Running a small business comes with no shortage of challenges, including managing costs, keeping your team happy, and staying compliant with changing regulations. But what if there was a way to improve employee benefits, cut healthcare costs, and even increase take-home pay, all without adding new expenses? That’s exactly what the Lumara Plan does.
Built for growing teams, the Lumara Plan leverages a Section 125 plan for small businesses together with a Preventative Care Management Plan (PCMP) and a Self-Insured Medical Reimbursement Plan (SIMRP). The result is one of the most compliant, automated, and benefit-rich programs available, designed to help employers and employees save more, effortlessly.
Understanding the Lumara Plan
The Lumara Plan isn’t your typical health benefit. It’s a fully managed wellness and tax-savings solution that helps small business owners create a stronger, healthier, and more loyal team, all while improving margins.
It works by integrating:
- Section 125 (Cafeteria Plan): Lets employees set aside pre-tax dollars for 125 cafeteria health plan, lowering both payroll taxes and taxable income.
- Preventative Care Management Plan (PCMP): Provides ongoing access to preventive health, mental wellness, and lifestyle improvement tools.
- Self-Insured Medical Reimbursement Plan (SIMRP): Offers tax-free reimbursements for qualified health services and wellness care.
Together, these three elements create a comprehensive, compliant system that enhances financial and physical wellness for everyone involved.
Step 1: Learn How Section 125 Works
Before setting up your plan, it’s important to understand what Section 125 really is, and isn’t.
A Section 125 plan for small business is not a standalone health plan. Instead, it’s a framework defined by the IRS that allows employees to choose between taxable cash and qualified benefits, all while reducing payroll taxes for employers.
When integrated into the Lumara Plan, Section 125 becomes the engine that powers pre-tax savings and improved cash flow. Employers can save around $600 per year per W2 employee, while employees enjoy higher net pay and better coverage; with no change to take-home pay and no out-of-pocket costs.
Step 2: Combine Section 125 with PCMP and SIMRP
Here’s where Lumara really stands apart. Most “cafeteria plans” stop at tax savings, but the Lumara Plan takes it a step further by layering in preventive care and medical reimbursement.
This means employees gain:
- 24/7 Telemedicine & Virtual Care at $0 copay
- Mental Health & Counseling Support
- Spousal and Dependent Coverage
- Employee Assistance Programs (EAP)
- Addiction Recovery & Couples Counseling
- Mayo Clinic Wellness Programs
- Diet, Stress & Lifestyle Support
- Health Vitals Facial Scan Tool
These benefits are available for the employee and their family, all at $0 copay.
From an employer’s perspective, this integration also reduces healthcare claims by 5-10%, boosts retention, and improves productivity through healthier, more supported employees.
Step 3: Understand the Cost and ROI
One of the biggest misconceptions small business owners have is that advanced benefit programs come with high costs. The Lumara Plan eliminates that barrier.
It’s a no-cost program, meaning employers can implement it without any out-of-pocket expenses. Implementation takes just 30-45 days, and from there, savings start immediately.
Employers save:
- ~$600 per year per W2 employee
- 5-10% on healthcare expenses
Employees gain:
- ~3-4% increase in net paycheck (~$100 per month)
- Access to advanced wellness and mental health services
- Comprehensive family coverage with no copays
That’s what makes the Lumara Plan such a powerful tool for small business owners; it builds a stronger culture and bottom line simultaneously.
Step 4: Set Up and Enroll
Setting up the Lumara Plan is simple and fully managed. The Lumara team handles everything from compliance documentation to employee education.
Here’s the typical process:
- Discovery Call: Discuss your workforce size, benefits structure, and current costs.
- Custom Plan Design: Lumara builds a compliant plan tailored to your company.
- Implementation: The plan launches within 30–45 days with no disruption to current benefits.
- Employee Enrollment: Your team learns how to access and use their new benefits.
- Ongoing Management: Lumara automates compliance, reporting, and support, year-round.
You don’t need to manage new vendors, handle paperwork, or navigate IRS rules. Everything is taken care of for you.
Step 5: Measure the Impact
Within the first few months, most businesses see clear results, from lower healthcare claims to improved morale and retention.
Employers benefit from:
- Lower overall benefit costs
- Reduced administrative work
- Improved team engagement and satisfaction
- Enhanced compliance protection
Employees benefit from:
- 24/7 access to care for themselves and their families
- $0 copays for essential services
- Better mental and physical health
- A real increase in their take-home pay
It’s not just a plan, it’s a smarter way to run a people-first organization.
Step 6: Stay Compliant; Without Doing the Work
The Lumara Plan is built for compliance. It automatically aligns with IRS, DOL, and ACA regulations, ensuring every part of the Section 125 framework is properly managed.
All pre-tax contributions, benefit elections, and reporting are tracked digitally, meaning you never have to worry about audits or filing errors. Lumara’s compliance automation guarantees your plan remains fully legal, efficient, and up to date.
That’s the kind of peace of mind every small business owner deserves.
Why Choose Lumara Health?
Lumara Health was built around a simple idea: employees deserve better support, and employers deserve better margins.
Every year, small businesses unknowingly overpay in payroll taxes while employees miss out on valuable, tax-free health benefits. The Lumara Plan fixes that with an integrated, fully managed solution that:
- Requires no change to your existing insurance
- Creates meaningful savings immediately
- Enhances employee well-being and loyalty
- Delivers a family-first approach to workplace benefits
It’s not just another section 125 health care plan; it’s the future of modern benefits management for small businesses.
Conclusion
Starting a Section 125 plan may sound complicated, but with the Lumara Plan, it’s simpler than ever. You get a turnkey, compliant, and zero-cost program that helps both your business and your team thrive.
Your employees gain access to $0 copay telemedicine, mental health support, and family coverage, while your business saves money every year, without lifting a finger.
That’s the Lumara difference; smart benefits that care for your people and protect your profits.
Book your 10-minute consultation today to see how easily you can get started with the Lumara Plan.
FAQs
1. What is the key employee concentration test for the cafeteria plan?
It ensures that highly compensated employees don’t disproportionately benefit from the plan compared to others.
2. What is the employer cafeteria plan?
It’s a tax-saving arrangement allowing employers to offer pre-tax benefits under Section 125.
3. What are employee contributions through a cafeteria plan?
Employees contribute pre-tax dollars toward eligible benefits, reducing taxable income.
4. What is the penalty for a Section 125 violation?
Violations may trigger IRS penalties, tax liabilities, and plan disqualification.
5. Is the Lumara Plan compliant?
Yes, it’s fully automated and IRS, DOL, and ACA compliant.
