Most employers are looking for ways to offer better benefits without increasing costs. Rising healthcare expenses, retention pressure, and the need for a stronger employee experience make it challenging. Section 125 programs provide real savings for businesses, and more take-home pay for employees. The Lumara Plan delivers family-level benefits at $0 copay without adding cost or changing current insurance. It is simple, effective, and immediately impactful. What many companies don’t realize is that the solution already exists, and it has been available for decades. The real question is whether your workplace is taking full advantage of what section 125 health care plan offer.
A 125 cafeteria health plan is one of the most effective and legally compliant tools for strengthening both sides of the business. Done correctly, it helps employees and employers at the same time. The Lumara Plan is built around this goal, giving workplaces a structured, compliant way to deliver more value without adding new financial burdens or changing their current insurance setup.
If you have never explored how Section 125 programs work or what they could mean for your team, this is the right time. Many companies are leaving meaningful tax savings and powerful family-level benefits on the table without knowing it. This blog explains what your organization could be missing and why adopting the Lumara Plan can create an immediate difference across your workforce.
What Most Workplaces Overlook About Section 125 Programs
A section 125 program allows employees to pay for certain benefits with pre-tax dollars. That single shift creates measurable savings for the business and puts more take-home pay directly in the hands of employees. Companies often assume a program like this requires additional spending, major plan changes, or complicated administration. It does not.
With the right structure, a section 125 health care plan integrates quietly behind the scenes. It works with existing coverage, strengthens overall wellness support, and introduces new family-level services that employees can use every day. The missing piece for most employers is simply awareness. They do not realize the size of the savings or the scope of the benefits available until they see the numbers.
Those numbers are significant. Employers save approximately $600 per year for every W2 employee, and most organizations experience a 5 to 10 percent reduction in healthcare costs. Employees also see a personal improvement with an increase in net pay of about $100 per month. These savings happen automatically once the program is in place, and they continue every year.
The Lumara Plan Gives Employees More Without Cost
While the employer gains are compelling, the employee side of the Lumara Plan is where the long-term value becomes clear. Better take-home pay is a strong starting point, but the program delivers far more than that. Your team receives a full suite of real health and wellness services that support the whole family, all at $0 copay.
Every enrolled employee receives:
- 24/7 Telemedicine and Virtual Care
- Spousal and Dependent Coverage
- Employee Assistance Program (EAP)
- Mental Health and Counseling
- Mayo Clinic Programs
- Addiction Recovery Support
- Couples Counseling and EAP
- Health Vitals Facial Scan Tool
- Diet and Stress Programs
All of these benefits apply to the employee, their spouse, and their dependents at no out-of-pocket cost. Family coverage is one of the most important advantages of the Lumara Plan. Most workplaces wish they could offer strong family benefits, but cannot afford the expense that typically comes with them. Section 125 programs make it possible. Instead of adding cost, they fund themselves through tax efficiency.
This structure gives employees real security and strong support. More than traditional insurance. Peace of mind. Quick access to telemedicine anytime. Mental health care without waiting. Evidence-based wellness tools at their fingertips. Help for stress and family challenges whenever it is needed. When your team can rely on these resources, they feel valued. That sense of care directly strengthens retention and builds loyalty that lasts.
Why Employers Should Care About the Family Experience
Many workplaces focus heavily on the employee when designing benefits. The intention is good, but it overlooks something important. Employees do not make healthcare decisions in isolation. Their spouses and dependents shape how they view the value of their benefits package. When a program provides real support for the entire household, employees feel more stable, more loyal, and more confident that their employer understands their needs.
The Lumara Plan prioritizes families. Healthier households. Calmer mornings. Stronger support. Every service is built to help employees and their loved ones thrive. Quick telemedicine for a spouse, mental health resources for a child, wellness programs for stressed parents all work together to make a real difference. It is peace of mind. It is knowing help is just a call away. It is the kind of care that changes daily life for the better.
Family support pays off for the business, too. Less absenteeism. Lower turnover. Fewer long-term healthcare claims. Early care and preventive tools stop small issues from becoming costly emergencies. When employees feel backed at home and at work, stress drops and loyalty grows. Productivity rises. Morale improves. Everyone benefits when the right support is in place.
No Cost and No Disruption
One of the biggest misunderstandings about adopting a 125 cafeteria health plan is the belief that it will disrupt current coverage or require employees to switch doctors or insurance carriers. The Lumara Plan avoids all of that. It is an enhancement layer that sits alongside your existing setup. You do not replace anything. You are simply adding services that employees can use without changing their routines.
This is why the program works so smoothly for both small and large employers. There is no financial risk, no operational complexity, and no learning curve for employees. Everything is fully managed, compliant with IRS guidelines, and designed to function quietly in the background.
Most importantly, there is no new cost for the business. The savings created by the program cover the services entirely. Employers keep the remainder of the tax savings while employees enjoy higher net pay and expanded benefits.
Why Your Workplace Should Not Wait
The benefits of section 125 programs are not theoretical. They are proven, measurable, and immediate. Every month your workplace goes without a program like the Lumara Plan is a month of missed tax savings, missed employee support, and missed opportunities to strengthen retention.
If you want to give your team more without increasing your budget, this is the most efficient place to start. Your employees gain family-level health support at $0 copay. Your company reduces healthcare costs and saves $600 per W2 employee per year. And your workplace culture improves because people feel supported in a meaningful way.
Final Thoughts
If your workplace has not explored Section 125 programs, you may be missing out. Real savings. Better benefits. Stronger support. One of the most practical and cost-effective ways to upgrade your benefits is right at your fingertips.
With the Lumara Plan, you can give employees more value. Help their families stay healthier. Reduce your own expenses without adding new costs or changing current insurance. It is a simple choice with long-term advantages for everyone involved.
Give your employees more benefits at $0 copay while saving your business money. Enroll in the Lumara Plan today.
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FAQs
What are the disadvantages of a Section 125 plan?
Disadvantages are minimal when managed properly; complexity in setup or administrative tasks may occur, but costs stay low.
What are the benefits of Section 125?
Employers save $600 per employee annually, reduce healthcare costs 5–10%, and employees increase their net pay $100 monthly.
Which of the following is not a benefit of a Section 125 plan?
Non-healthcare perks, unrelated to family coverage, telemedicine, or wellness programs, are not included in standard Section 125 plans.
Are there any downsides to the IRC 125?
Downsides are few; potential administrative setup is minor, but all employee and family benefits remain at $0 copay.
