As a CFO, every financial decision you make plays a role in shaping your company’s profitability, resilience, and employee satisfaction. Tax planning, in particular, is one of the most powerful levers for unlocking hidden savings and operational efficiency. While most finance leaders are laser-focused on deductions, credits, and depreciation strategies, there’s one area that’s often overlooked — the medical plan.

At Lumara, we believe your tax strategy shouldn’t stop at traditional playbooks. That’s where the Lumara Plan comes in — a smarter, fully compliant, and cost-free solution that merges Section 125 with a Preventive Care Management Plan (PCMP) and a Self Insured Medical Reimbursement Plan (SIMRP) to create one of the most benefit-rich programs available. And yes — it’s all automated, fast to implement, and directly impacts your bottom line.

In this blog, we’ll break down why CFOs should prioritize section 125 health care plan in their tax planning and how the Lumara Plan offers game-changing tax benefits for both employers and employees.

Rethinking the Role of Medical Plans in Financial Strategy

Most employers offer health benefits because they care about employee well-being. But very few realize the strategic financial upside that comes from structuring those benefits differently — especially when it comes to payroll tax savings.

When a medical plan is designed to leverage Section 125 together with a fully managed PCMP and SIMRP, it can:

• Create thousands of dollars in tax savings per employee
  
• Provide meaningful benefits to your team without any change to take-home pay
  
• Reduce long-term health plan claims
  
• Offer zero out-of-pocket implementation for the company

The key is finding a plan that goes beyond traditional cafeteria-style benefits and instead integrates tax-advantaged healthcare reimbursements into your payroll structure.

That’s exactly what the Lumara Plan was built to do.

What Makes the Lumara Plan Different?

The Lumara Plan is not your typical Section 125 plan. It includes Section 125, but it’s enhanced through:

• Preventive Care Management Plan (PCMP)

This ensures employees receive preventive screenings and health assessments through a structured, fully managed care model — directly improving wellness and early detection.

• Self-Insured Medical Reimbursement Plan (SIMRP)

This allows employers to reimburse employees for certain health-related expenses tax-free, creating savings for both parties — without adding risk or cost.

• Automated Compliance & Rollout

With a fast, 30–45 day setup, the Lumara Plan is fully managed, highly compliant, and integrates seamlessly with your existing payroll and benefits infrastructure.

Together, these elements unlock the true power of your medical benefit strategy — especially for Group 2 employers with 40,000–70,000+ enrolled employees.

CFO Benefits: Why It Matters to Your Bottom Line?

If you’re evaluating options for reducing operational costs or maximizing tax efficiency, the Lumara Plan should be front and center in your toolkit. Here’s why:

$600+ in Payroll Tax Savings Per Employee

On average, employers save $600/year per W2, which adds up fast:

• $60,000/year in savings for every 100 employees
  
• $600,000/year for a 1,000-person company
  

These are real, recurring savings — not temporary rebates or credits.

Zero Out-of-Pocket Cost

Unlike traditional wellness programs that require buy-in or administrative overhead, the Lumara Plan is cost-free to implement. No budget approval battles. No disruption.

Lower Claims, Higher Retention

With built-in wellness tools from Mayo Clinic, mental health support, and 24/7 telehealth access, employees are healthier — which means fewer claims, less absenteeism, and higher performance.

Faster Implementation, Smarter ROI

With full automation and white-glove support, you can get the program running in under two months, with immediate tax impact.

Stronger Recruiting & Retention

In a competitive hiring market, offering tax-free medical benefits with no change to take-home pay is a game-changer for attracting and retaining top talent.

Employee Benefits: Real Perks That Drive Loyalty

The Lumara Plan doesn’t just help the company save — it’s also designed to create a better experience for your team. Here’s what employees get:

• 3–4% increase in net paycheck (~$100/month) with no change in gross pay
  
• $0 copay for 24/7 Telehealth services, including doctors, nurses, and mental health support
  
• Access to Mayo Clinic wellness tools and personal health dashboard
  
• Universal Life, Disability, and Critical Illness coverage
  
• Spouse and dependent coverage options
  
• Zero change to the existing plan or plan structure
  

Put simply, employees get more without paying more.

The Strategic Tax Advantage: Section 125 Health Care Plan

When CFOs think of tax-saving opportunities, they often go straight to depreciation schedules, R&D credits, or expense deductions. But here’s a secret: your payroll structure is the largest source of overlooked tax savings.

By structuring your benefits through the Lumara Plan, you:

• Reduce your FICA and FUTA liabilities
  
• Minimize taxable income exposure
  
• Avoid new costs or compliance burdens
  

This isn’t just a theoretical benefit. More than 40,000–70,000+ employees are already enrolled in the Lumara Plan, and employers are saving millions in payroll taxes annually.

Why You Can’t Afford to Wait?

Every month you delay implementation is another month you’re overpaying taxes — and missing a low-effort, high-impact opportunity to support your team.

The Lumara Plan was built on a simple but powerful idea: employees deserve better support, and employers deserve better margins. It’s a rare win-win, where CFOs can reduce costs without cutting benefits, and employees get meaningful wellness support without dipping into their paychecks.

There’s no cost to explore it. Just smart planning.

Ready to Take the Next Step?

If you’re a CFO aiming to maximize the advantages of your pre tax benefits section 125 plan, there’s no better time to take action than now.

Get a free proposal today and discover how the Lumara Plan can unlock tax savings, boost retention, and create a healthier, more engaged workforce — all without impacting your current benefits structure.