How Can Section 125 Plans Help You Attract & Retain Top Talent?

With the competitive nature of today’s job market, wonderful salaries by themselves are no longer sufficient to cause top performers to be content. More than that, employees want better benefits, greater support, and true value for their efforts. That’s where the Lumara Plan steps in. It’s not another Section 125 benefit plan. It is an integrated solution that enables companies to win the talent war and save thousands annually on Section 125 taxation. Let’s get into how Section 125 plans, particularly those that use PCMP and SIMRP, such as the Lumara Plan, can be a game-changer for your retention and hiring efforts.

What Is a Section 125 Benefit Plan — and How Is the Lumara Plan Different?

Fundamentally, a classic Section 125 benefit plan (also referred to as a cafeteria plan) allows employees to pay for some expenses using pre-tax dollars. That can be genuine savings for employers and employees alike. But the Lumara Plan does that several steps further.

The Lumara Plan utilizes Section 125 in combination with a fully administered Preventive Care Management Plan (PCMP) and Self-Insured Medical Reimbursement Plan (SIMRP). This builds one of the most compliant, benefit-rich programs on the market, to return more money to employees’ pockets and more savings to employers’ bottom lines. The Lumara Plan is more than a Section 125 plan — it combines Section 125 with PCMP and SIMRP in a new, automated, and free manner.

Why Benefits Are More Important Now Than Ever

Employees today expect more. Benefits are now one of the top three considerations job applicants take into account when deciding on employment, a recent Gallup study reveals. Providing a robust, contemporary benefits package like the Lumara Plan assists companies:

Stand out from the competition

Attract high-caliber talent faster

Build loyalty and reduce turnover

Foster a culture of care and well-being

It’s simple: if you’re not offering better benefits, your competitors will.

How Section 125 Taxes Play a Key Role in Savings

One major advantage of offering a Section 125 benefit plan is the savings it creates through Section 125 taxes. Here’s how:

Employees’ taxable income is reduced because eligible expenses are paid pre-tax.
Employers can save around $600 annually per W2 payroll employee in taxes such as FICA and FUTA.

With the Lumara Plan, businesses can save around $60,000 for every 100 employees, with no out-of-pocket expenses. And the savings begin practically the instant they implement it, which can be done in only 30–45 days.

The Employee Value: Why They’ll Love It

Providing the Lumara Plan demonstrates that you care about employees’ financial well-being. Employees participating in the Lumara Plan receive:

A 3–4% net paycheck boost (approximately $100 per month)

$0 copay for telehealth, mental health, and wellness services 24/7

Mayo Clinic health tools and dashboards access

Critical illness, disability, and universal life insurance coverage

Spouses and dependents’ coverage enhancements

Best of all? There’s no effect on their existing take-home compensation when the plan is implemented properly.

Why the Lumara Plan Is the Greatest Section 125 Benefit Plan for Contemporary Employers

While there are numerous Section 125 benefit plan choices available, the Lumara Plan is unique because it’s a real win-win: substantial savings to the business and real, tangible benefits to the employees.

Employer Benefits:

~$600/year per W2 employee savings

No up-front cost to deploy

Lower healthcare claims ($1,400 savings over 3 years)

Quick, fully automated deployment (30–45 days)

Increase in employee retention and job satisfaction

Instant bottom-line positive impact

Employee Benefits:

Increased net pay without raising gross wages

Improved access to healthcare

Meaningful insurance protections

State-of-the-art wellness tools from top healthcare providers

Today, over 40,000 employees are already covered under Group 2 brands such as Lumara — evidence that it’s a reliable and expanding solution.

How Making the Lumara Plan Available Makes You a Modern Employer

Today’s employees aren’t just in it for a paycheck. They want to feel like you care about their health, their loved ones, and their own financial future. Providing a substantial benefit like the Lumara Plan makes you stand out as:

A progressive employer who keeps pace with employees’ needs

An accountable leader concerned with minimizing pointless tax waste

A caregiver who cares about people, not profits

In a nutshell, it’s one of the wisest, simplest ways to bolster your staff — and save considerably on Section 125 taxes.

Real-Life Scenario: Picture the Savings

Suppose you have 150 employees. Adopting the Lumara Plan would save you:

~$90,000/year in payroll taxes

~$210,000 in lowered healthcare claims over three years

Infinite dollars and time saved on hiring, training, and replacing staff

And remember — you provide this for free or without replacing current health insurance coverage.

It’s Easy to Get Started

At Lumara, we keep the implementation quick and simple. Our complete managed solution provides:

Complete compliance

Employee training and enrollment assistance

Smooth payroll integration

Implementation within a month to 45 days

And because there is no additional cost, there is zero risk to start.

Last Words: A Wiser Method of Winning the War for Talent

Hiring and keeping the best shouldn’t be difficult or costly. By providing the Lumara Plan, you build a more satisfying experience for your employees, a healthier bottom line for your business, and a future-proof approach to long-term success. Don’t let waste on taxes and traditional benefits hold you back. Future-proof your workforce strategy with one of the most compliant and benefit-rich plans on the market. Schedule your 10-minute consultation today and find out how much you could save — and how simple it is to get started.