Today, giving employees good benefits is something every business needs to do. It helps keep teams happy, healthy, and more likely to stay. But for many companies, offering these benefits has become too costly and confusing. Rising healthcare prices and changing rules make it hard to find a plan that truly works for everyone. That is where smarter options come in, like using a Section 125 health insurance plan. It can help save money while giving employees the care they need.
In this blog, we will explain what a Section 125 plan is, how it works, and why it matters.
What Is Section 125 Health Insurance?
Section 125 of the IRS Code allows employees to pay a lot of benefits by using pre-tax dollars. Known as a Section 125 cafeteria plan, it gives employees a menu of benefit options and helps reduce their taxable income. This structure offers dual advantages as employers save on payroll taxes, and at the same time employees get more value from their earnings.
However, Harmoni125 goes a step further. This program includes Section 125 as a core component but enhances it with two advanced healthcare strategies: PCMP and SIMRP.
What Makes Harmoni125 Different?
Unlike other Section 125 plans available in the market, Harmoni125 is a fully managed solution designed to deliver good financial and wellness outcomes at both ends. It is not just a tax-savings tool. It is a comprehensive employee benefits strategy.
Harmoni125 includes the following things:
- Section 125 Plan: Enables pre-tax contributions for health benefits
- Preventative Care Management Plan (PCMP): Focuses on health education, wellness coaching, and early intervention
- Self-Insured Medical Reimbursement Plan (SIMRP): Offers additional, tax-free reimbursements for eligible medical expenses
By combining these three components, Harmoni125 becomes more than just a benefits plan. It is a smarter way to support your team and strengthen your business.
Key Benefits for Employers
Harmoni125 is helping employers see real savings and better results, both right away and over time. Companies using this plan notice big improvements in cost, care, and employee happiness. Here is what employers are experiencing:
- Employers save about $1,100 each year for every full-time W2 employee
- A company with 100 employees can save around $110,000 every year
- There are no out-of-pocket costs to start the program
- Healthcare claims go down by an average of 5–10%
- The setup is quick and smooth, taking only 30 to 45 days
- Employees stay longer and perform better at work
- The business sees an immediate improvement in overall savings and results
Key Benefits for Employees
Employees also get real value from Harmoni125, and the best part is that their take-home pay stays the same. They get more support without giving up any of their earnings. Here is what employees receive:
- No change in net pay; employees keep all the money they earn.
- 24/7 access to doctors, nurses, and health coaches with $0 copay.
- Full mental health support and help with addiction and emotional wellness through the Employee Assistance Program (EAP).
- Access to Mayo Clinic wellness tools and their own health dashboard.
- Group Term Life Insurance (valued at $60–$100/month), this is very important and included in the plan.
- Extra support like disability and critical illness protection.
- Spouse and dependent coverage is included with 12 annual care visits and $0 copays on everything, including prescriptions, vision, and dental discounts.
Why Choose Harmoni125 from Harmoni Care?
At Harmoni Care, employee benefits should be easy, clever, and cost-effective. Harmoni125 is designed to benefit employers and employees in a way that makes sense. Our scheme provides your staff with excellent care while reducing taxes and remaining completely compliant with all regulations. We sort everything for you, so there is no added hassle or stress. You can focus on running your business while we take care of the benefits side every step of the way.
Conclusion: Offer Smart Benefits With Section 125 Health Insurance
Picking the right way to give employee benefits can feel tricky, but it does not have to be. When you use a plan that includes Section 125 Health Insurance and a few extra helpful tools, it works better for everyone. Employers can save money without spending extra, and employees get good care without losing any of their pay. It is a simple way to help people feel better and more supported at work. When your team feels cared for, they do their best. In the end, it is a win for the people and a win for the business, too.
Ready to Learn More?
Discover how Harmoni125 can help you save costs and offer richer employee benefits without changing take-home pay. Get started with Harmonicare today, or request a customized proposal today to see what smarter, compliant benefits can do for your business.