Why The HSA 125 Cafeteria Plan Is An Essential Benefit For Your Business?

In the modern competitive environment, business leaders are always in search of smarter and leaner methods to provide true value to their employees without the added costs. One of the most successful tactics innovative companies are adopting is the HSA 125 cafeteria plan, particularly when combined with innovative benefit designs such as the Lumara Plan.

Here at Lumara Health, we know that employers and employees are frequently trapped in an archaic benefits loop—paying too much in taxes, forfeiting health savings, and burdened with increasing medical costs. That’s where the Lumara Plan steps in: a fully managed, no-cost solution that uses a Section 125 plan, merged with a Preventative Care Management Plan (PCMP) and a Self-Insured Medical Reimbursement Plan (SIMRP). Together, they provide one of the most compliant, value-rich platforms on the market for companies wishing to increase their bottom line while providing outstanding value to employees.

What Is The HSA 125 Cafeteria Plan?

Your HSA 125 plan isn’t your everyday benefit. It’s a tax-advantaged program that benefits employees by the ability to cover eligible medical costs at the cost of pre-tax dollars, which means more take-home pay and tax savings for you.

But Lumara takes it a step further.

The Lumara Plan enhances the traditional structure by combining the HSA 125 plan with two additional components:

PCMP: Offers employees round-the-clock access to preventative healthcare tools and coaching.
SIMRP: Delivers supplemental reimbursement options that expand coverage without affecting existing insurance.

This trio of benefits operates within the framework of a compliant Section 125 plan, creating a truly modern benefits solution.

Why The Lumara Plan Is Built For Business Growth

Let’s break down the real-world impact of integrating the Lumara Plan into your employee benefits strategy.

For Employers: Substantial Financial Advantages

Save approximately $600 per W2 employee per year
That’s $60,000 saved annually for every 100 employees on payroll, without spending a dime to implement.
Zero out-of-pocket cost
The program is cost-free for employers, with no hidden fees or unexpected administrative burdens.
Fast, automated rollout
You can go from enrollment to full implementation in 30–45 days with Lumara’s seamless onboarding support.
Reduced healthcare claims
Businesses experience average claim reductions of $1,400 over three years, easing insurance burdens and improving cost predictability.
Boosted retention and performance
When employees feel supported, they stay longer and perform better. It’s that simple.
Immediate bottom-line impact
The payroll tax savings start immediately, delivering measurable ROI within the first payroll cycle.

For Employees: More Pay, More Benefits, No Trade-Offs

One of the most powerful elements of the HSA 125 cafeteria plan under the Lumara Plan is that employees enjoy enhanced health benefits without reducing take-home pay.

3–4% increase in net paycheck
On average, employees receive about $100 more in monthly pay without sacrificing their existing benefits.
$0 copay for Telehealth, wellness, and mental health
Employees and their families get unlimited access to healthcare professionals and wellness services at no extra cost.
Access to Mayo Clinic health tools and dashboards
Advanced health support tools keep employees informed, motivated, and proactive about their well-being.
Universal Life, Disability, and Critical Illness coverage
These essential coverages are included, giving peace of mind beyond the basic offerings of traditional plans.
Spouse and dependent coverage
Employees’ families are part of the package, enhancing satisfaction and loyalty.

With more than 40,000 employees already enrolled in the Lumara Plan, this program is gaining traction with companies that want to modernize their benefits while remaining fiscally responsible.

How The Lumara Plan Leverages Section 125

A common misconception is that the Lumara Plan is a Section 125 plan. In reality, it includes the Section 125 plan as one part of a broader strategy. This distinction is key.

By embedding the Section 125 into a more dynamic and comprehensive system, Lumara offers:

Stronger compliance
Our fully managed solution is legally vetted, IRS-compliant, and designed to withstand regulatory scrutiny.
A hands-off approach for HR teams
With automated administration and support, no heavy lifting is required on your end.
Custom-fit implementation
Whether you have 50 or 5,000 employees, the Lumara Plan scales to meet your business’s unique needs.

Solving Tax Waste And Unlocking Real Value

Every year, businesses unknowingly lose thousands of dollars to payroll tax waste. Simultaneously, employees are forced to navigate rising healthcare costs with limited support.

The HSA 125 cafeteria plan, when part of the Lumara Plan, fixes both problems in one seamless system:

Employers save thousands on taxes.
Employees gain access to tax-free benefits, improved coverage, and better health outcomes.
No one pays more. No one loses take-home pay. Everyone wins.

A Smarter Strategy For Today’s Employers

What makes the Lumara Plan different? It’s not just about tax savings or better benefits. It’s about transforming how businesses think about employee support.

No disruption to existing health insurance
You don’t have to overhaul your plans to benefit from Lumara’s system.
No increased costs
Employers pay nothing out of pocket to implement this solution.
No compromise
Employees retain their pay while gaining access to enhanced health and financial benefits.

Ready to Join Thousands of Forward-Thinking Businesses?

The time to act is now. The Lumara Plan isn’t just another HSA 125 plan—it’s a future-proof, automated, and benefit-rich program that reshapes how employers care for their teams.

With over 40,000 employees enrolled, Lumara is leading the charge in modern, compliant, cost-effective benefits. Whether you’re looking to reduce tax waste, strengthen your talent retention strategy, or simply offer better support to your team, this plan delivers real value without the burden.

Final Thought

In an economy where every dollar matters, both for you and your employees, the HSA 125 plan, specifically through the Lumara Plan, is more than just a benefit. It’s a strategic advantage.

Why settle for old systems that cost more and deliver less? With Lumara Health, you get a fully managed, automated solution that leverages a Section 125 plan in combination with PCMP and SIMRP, providing unmatched value to your business and your people.