Introduction

Managing employee benefits can feel overwhelming—especially when it comes to plans involving tax codes and compliance. But what if you could offer your team a benefits package that boosts take-home pay, enhances care access, and helps your company save thousands, all without adding to your workload?

That’s exactly what the Lumara Plan delivers. It leverages Section 125 cafeteria plan rules—alongside a fully managed Preventative Care Management Plan (PCMP) and a Self-Insured Medical Reimbursement Plan (SIMRP)—to provide one of the most compliant, benefit-rich programs available today.

In this blog, we’ll walk you through how to handle employee enrollment in a Section 125 cafeteria plan—especially when it’s enhanced through Lumara’s unique offering.

What Is a Section 125 Cafeteria Plan?

Before diving into enrollment, let’s simplify the concept.

A Section 125 cafeteria plan is a tax-advantaged benefits program that allows employees to choose between receiving taxable income or non-taxable benefits like health plan, dependent care, or health savings account (HSA) contributions.

The Lumara Plan includes Section 125, but it’s far more than a basic cafeteria plan. It layers in:

• A Preventative Care Management Plan (PCMP) that gives employees access to $0 copay telehealth and wellness resources.
  
• A Self Insured Medical Reimbursement Plan (SIMRP) that delivers supplemental benefits such as critical illness, disability, and family coverage.
  

In short: This is not your average cafeteria plan—it’s a fully managed, compliance-first solution designed for real impact.

Step-by-Step: How to Handle Enrollment in the Lumara Plan?

Enrolling employees into a Section 125 employee cafeteria plan doesn’t have to be complicated, especially when you’re working with Lumara’s streamlined implementation process. Here’s what the process typically looks like.

• Understand Eligibility Criteria

Before enrollment begins, ensure employees meet basic eligibility standards. Generally:

• They must be full-time, W-2 employees.
  
• They may need to work a minimum number of hours per week (as defined by your policy).
  

With the Lumara Plan, eligibility review is automated, and the rollout typically takes just 4-6 weeks.

• Communicate the Benefits Clearly

Employee buy-in starts with understanding. When your team sees what they gain, participation goes up—and so does satisfaction.

Lumara’s key employee benefits:

• 3–4% increase in net pay (~$100/month on average)
  
• $0 copay telehealth, mental health, and wellness care
  
• Mayo Clinic wellness tools and dashboards
  
• Supplemental coverage (Universal Life, Disability, Critical Illness)
  
• Family coverage options for spouses and dependents
  

The best part? No change to their current plan or take-home pay structure.

Lumara offers done-for-you communication, including emails, videos, FAQs, and one-on-one support.

• Conduct an Open Enrollment Period

Like traditional benefits, Section 125 cafeteria plans require an open enrollment period—typically once a year. This is when eligible employees can opt in.

• Lumara handles this digitally with automated onboarding and digital consent.
  
• All documentation is secure and compliant.
  
• Employees can complete enrollment in minutes, right from their phone or computer.
  

• Leverage Educational Tools and Personal Support

Even with a simplified process, some employees may have questions. That’s where Lumara’s employee education resources come in:

• Live Q&A sessions and webinars
  
• Mobile-friendly explainer videos
  
• In-language support for diverse teams
  

This not only boosts enrollment rates but also improves trust and transparency.

• Monitor, Manage, and Adjust

Once enrollment is complete, you’ll want to keep tabs on participation and results. Luckily, Lumara provides:

• Employer dashboards with real-time enrollment data
  
• Insights on savings, participation rates, and employee engagement
  
• Ongoing compliance management
  

All of this is handled with no extra work from your HR or finance teams.

Why the Lumara Plan Stands Out?

Let’s recap what makes Lumara different:

• Fully Managed & Automated

From onboarding to reporting, Lumara’s system handles the heavy lifting.

• No Out-of-Pocket Costs

Employers pay nothing to implement the Lumara Plan—and the savings speak for themselves.

• Real ROI for Employers

  • Save ~$600/year per W2 ($60K per 100 employees)
    
  • Reduce claims by $1,400 over three years
    
  • Boost retention and morale
    
  • Immediate bottom-line impact
    

• Powerful Employee Perks

  • More take-home pay
    
  • Better access to care and wellness tools
    
  • Enhanced financial protection for families
    

More than 30,000 employees are already enrolled in the Lumara Plan.

Common Questions About Enrollment

Can employees opt out?

Yes, participation in the Lumara Plan is voluntary. However, most employees choose to participate once they understand the value.

What if an employee leaves?

Coverage is adjusted automatically, and any related reporting is handled by Lumara to ensure compliance and accuracy.

Do we need to change our current benefits provider?

No! The Lumara Plan is additive and works alongside your existing health plans. There’s no disruption, no overlap.

A Smarter Way to Support Your Workforce

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 their employees miss out on valuable, tax-free health benefits. The Lumara Plan helps fix that.

By leveraging Section 125, along with a PCMP and SIMRP, Lumara delivers a smarter, fully compliant way to:

• Build a more loyal, resilient team
  
• Provide meaningful care without spending more
  
• Enhance company culture with minimal effort

Ready to Simplify Enrollment and Boost Benefits?

Don’t let complexity hold your company back from offering a better, smarter benefits experience.

Book your 10-minute consultation
Get a free proposal today
Talk with a Lumara Plan expert: (888) 456-7890