and SIMRP federal guidelines 
• Reviewed and approved by third-party legal and tax professionals 
• Includes all necessary plan documents and nondiscrimination testing 
• Fully managed with audit-ready records 

You won’t need to hire extra staff or worry about IRS regulations. We’ve got it covered.

Why the Lumara Plan Works So Well for Large Employers?

If your organization has 40,000+ enrolled employees, you’re in the ideal range for the Lumara Plan.

Our system is built for scale, meaning:

• We can onboard large groups quickly and smoothly 
• We offer full automation and third-party administration 
• We provide dedicated onboarding and account support 

That’s why so many companies in your space are turning to Lumara Health.

Built for a Better Workplace

At Lumara, we believe that strong teams start with care. Our mission is simple:

• Employees deserve better support. Employers deserve better margins.
• Every year, businesses waste thousands on payroll taxes. Meanwhile, their employees go without valuable, tax-free health benefits.

The Lumara Plan fixes that by delivering a hands-off, smarter way to reduce costs and reward teams.

• No changes to your existing health plan 
• No extra cost 
• No impact on take-home pay 

Just meaningful savings and better benefits—for everyone.

See Why More Employers Are Making the Switch

More than 40,000 employees are already enrolled in the Lumara Plan—and that number is growing every month.

If you’re ready to:

• Save $600+ per employee 
• Offer better benefits with no extra cost 
• Protect your bottom line without reducing coverage 

Then it’s time to explore what Lumara can do for your team.

Let’s Talk

Book Your Free 10-Minute Consultation

In less than 10 minutes, we can show you how the Lumara Cafeteria Plan works, what your savings could look like, and how fast we can get started.

Visit our website to schedule your consultation
Or request a free proposal today.