Taxes. No one loves them, especially when you’re overpaying.
Each year, thousands of companies leave money on the table by not making full use of employee benefits available to them in order to lower their tax burden. Health insurance for tax purposes is one of the most neglected but strongest means of generating savings. But traditional plans often come with complexity, compliance concerns, and upfront costs.
That’s where Lumara comes in.
The Lumara Plan is a fully managed solution that helps businesses reduce their tax burden while giving employees better benefits, without increasing costs or changing existing insurance. It leverages Section 125 along with two powerful components: a Preventive Care Management Program (PCMP) and a Specialized Insurance Medical Reimbursement Plan (SIMRP). This unique structure creates one of the most compliant and benefit-rich programs available today.
Let’s break down how Lumara helps reduce tax liability—simply and effectively.
Why Health Insurance Matters for Taxes
When rightly structured, health insurance and benefits can be highly tax advantageous for both the employer and employees.
Under the Section 125 plan, otherwise known as a cafeteria plan, the employees are permitted to pay for certain benefits, such as insurance premiums, on a pre-tax basis. This results in the employer avoiding a portion of payroll taxes (Social Security, Medicare, and unemployment taxes) and the employee receiving a larger net paycheck.
But Lumara doesn’t stop at Section 125.
The Lumara Plan takes this concept further by integrating a fully managed PCMP and SIMRP. This allows employers to offer even more tax-free benefits, generate deeper savings, and stay fully compliant with current regulations.
And best of all? It’s hands-off. You don’t have to manage a thing.
How the Lumara Plan Works
The Lumara Plan includes three key components that work together:
- Section 125 framework to convert taxable wages into pre-tax health benefits
- Preventative Care Management Program (PCMP) that delivers no-cost wellness services and telehealth
- Specialized Insurance Medical Reimbursement Plan (SIMRP) that provides additional tax-free coverage options
Together, these create a seamless, automated system that generates savings without requiring plan changes or additional spending.
Here’s what that looks like in practice.
Employer Benefits: Real Savings with No Trade-Offs
If you’re an employer with at least 25 W-2 employees, the Lumara Plan can help you unlock meaningful tax savings right away.
Here’s what you get:
Save ~$600 per employee per year in payroll taxes
That’s $60,000 in annual savings for every 100 employees
- No out-of-pocket cost to implement
- Reduced healthcare claims—an average savings of $1,400 per employee over three years
- Fast rollout—fully automated within 30 to 45 days
- Boost retention and performance by offering modern, tax-free benefits
- Immediate bottom-line impact
If you’ve been looking for a smarter way to reduce your business’s tax liability, this is it.
Employee Benefits: More Value, No Change in Pay
Here’s the kicker—employees love the Lumara Plan too.
While employers save thousands, employees enjoy better benefits without losing a cent of take-home pay. In fact, many see a 3–4% net increase in their paycheck (about $100/month), thanks to the tax-free structure.
Here’s what they receive:
$0 copay 24/7 Telehealth (doctors, nurses, mental health support)
- Access to Mayo Clinic wellness tools, mental health resources, and coaching
- Tax-free Universal Life, Disability, and Critical Illness coverage
- Spouse and dependent enhancements—more value for the whole family
- No change in net pay—just more benefits for the same paycheck
As of now, more than 40,000 employees are already enrolled in the Lumara Plan and benefiting from this win-win model.
Why Lumara Is Different from Traditional Section 125 Plans
Let’s be clear: Lumara is not just another Section 125 plan.
It leverages Section 125 in combination with PCMP and SIMRP, making it one of the most advanced and benefit-rich programs on the market. This allows Lumara to deliver:
- Greater tax savings
- Full legal compliance
- A turnkey, automated setup
- Zero cost for employers or employees
Unlike traditional plans that may only reduce taxable wages or offer limited pre-tax benefits, Lumara delivers a complete strategy for modern employers looking to support their teams while protecting their financial health.
A Smarter Way to Support Your Team—and Your Bottom Line
Lumara was built around one simple idea: employees deserve better support, and employers deserve better margins.
Every year, businesses unknowingly waste thousands of dollars in payroll taxes, while employees miss out on valuable, tax-free health benefits. The Lumara Plan helps fix that.
Here’s what makes Lumara the smart choice:
- Fully managed from start to finish
- No disruption to current health plans
- Compliant and audit-ready
- Loved by both HR teams and CFOs
It’s a hands-off, modern solution for forward-thinking companies that want to grow stronger by supporting their people.
What Types of Businesses Can Benefit?
If you’re a U.S.-based company with 25 or more W2 employees, and you want to:
- Lower your payroll tax liability
- Increase employee satisfaction
- Reduce claims and benefits costs
- Offer more support with no extra burden
…then the Lumara Plan could be the ideal fit.
This program is currently trusted by employers across industries—from logistics and healthcare to manufacturing, tech, and more.
Final Thoughts: Don’t Miss This Opportunity to Save
If your business is trying to reduce tax liability while building a healthier, more loyal workforce, the Lumara Plan offers a no-brainer solution. You get compliant, automated tax savings with better benefits, without paying a penny more or overhauling your existing health plan.
It’s a win-win.
Ready to stop overpaying taxes and start delivering better benefits?
Book your 10-minute consultation and get a free proposal by talking with an expert today!
Explore the Lumara Plan on our website and see how much your business could save this year.