How Can A Section 125 Cafeteria Plan Boost Your Bottom Line?

Stronger Margins Start with Smarter Benefits

Every year, employers unknowingly leave tens of thousands of dollars on the table due to outdated or underutilized benefits programs. What if there was a way to reduce healthcare claims, lower payroll taxes, boost employee loyalty, and do it all without spending a dime?

That’s exactly what the Lumara Plan is designed to do.

Built around a modern, fully compliant framework, Lumara combines the advantages of a Section 125 cafeteria plan with two powerful tools: the Preventative Care Management Plan (PCMP) and the Self Insured Medical Reimbursement Plan (SIMRP). The result? One of the most benefit-rich, automated employee programs available—and a proven way to boost your company’s bottom line.

Let’s break it down.

What Is a Section 125 Cafeteria Plan?

A Section 125 cafeteria plan is a tax-saving benefit that allows employees to pay for eligible expenses, like health insurance premiums or medical care, using pre-tax dollars. By reducing taxable income, both the employee and employer save on taxes.

But here’s where it gets even better: The Lumara Plan doesn’t stop at Section 125. It layers in advanced features and support that traditional plans simply can’t match.

The Lumara Plan: Not Just a Section 125 Plan

While many companies already use Section 125 to offer pre-tax benefits, the Lumara Plan takes it further. It leverages Section 125 pre tax deductions while integrating a fully managed PCMP and SIMRP, creating a robust structure that delivers:

Immediate payroll tax savings for employers
Net paycheck increases for employees
No out-of-pocket cost to either party
Full legal compliance
Zero disruption to existing health plans

How Does the Lumara Plan Work?

The Lumara Plan uses a three-part framework:

1. Section 125 Integration

Employees opt in to pre-tax deductions for eligible health-related services, reducing their taxable income. Employers benefit from lower FICA, FUTA, and SUTA obligations.

2. Preventative Care Management Plan (PCMP)

This wellness-forward component includes access to:

$0 copay Telehealth services (24/7)
Mental health support, addiction services, and coaching
Wellness tools and Mayo Clinic-backed dashboards
Family participation with spouse and dependent coverage

3. Self Insured Medical Reimbursement Plan (SIMRP)

Employees gain access to additional insurance protections:

Universal Life Insurance
Disability Coverage
Critical Illness Benefits

And unlike other programs, this coverage is provided at no cost to employees or the employer.

Lumara = Bigger Savings, Better Benefits

For Employers:

The Lumara Plan provides a rare win-win scenario. You support your workforce and improve retention, without increasing costs.

Here’s what employers gain:

~$600/year in savings per W2 employee
That’s $60,000/year for every 100 employees
No out-of-pocket cost or plan administration burden
30–45 day automated implementation
$1,400 in reduced claims over 3 years
Improved retention, performance, and morale
Fully managed compliance and onboarding

With tens of thousands of employees already enrolled, Lumara has a track record of success and scalability.

For Employees:

Employees love the Lumara Plan because they get more without paying more.

3–4% increase in net take-home pay (roughly $100/month)
$0 copay 24/7 Telehealth, mental health, wellness tools
Access to Mayo Clinic wellness resources
Enhanced family benefits (spouse & dependents included)
Critical Illness, Disability, and Universal Life Insurance

All this with no changes to their current health plan or take-home pay structure.

Why Employers Choose Lumara?

Lumara was built around one simple idea: employees deserve better support, and employers deserve better margins.

Most businesses don’t realize they’re missing out on thousands of dollars in payroll tax savings every year. Meanwhile, employees struggle with access to affordable, meaningful benefits.

The Lumara Plan solves both problems.

No disruption to current health plans
No additional cost
No administrative headache
100% legal, 100% compliant

It’s a hands-off, smarter way to build a high-retention, benefit-forward workforce—especially for companies with 40,000–70,000+ enrolled employees.

Real Impact

Implementing the Lumara Plan takes just 30–45 days and is fully automated. You get immediate results without lifting a finger.

Bottom-line impact?

$60K saved for every 100 employees
Boosted employee satisfaction
Reduction in healthcare claims
Increased loyalty and productivity

That’s the power of combining Section 125 pre tax deductions with wellness and insurance solutions that employees actually use.

Designed for Modern Employers

In today’s competitive hiring market, benefits are a key differentiator. But adding traditional perks can be expensive and time-consuming.

Lumara is different.

It’s a no-cost, zero-disruption way to enhance your culture, improve retention, and lower costs—all while keeping your current health insurance intact.

This is how leading companies create a family-first workplace without spending more.

More Than Just a Plan—It’s a Movement

More than 40,000 employees are already enrolled in the Lumara Plan—and for good reason. It’s one of the most compliant, cost-efficient, and employee-loved programs in the industry.

If you’re an employer looking for smart ways to protect your margins and care for your people, this is it.