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What Exactly is Section 125 Plan

Basically, a Section 125 plan allows employers to offer employees a menu of benefits they can pick from, much like selecting the best off a menu that fits your lifestyle. But Elevate+ does a heck of a lot more with it.

While the plan has the IRS-endorsed Section 125 framework, it has two powerful healthcare components:

  • Preventative Care Management Program (PCMP)
  • Self-Insured Medical Reimbursement Plan (SIMRP)

This combination allows employees to receive care in advance, stay healthy, and enjoy greater coverage, all with $0 copays, including prescriptions.

So while it’s not just a tax-favored setup, Elevate+ turns Section 125 plan benefits into a whole family protection and wellness package.

Who Can Benefit From a Section 125 Plan?

Almost any employer can gain from an IRS Code 125 plan, from tiny government departments to huge private enterprises. For businesses, it’s a cost-saving and retention-improving tool. For employees, it’s a good night’s sleep. The Elevate+ plan ensures that both sides win without anyone spending out of their pocket.

Employers Gain:

  • Around $1,100/year savings per W2 employee
  • 5–10% reduction in healthcare costs
  • Immediate bottom-line boost
  • Enhanced team loyalty and retention

Employees Gain:

  • 24/7 telemedicine and virtual care at no cost
  • Family coverage (spouse and children) up to 12 visits annually
  • Mental health & counseling support
  • Mayo Clinic wellness resources for ongoing care
  • Group Term Life Insurance valued at $60–$100/month
  • Vision, dental, and prescription discounts
  • In-person urgent care visits at a $0 copay
It’s family care, not just employee care.

Benefits of Section 125 Plans for Employers and Employees

When companies implement an IRS Code Section 125 Plan with Elevate+, a message is sent: We’re not just interested in your work; we also care about your well-being.

This is how that concern sets in on tangible outcomes:

For Employers:

  • A healthier, more engaged staff means fewer absences and claims.
  • Every dollar saved can be invested in growth, new hires, or staff development.
  • The automated plan structure means there's no administrative load or back-end expense.
  • Implementation is finished in a mere 30–45 days.

For Employees:

  • No reduction in net salary.
  • Enjoy the perks of healthcare plans that support prevention and the long-term health of patients.
  • Complete security for the entire family, physical health, mental health, and finances.
  • Total coverage of healthcare, telemedicine, and even life insurance, which brings peace of mind.
The result is a healthier workforce, improved employee retention, and a more vibrant culture.

What Expenses Can a Section 125 Plan Cover?

An IRS Section 125 plan can be flexible and inclusive of various medical treatments and wellness activities. With Elevate+, it is not only limited to regular benefits but also keeps you in the loop through the Preventative Care Management Program.

What Are the Covered Areas?

Among the covered areas are:

  • Wellness visits and routine check-ups
  • Preventive diagnostic testing and screenings
  • Mental health and behavioral counseling
  • Family and dependent care visits
  • Prescription medications (with no copays)
  • Eye and dental care
  • Chronic disease management
  • Telehealth and virtual care access platform 
To put it in simple words, Elevate+ keeps the employees in good health rather than allowing the sickness to come and take over, which would still be compliant with full section 125 plan requirements.

Setting Up a Section 125 Plan 

Implementing a Section 125 plan does not need to be a difficult task. Elevate Benefits makes it easy for the employer by making the whole process efficient, automated, and free of any troubles.

What is usually the process

Step 1: Assessment

Elevate+ performs an assessment of your company structure, size of the workforce, and existing benefits.

Step 2: Customization

The plan is designed in such a way that it includes both Preventative Care Management and Self-Insured Medical Reimbursement features.

Step 3: Implementation

Employees are enrolled without any hassles through seamless payroll integration.

Step 4: Compliance & Support

All taken care of under IRS and DOL regulations, with easy reporting and employee support.

Most importantly, no more paperwork and vendors for the employers; everything is managed by Elevate Benefits.

What Is Included in a Section 125 Plan?

The Elevate+ package combines wellness, preventive care, and family protection into one. The following is included in addition to Section 125 benefits:
  • Preventative Care Management Program (PCMP) - Access to screening, health check-ups, and telehealth services available 24 hours a day, 7 days a week.
  • Self-Insured Medical Reimbursement Plan (SIMRP) - Reimbursement for specific medical expenses not covered by regular insurance.
  • Mental Health & EAP Services – Counseling and rehabilitation services.
  • Group Term Life Insurance – Financial protection of up to $100/month per employee.
  • Spouse & Dependent Coverage – Family health protection at no extra charge.
  • Wellness Tools from Mayo Clinic – Evidence-based health and lifestyle resources.

All of these characteristics operate within the umbrella of a Section 125 plan, remaining fully compliant but focused on the well-being of employees, offering pre tax deductions.

(A brief detour: Section 125 plans are sometimes compared to cafeteria plans, as both enable employees to choose their benefits. The distinction is form and flexibility; 125 cafeteria plan benefits are simply one option under the umbrella of general Section 125 status.)

Bottomline: Section 125 Plans as the Future of Workforce Wellbeing

If you’re still managing traditional healthcare packages, you’re leaving value on the table. With Elevate+, Section 125 isn’t just a compliance checkbox; it’s a strategic advantage.

This program blends the best parts of preventive health plans and wellness management into one seamless system. Employers save money, employees gain protection, and families get real care, all with $0 copays.

Presently, the number of Elevate+ participants is higher than the tens of thousands, and employers have started to report measurable improvements within just a few months.

Hence, if you desire a more active workforce that is healthier and more involved but at no extra cost, now is the time to rethink your benefits strategy. Schedule a free consultation with Elevate Benefits today and find out how a Section 125 plan can transform employee care in 2025.

Frequently Asked Questions

What are the advantages of a Section 125 IRS Code Plan?
There are flexible health and wellness choices, tasteful cost reductions for the employers, and workers’ satisfaction at its peak.
The allowances can be for telehealth, life insurance, preventive care visits, and mental health services among others.
Cafeteria plans are a kind of Section 125 plans where one can select the benefits from a list mentioned.
Private companies or public agencies can do it through administrators like Elevate Benefits.