In today’s complex benefits landscape, business owners are constantly searching for ways to offer better employee support without draining budgets. Enter the IRS 125 cafeteria plan, a tax-saving mechanism employers have long used to improve benefits. But while traditional cafeteria plans offer some savings, they fall short of what’s truly possible.

That’s where the Lumara Plan steps in. It doesn’t just leverage a standard IRS cafeteria plan; it fully integrates Section 125 with two additional, fully managed benefit structures: the Preventative Care Management Plan (PCMP) and the Self Insured Medical Reimbursement Plan (SIMRP). Together, they form one of the most comprehensive, compliant, and automated benefit solutions in the market, at no cost to employers or employees.

Let’s break it all down in plain English, what it is, how it works, and why more than 40,000 employees have already joined the Lumara movement.

What Is an IRS Section 125 Cafeteria Plan?

The Basics, And Why the Term “Cafeteria” Is Used

An IRS 125 cafeteria plan is a tax-advantaged benefit program that lets employees choose from a menu of pre-tax benefits, like health insurance, vision, dental, or flexible spending accounts (FSAs). The term “cafeteria” simply refers to the flexibility employees have to select benefits that suit their needs.

What It Offers, But Also What It Lacks

These plans allow employees to pay for certain expenses using pre-tax dollars, which reduces their taxable income. Employers benefit too, as they avoid payroll taxes on those pre-tax dollars.

However, a standard cafeteria plan doesn’t include:

• Fully automated rollout
• Preventative wellness tracking
• Mental health or addiction care
• Family-first support programs

That’s the gap the Lumara Plan fills.

Introducing the Lumara Plan: A Smarter Way to Use Section 125

More Than Just a Section 125 Plan

The Lumara Plan isn’t simply a cafeteria plan, it leverages the core benefits of an IRS Section 125 structure, then layers in a compliant and fully managed PCMP and SIMRP. That’s what makes it different. It’s not just tax-advantaged; it’s transformational.

Here’s what’s included:

• IRS 125 Cafeteria Plan (pre-tax savings)
• Preventative Care Management Plan (PCMP)
• Self-Insured Medical Reimbursement Plan (SIMRP)

Together, this system creates a frictionless, powerful benefits platform for employers and employees alike.

Key Employer Benefits of the Lumara Plan

Save $600 per W2 Employee Annually

Employers using the Lumara Plan save $600 per year per W2 employee, that’s $60,000 annually for a 100-person company. And because it’s integrated with payroll, the savings are immediate and automatic.

Cut Healthcare Costs by 5-10%

By shifting some healthcare costs to preventive, telehealth, and wellness-based care (covered at $0 copay), companies see a 5-10% reduction in overall healthcare expenses, without changing their existing insurance provider.

Fast, Automated Rollout in 30-45 Days

There’s no long onboarding. Lumara handles compliance, administration, employee communication, and payroll integration, hands off for your HR team.

No Out-of-Pocket Cost to Implement

Everything is covered. The plan requires no upfront payments, no setup fees, and no subscriptions. You pay nothing, and you save immediately.

Game-Changing Employee Benefits

Increase Net Pay by $100/Month

Most employees see an average of $100/month in increased net pay. There’s no reduction in take-home pay, just a smarter way to distribute benefits and reduce taxable income.

$0 Copay on Essential Health Services

Employees and their families can access a wide range of care with $0 out-of-pocket cost, including:

• 24/7 telemedicine
• Virtual urgent care
• Preventive screenings
• Lab work
• Mayo Clinic wellness programs

Mental Health, Addiction & Counseling Support

Through the Employee Assistance Program (EAP), the Lumara Plan offers support for:

• Depression & anxiety
• Substance abuse
• Couples & marriage counseling
• Work-life stress

These services are available at no cost to employees or their families.

Spousal and Dependent Coverage

Lumara goes beyond individual coverage. Spouses and dependents receive access to:

• Telemedicine
• Behavioral health
• Nutrition and wellness coaching
• Addiction recovery tools
• Diet & stress management programs

All covered under the same zero-copay model.

