Introduction: Why Section 125 Still Matters in 2025

In today’s competitive employment market, offering a robust, cost-effective health benefits package is essential. But traditional health plans often create a financial burden—either for the employer, the employee, or both. That’s where Section 125 comes in. Better yet, that’s where Elevate+ stands apart.

Elevate+ isn’t just a standard Section 125 health plan. It leverages Section 125 in combination with a Preventative Care Management Plan (PCMP) and a Self Insured Medical Reimbursement Plan (SIMRP) to create one of the most compliant and benefit-rich programs available today. 

Let’s take a closer look at what benefits are included in a modern Section 125 health plan like Elevate+, and how it transforms employee wellness while delivering payroll tax savings for employers.

What Is a Section 125 Health Plan?

A Section 125 plan—also known as a “cafeteria plan”—allows employees to pay certain plan premiums or medical expenses on a pre-tax basis. That means the money used for eligible benefits is deducted from gross income before payroll taxes are calculated. Employers benefit too, since this reduces the total taxable payroll.

However, Elevate+ goes beyond the limitations of a traditional Section 125 plan by integrating two powerful components:

• Preventative Care Management Plan (PCMP)

• Self-Insured Medical Reimbursement Plan (SIMRP)

These additions make Elevate+ more impactful in scope and value than typical Section 125 offerings.

What’s Included in the Elevate+ Section 125-Based Health Plan?

With Elevate+, your company delivers a family-first, high-impact benefit solution—without spending a dime or changing current plan providers.

1. Core Section 125 Pre-Tax Benefits

Employees can continue to deduct premiums and other eligible expenses on a pre-tax basis, reducing their taxable income and increasing their take-home pay by 3–4%, or roughly $100/month.

2. Preventative Care Management Plan (PCMP)

This portion of the plan focuses on employee wellness and early intervention. With PCMP, employees get:

• $0 copay 24/7 Telehealth access to doctors, nurses, and wellness coaches

• Personalized care plans

• Ongoing health tracking

• Support for chronic conditions and preventive care compliance

A strong healthcare policy helps employees stay healthier and enables employers to reduce healthcare claims by $1,400 per employee over three years.

3. Self-Insured Medical Reimbursement Plan (SIMRP)

SIMRP offers employees tax-free reimbursements for qualifying out-of-pocket medical expenses. This includes:

• Doctor visits

• Prescription medications

• Dental and vision services

• Mental health and substance use support

This family-wide coverage also applies to spouses and dependents, significantly expanding the plan’s value and scope.

Elevate+ for Employers: A Smarter Way to Offer Health Benefits

Elevate+ is ideal for employers seeking a competitive edge without increasing operational costs.

Key Employer Benefits:

• Save ~$600 per year per W2 employee (that’s $60,000 annually per 100 employees)

• No out-of-pocket cost to offer the plan

• 4-6 weeks of implementation with the fully automated rollout

• Improved employee performance and reduced absenteeism

• Enhanced retention and workplace loyalty

Unlike traditional plans that come with rising premiums and limited flexibility, Elevate+ is built to deliver immediate bottom-line impact without disrupting existing health plan arrangements.

Elevate+ for Employees: Better Benefits Without Sacrificing Pay

Traditional benefits can feel like a tradeoff—better coverage but lower take-home pay. Not so with Elevate+.

Key Employee Benefits:

• No reduction in net pay

• $100/month increase in take-home pay due to pre-tax savings

• $0 copay for Telehealth and mental health support

• Wellness tools from the Mayo Clinic, including fitness, nutrition, and health dashboards

• Universal Life, Disability, and Critical Illness plan

• Coverage extends to spouses and dependents
  

It’s a family-first solution that prioritizes health and financial stability.

What Makes Elevate+ Different From Traditional Section 125 Plans?

Most cafeteria plans stop at pre-tax deductions. Elevate+ expands that framework by including:

• Active care management (PCMP)

• Tax-free reimbursement of medical expenses (SIMRP)

• No cost to implement or maintain

• Automation and compliance are fully handled by our team
  

This integration helps employers reduce claims, while employees benefit from seamless care and support, all without administrative complexity or added expenses.

Why It’s Time to Rethink Your Employee Health Strategy?

Many employers are still relying on outdated models or believe that expanding benefits comes with a steep price tag. Elevate+ proves that’s no longer true.

Here’s what makes Elevate+ an easy yes:

• Fully compliant and managed by experts

• Zero cost, zero risk—no disruption to your current plan

• More than 40,000 employees are already enrolled and benefiting

• Flexible and scalable to meet your workforce’s needs

It’s not just a benefits package—it’s a strategic business decision to cut tax waste, improve retention, and boost team morale.

Common Questions About Elevate+ and Section 125 Health Plans

• Will I need to change my current plan provider?

 Not at all. Elevate+ works with your existing plan structure.

• How does implementation work?

Our team handles everything. Setup is automated and completed in 30–45 days.

• Is this program compliant?

Absolutely. Elevate+ meets all IRS and DOL regulations with ongoing compliance management.

Final Thoughts: The Future of Employer Benefits Is Here

The Elevate+ plan leverages Section 125 together with a fully managed PCMP and SIMRP, creating one of the most compliant and benefit-rich programs available today. It empowers companies to offer comprehensive medical plans for employees without cost or complexity.

With elevated financial savings, improved wellness access, and family-wide coverage, Elevate+ helps build strong teams through care and loyalty, without spending more.

Ready to Elevate Your Benefits?

Talk with an expert today and see how Elevate+ can work for your team.

• Book your 10-minute consultation

• Get a free proposal today