The SIMRP Explained In The Video below
Program Highlights
Significant Tax Savings ~$550/Employee Per Year
Lower Major Medical Utilization & Premiums
Enhanced EAP (employee assistance program)
$0 Net Cost to the Company or Employees
What is THE SIMRP?
A well-structured SIMRP stands as a powerful tool for employers seeking to provide comprehensive benefits to their workforce while maintaining cost efficiency.
A SIMRP is an ADA, ERISA, HIPAA, and IRS-compliant employee benefit intended to create a tax and healthcare cost savings for employers and employees alike.
How Is THE SIMRP Structured?
The SIMRP combines two key components: a Section 125 eligible Voluntary Wellness Program and a Section 105(b) Self-Insured Medical Reimbursement Plan.
This structure focuses on preventative health and specific chronic conditions, enabling tax-free reimbursements for qualified medical expenses. It’s compliant with IRS, ERISA, ADA, and HIPAA standards, offering employers immediate payroll tax savings and giving employees access to affordable healthcare benefits without changing their net take-home pay.
How Is THE SIMRP Structured?
The SIMRP combines two key components: a Section 125 eligible Voluntary Wellness Program and a Section 105(b) Self-Insured Medical Reimbursement Plan.
This structure focuses on preventative health and specific chronic conditions, enabling tax-free reimbursements for qualified medical expenses. It’s compliant with IRS, ERISA, ADA, and HIPAA standards, offering employers immediate payroll tax savings and giving employees access to affordable healthcare benefits without changing their net take-home pay.
Employer Benefits
No Cost to Your Company
All Program Costs are Funded by Tax Savings. Expected Employer Savings is Net All Program Cost.
Reduced HR Burden
Plan Administration is Provided as Well as a CPA Team, and TPA for Billing Ease.
Major Medical Savings
Reduction in Major Medical Premiums. Average of $1,400 per Employee per Year over 3 years.
Reduction in Major Medical Premiums. Average of $1,400 per Employee Per Year Over 3 Years.
Tax Savings
Most Companies See an Average Savings of $550/Employee per Year (net fees). This is Not an End-of-Year Write-Off - See Savings in the First Quarter.
Improved Productivity
Offer an Enhanced Benefits and Employee Assistance Program to Reward Loyalty, Reduce Absenteeism, Lower Turnover, & Attract Quality Talent.
Employees Benefits
Wellness Benefits
The SIMRP’s wellness benefits offer employees extensive support through preventative services designed to reduce healthcare costs. Employees can lower out-of-pocket expenses by using $0 copay services within the wellness plan, including counseling, health coaching, and virtual care.
Participation in these services not only mitigates future diagnoses and illnesses but also promotes overall well-being. Additionally, employees can access supplemental benefits like accident and critical illness coverage, enhancing their health and financial security without impacting their take-home pay.
Supplemental Benefits
Critical Illness
Pays a lump-sum cash benefit when diagnosed with a covered critical illness; wellness & recurrence.
Accident
Pays a benefit for a covered accident, injury & treatment received; includes 24-hour & off-the-job coverage options to chose from.
Disability
Pays monthly cash benefit for a covered sickness or off-the-job injury that leaves insured totally or partially disabled, helping alleviate living expenses.
Life
Provides a lump- sum cash benefit to help pay final expenses, bills & more; Term, Whole Life & Universal Life options.
Cancer
Pays cash benefits for a covered cancer diagnosis & other specified diseases; the benefit can help pay for treatment, surgery, & more.
Hospital Indemnity
Pays a benefit for a covered accident, injury & treatment received; includes 24-hour & off-the-job coverage options to chose from.
What do the IRS and CPA's Say?
Generally, medical care reimbursements paid for an employee under an employer’s self-insured medical reimbursement plan aren’t wages and aren’t subject to social security, Medicare, and FUTA taxes, or income tax withholding.
— IRS Pub 15, 2024 Employer’s Tax Guide
The ACA increased incentives for employers to adopt self-insured healthcare programs. More focus is being placed on consumer based approaches with an emphasis on preventative care. One approach is to establish a SIMRP program.
— The CPA Journal
(Opportunities for Tax and Cost Savings)
The program saves employers money due to a reduction in FICA taxes paid because the amount elected by the employee to be contributed to the plan is not considered to be wages and therefore not taxable for Social Security purposes.
— The CPA Journal
(Opportunities for Tax and Cost Savings)
The platform can provide additional savings through a reduction in paid time off as a result of healthier employees.
What are the eligibility requirements to participate in The SIMRP?
10 Employees: The company must have 10 employees
W2: Employees must be W2
$22,000: Employees must earn $22,000/year
Health Insurance: Employees must have access to health insurance either through an employer-sponsored plan, a spouse, parents, or through the marketplace
Medicare | Medicaid: Employees cannot be enrolled in Medicare or Medicaid.
The SIMRP Represents A Compliant Preventative Care Program Distinct From Typical Wellness Programs.
The Distinction Is Crucial As It Involves Compliance With IRS Regulations And The Affordable Care Act (ACA).
the SIMRP
The SIMRP, combined with a Section 125 Plan and a comprehensive plan document, establishes a compliant framework for reimbursing premiums for 213(d) eligible benefits.
Structured as an ADA, ERISA, HIPAA, and IRS-compliant model, the SIMRP is designed to achieve cost savings while ensuring legal integrity. It stands apart from non-compliant wellness programs, focusing on genuine preventive care and wellness through a legally sound structure that strictly adheres to IRS and ACA regulations to foster employee health and financial wellness.
the SIMRP
The SIMRP, combined with a Section 125 Plan and a comprehensive plan document, establishes a compliant framework for reimbursing premiums for 213(d) eligible benefits.
Structured as an ADA, ERISA, HIPAA, and IRS-compliant model, the SIMRP is designed to achieve cost savings while ensuring legal integrity. It stands apart from non-compliant wellness programs, focusing on genuine preventive care and wellness through a legally sound structure that strictly adheres to IRS and ACA regulations to foster employee health and financial wellness.
the SIMRP - INFINITE SAVING PLAN
The SIMRP is designed as a continuous, scalable savings model, offering employers sustainable tax benefits while enhancing employee health and financial well-being. By leveraging both Section 125 and Section 105(b) structures, the plan enables tax-free reimbursements for essential health services, reducing major medical expenses and improving care accessibility.
With projected tax savings of approximately $550 per employee annually and enhanced wellness options, SIMRP delivers a compliant, no-net-cost solution that aligns with IRS and ACA standards, creating lasting financial advantages for businesses and employees alike.