Who Can Use the Lumara Plan?

Designed for Employers with 40,000+ Enrolled Employees

The Lumara Plan is ideal for companies seeking enterprise-scale savings and benefit automation. It’s already being used by over 40,000 employees, and adoption is growing fast due to its ease of use and clear ROI.

Industries That Benefit Most

Industries seeing the greatest impact include:

• Healthcare & Hospitals
• Logistics & Transportation
• Manufacturing
• Retail & Franchises
• Educational Institutions

These fields often struggle with benefit fatigue and cost pressure, making Lumara a powerful tool for retention and culture building.

Why the Lumara Plan Is Different From Other Options?

It’s Not Just a Compliance Tool, It’s a Culture Strategy

Most benefit programs are compliance-first and culture-last. The Lumara Plan flips that. It uses benefits as a strategic tool to:

• Build loyalty and trust
• Improve team health outcomes
• Offer meaningful support for employees’ families
• Boost morale and retention

Automated, Compliant, and Turnkey

Many employers shy away from benefit changes due to the fear of IRS non-compliance. That’s why Lumara handles everything:

• IRS documentation
• HIPAA & ERISA compliance
• Payroll integration
• Reporting & auditing

No administrative burden. No risk. Just results.

What Makes Lumara Unique?

Lumara was built around one simple idea: employees deserve better support, and employers deserve better margins.

Every year, companies unknowingly waste thousands of dollars in payroll taxes. Meanwhile, their employees miss out on valuable health benefits.

The Lumara Plan fixes that. Here’s how:

• It requires no changes to existing plans
• It offers real benefits with no out-of-pocket cost
• It provides family-first care without raising premiums

Whether you’re looking to cut costs or improve benefits, or both, Lumara is a smarter, automated way to do it.

Let’s Recap the Benefits of the Lumara Plan

Employer Benefits:

• Save $600/year per employee
• 5-10% reduction in healthcare costs
• Fully automated rollout
• Boost retention and performance
• Zero-cost implementation

Employee Benefits:

• Net pay increase of $100/month
• $0 copay for all virtual care
• Mental health, counseling, and EAP access
• Family-inclusive coverage
• Access to Mayo Clinic tools and health dashboard
• Diet, addiction, and stress support programs

How the Lumara Plan Supports Family Wellness Without Extra Costs?

A Plan That Cares Beyond the Employee

One of the most distinctive advantages of the Lumara Plan is how it extends beyond individual benefits and creates a safety net for the entire family. This isn’t just about covering basic employee needs; it’s about ensuring spouses and dependents receive the same level of high-quality care, all at zero out-of-pocket cost.

From $0 copay telemedicine services for children’s late-night fevers to counseling support for spouses dealing with stress or anxiety, the Lumara Plan ensures families can access timely care without delay or hesitation. Mental health programs, Mayo Clinic-backed wellness tools, and even addiction recovery and couples therapy are available for dependents. This comprehensive structure removes the financial barriers that often prevent families from seeking the help they need.

Employers benefit too. When employees know their loved ones are cared for, they bring more focus, loyalty, and energy to work. That’s the kind of culture modern businesses strive to build: family-first, financially smart, and future-ready. With the Lumara Plan, that vision becomes a reality.

How to Get Started With Lumara?

It only takes a few minutes to see if your company qualifies.

• No pressure
• No obligations
• Just clarity and insight

Talk with a Lumara Plan expert today to learn how much your organization could save.

Book your free 10-minute consultation now.
Find out how the Lumara Plan can boost retention, cut healthcare costs, and help your employees live healthier, happier lives, all without spending a dime.

Schedule your consultation here
Get your free proposal now

Final Thoughts

If you’ve been searching for a compliant, cost-free way to offer standout benefits while saving money, the Lumara Plan is your answer.

It leverages the structure of a standard IRS 125 cafeteria plan, but transforms it into something far more powerful by combining it with fully managed preventative care and reimbursement solutions.