When employers think about tax-efficient benefits, an HSA 125 cafeteria plan is often part of the conversation. But what many companies don’t realize is that pairing that structure with a fully managed solution, like the Lumara Plan, can unlock far greater value.
Lumara plan helps employers take advantage of a smarter, more compliant approach: a fully managed benefit structure that leverages Section 125, an HSA, and an integrated, triple-layered solution that includes a Preventative Care Management Plan (PCMP) and a Self-Insured Medical Reimbursement Plan (SIMRP).
It’s not just about checking boxes on compliance. It’s about unlocking triple tax savings, improving employee satisfaction, and protecting your bottom line—all without changing your current health plan or asking your employees to spend more.
Understanding the Basics: HSA + 125 Cafeteria Plan
An HSA 125 cafeteria plan allows employees to contribute to their Health Savings Account using pre-tax dollars. That alone can deliver significant savings by reducing taxable income for both employees and employers.
But most traditional Section 125 plans stop there. The Lumara Plan goes much further.
What Makes the Lumara Plan Different?
The Lumara Plan includes Section 125 but expands on it with two powerful additions:
- A Preventative Care Management Plan (PCMP) that provides 24/7 access to telehealth, wellness coaching, and Mayo Clinic-backed tools
- A Self-Insured Medical Reimbursement Plan (SIMRP) that offers supplemental health coverage such as Critical Illness, Disability, and Universal Life
Together, these components create one of the most compliant and benefit-rich programs available—and they’re fully managed, requiring no extra effort from your HR team.
The Triple Tax Advantage for Employers
One of the most overlooked opportunities in benefits planning is the amount of money wasted on payroll taxes. Employers pay 7.65% in FICA taxes on every eligible W-2 dollar. When employees make pre-tax contributions to an HSA through a 125 plan, it reduces that tax liability.
Now, layer that with the Lumara Plan’s built-in tax strategy, and the savings grow exponentially:
- ~$600/year in payroll tax savings per W-2 employee
- $60,000 in savings for every 100 employees
- No additional spending required
- Implementation in just 30–45 days
In short, the more employees you have, the more you save. And because this isn’t a reimbursement program or post-tax deduction, there’s no change to existing plans or take-home pay.
Triple Tax Savings: What It Looks Like in Action
Here’s how the Lumara Plan creates three layers of tax savings:
Employee Payroll Tax Savings:
Employees make pre-tax contributions to their HSAs, reducing their taxable income.
Employer Payroll Tax Savings:
Employers save on FICA and other payroll taxes because of reduced taxable wages.
Additional Non-Taxable Benefits Through SIMRP:
Supplemental medical reimbursements and health benefits under SIMRP are non-taxable, providing employees with added value without increasing your taxable compensation base.
This creates a win-win: employees receive richer benefits, and employers see immediate margin improvements—all without adding complexity.
Real Benefits for Employees—Without Trade-Offs
Too often, benefit upgrades come with a catch: higher premiums, less take-home pay, or changes to existing coverage. The Lumara Plan avoids all of that.
Employee Advantages Include:
- 3–4% net paycheck increase (approximately $100/month)
- $0 copay Telehealth, including access to licensed doctors, mental health professionals, and health coaching
- Access to Mayo Clinic digital wellness tools and a personal health dashboard
- Universal Life, Disability, and Critical Illness insurance
- Enhanced coverage for spouses and dependents
All this comes with no change to current health insurance and no out-of-pocket cost for the employee or employer.
It’s Not Just Theory—It’s Proven
The Lumara Plan isn’t experimental. It’s already delivering value for tens of thousands of employees. In fact, more than 40,000 employees are currently enrolled, with more joining every month.
Employers across industries are realizing that you don’t need to spend more to offer better. You just need a smarter approach.
Why Modern Employers Are Rethinking Benefits
Today’s workforce expects more. They want mental health support, wellness tools, and flexible options that support their families. At the same time, rising healthcare costs and talent shortages are forcing employers to think creatively.
The Lumara Plan meets both needs by delivering better benefits without added burden. It’s fully managed, fully compliant, and integrates seamlessly with your existing payroll and benefits infrastructure.
- No new vendors to manage
- No increase in budget
- No disruption to existing plans
Just smarter, hands-off support that elevates both your team and your bottom line.
Frequently Asked Questions (FAQ)
1. How is this different from a standard HSA or Section 125 plan?
Most traditional cafeteria plans only allow basic pre-tax deductions. The Lumara Plan goes further by combining Section 125 with a Preventative Care Management Plan (PCMP) and a Self-Insured Medical Reimbursement Plan (SIMRP), enabling greater tax savings and added benefits. It’s a fully managed, turnkey structure—not something you’d get from a basic payroll setup.
2. We already offer strong benefits—will this still make a difference?
Absolutely. Lumara doesn’t replace your current benefits—it enhances them. The plan runs quietly alongside what you already offer, adding wellness tools, tax-free perks, and saving your business around $600 per employee per year, all without reducing take-home pay or changing existing coverage.
3. How much time or effort will this take to implement?
Very little. Implementation is fully managed by Lumara’s team and typically takes 30–45 days from start to finish. You won’t need to overhaul any systems, and your HR or payroll staff won’t be burdened with extra work.
4. Is there any cost or financial risk to my company?
No. The Lumara Plan involves no out-of-pocket cost, no disruption to your current benefits, and no risk to your bottom line. All compliance, claims, and reporting are handled by us, so you get the savings without added liability.
Conclusion: A Smarter Way to Save and Support
The Lumara Plan is more than just a Section 125 cafeteria plan. It’s a fully integrated, tax-optimized solution that combines the power of HSAs, PCMP, and a Self-Insured Medical Reimbursement Plan (SIMRP)—delivering triple tax savings and stronger benefits with zero added cost.
Employers cut unnecessary payroll tax waste, employees receive richer, tax-free health benefits, and no one has to change their current coverage or take-home pay. It’s a modern, hands-off approach to benefits that’s already working for over 40,000 employees—and it could work for your team too.
Your Next Step: Get a Proposal in Minutes
If your company is looking to stop wasting money on payroll taxes and start offering more meaningful support to employees, the Lumara Plan is the answer.
It’s time to stop leaving savings on the table. Join the thousands of employers already leveraging this next-generation Section 125 alternative to drive real results.
