As more companies look for ways to reduce benefit costs without sacrificing employee care, Section 125 plan benefits and Health Savings Accounts (HSAs) have become increasingly important. But not all Section 125 plans are created equal. In fact, Elevate Benefits offers something more powerful than traditional cafeteria plans.

The Elevate+ plan leverages IRS Section 125 together with a fully managed Preventative Care Management Plan (PCMP) and Self Insured Medical Reimbursement Plan (SIMRP). It’s one of the most compliant and benefit-rich programs available today—and it works seamlessly with HSAs to drive even more value for employers and employees alike.

Let’s explore how it all works.

What Is a Section 125 Plan?

At its core, a Section 125 insurance (sometimes called a “cafeteria plan”) is a payroll arrangement that allows employees to pay for certain benefits with pre-tax dollars. This reduces taxable income for both the employee and the employer.

But the Elevate+ plan is not just a Section 125 plan—it’s much more.

How Elevate+ Goes Beyond Traditional Section 125 Plans?

The Elevate+ plan includes all the traditional section 125 plan benefits, such as:

• Tax savings for both employers and employees
  
• Pre-tax payroll deductions for health coverage and other eligible benefits
  
• Improved access to healthcare services
  

But it also integrates two powerful healthcare components that most cafeteria plans do not offer:

Preventative Care Management Plan (PCMP)

This covers a suite of preventive healthcare services—including telehealth, wellness, and behavioral care—with $0 copay. It improves overall employee health while reducing costly claims.

Self-Insured Medical Reimbursement Plan (SIMRP)

This provides reimbursement for eligible out-of-pocket medical costs, further boosting employee coverage at no cost to the employer.

The result? A turnkey, automated, and compliant benefits structure that works with your existing health plan and payroll system—with no disruption and no out-of-pocket costs.

Elevate+ and Health Savings Accounts (HSAs)

Many employers and employees are already using Health Savings Accounts to save for medical expenses. But did you know that Elevate+ can help you get even more value out of an HSA?

How It Works Together

• Section 125 payroll deductions lower your taxable income before HSA contributions, which means more room to save tax-free.
  
• PCMP and SIMRP services reduce out-of-pocket costs, helping employees preserve their HSA balances for long-term needs.
  
• No disruption to existing HDHPs (High Deductible Health Plans), which are required for HSA eligibility.
  

Put simply, Elevate+ complements your HSA strategy while making your overall benefits package stronger and more tax-efficient.

Key Benefits of Elevate+ for Employers

Elevate+ is designed for large organizations (40,000+ employees) that want to increase retention, reduce costs, and enhance their culture—without adding complexity.

Here’s what employers gain:

• Save ~$600/year per W2 employee
  That’s $60,000 saved for every 100 employees—pure payroll tax savings.
  
• Zero out-of-pocket cost
  No new budget line required.
  
• Reduced claims and health costs
  Employers typically see $1,400 in reduced claims per employee over 3 years.
  
• Quick, automated rollout
  Implementation takes just 4-6 weeks, with full compliance support.
  
• Stronger retention and performance
  Better benefits mean stronger teams and lower turnover.
  
• Immediate bottom-line impact
  Payroll tax savings start from day one—no waiting period.
  

Key Benefits of Elevate+ for Employees

Most cafeteria plans offer savings, but Elevate+ is designed to actually enhance take-home pay and wellbeing at the same time.

Here’s how:

• 3–4% increase in net paycheck (~$100/month)
  Thanks to pre-tax savings and reimbursements.
  
• $0 copay for 24/7 Telehealth, mental health, and wellness services
  Including doctors, nurses, counseling, and coaching.
  
• Access to Mayo Clinic’s tools and digital health dashboard
  A trusted partner in employee health and wellness.
  
• Universal Life, Disability, and Critical Illness plan
  Fully covered under the plan—no added deductions.
  
• Spouse and dependent coverage options
  Family-first benefits that extend to loved ones.
  

Already, more than 40,000 employees are enrolled in the Elevate+ plan—and that number is growing fast.

Why Elevate+ Is a Better Section 125 Solution?

Many brokers offer section 125 plan benefits as a checkbox item. But Elevate Benefits was created to help companies deliver more value to their teams, without increasing payroll costs or disrupting what they already have in place.

We’ve built a compliant Section 125 solution that also:

• Reduces claims through proactive care
  
• Enhances employee well-being
  
• Works with existing plans and HRIS systems
  
• Doesn’t affect employee net take-home pay
  
• Requires zero investment from employers
  

It’s a smarter way to manage benefits in a competitive job market—and a proven way to build culture without spending more.

Common Questions About Elevate+ and HSAs

Can Elevate+ be used alongside an HSA?

Yes! Because the Elevate+ plan does not conflict with high-deductible health plans (HDHPs), employees remain fully eligible for HSAs.

Will employees lose HSA eligibility with Elevate+?

No. The plan is structured to preserve HSA compatibility while enhancing available benefits.

How does Elevate+ impact Section 125 payroll deductions?

It amplifies the benefits. Because deductions are pre-tax, both employers and employees see more savings—and those savings fuel better coverage and higher net pay.

Final Thoughts

The Elevate+ plan is not just a modern twist on a cafeteria plan—it’s a revolution in employee benefits.

By combining Section 125, PCMP, and SIMRP, Elevate+:

• Increases net pay for employees
  
• Reduces taxes and claims for employers
  
• Enhances HSA strategies
  
• Delivers compliance and automation
  
• Supports families and improves workplace culture
  

If your business is still offering a basic cafeteria plan, it’s time to level up.

Book Your 10-Minute Consultation

Ready to see how Elevate+ can enhance your benefits strategy and reduce tax waste?
Book your free consultation today. No cost. No disruption. Just smart benefits.