Health benefits are a big part of how companies take care of their employees. But many businesses still use old health plans that don’t give much choice or save much money. That’s where cafeteria health plans, also known as Section 125 health care plans, can help. These plans let employees use pre-tax money for certain health benefits, which means more savings for both the employee and the employer.
In this blog, we will explain what a Section 125 cafeteria health plan really is, how Harmoni125 works, and why it offers more value than traditional health plans. Everything is explained in simple terms so you can understand how it helps both employers and employees.
What Is a Cafeteria Health Plan?
A cafeteria health plan, also called a Section 125 health care plan, allows employees to choose from a menu of pre-tax benefit options. Instead of being stuck with a one-size-fits-all plan, employees can select what suits their needs, just like picking food in a cafeteria.
Here is how it works:
- Employees can pay for selected benefits with pre-tax dollars
- Employers save on payroll taxes
- Employees get more flexibility and savings
What Makes Harmoni125 Different?
Most Section 125 plans only offer basic pre-tax benefits. But Harmoni125 does much more. It includes Section 125 and adds two powerful features that give real value to both employers and employees.
1. Preventative Care Management Plan (PCMP)
This part focuses on keeping employees healthy before they get sick. It includes:
- 24/7 access to doctors, nurses, and health coaches with $0 copay
- Support for mental health, addiction, and emotional wellness
- Tools from the Mayo Clinic and a personal health dashboard
2. Self-Insured Medical Reimbursement Plan (SIMRP)
beThis lets employees get money back for certain medical costs, making their benefits more useful and flexible.
Together, these make Harmoni125 a smart, complete, and easy health plan that saves money and supports better care.
Benefits for Employers
Harmoni125 is not just about giving better health benefits. It also helps companies save money and take care of their teams in a smart and easy way. Here’s how it helps employers:
- You can save around $1,100 per W2 employee every year. That’s over $110,000 saved if you have 100 employees.
- You don’t need to pay anything from your pocket to start the plan.
- Over time, your company will have fewer insurance claims, leading to a 5–10% reduction in healthcare costs.
- The plan is easy to start and can be ready in just 30 to 45 days.
- Your employees will feel more cared for, which helps them stay longer and work better.
Benefits for Employees
Employees may worry when new health plans are introduced, but with Harmoni125, there is only good news and no downsides.
Here is what employees get with Harmoni125:
- Their take-home pay stays the same, so there is no extra cost for them.
- They can use telehealth services anytime, from anywhere, with $0 copays, even for RX (prescriptions).
- They and their entire family (spouse and dependents) are covered with 12 annual care visits, also at $0 copay.
- They have easy access to mental health support and help for addiction through the EAP.
- They get helpful tools and wellness information from the trusted Mayo Clinic.
- They are covered by Minimal Essential Coverage (MEC) to meet basic health needs.
- They have extra support like Group Term Life Insurance valued at $60–$100 per month, this is very important and comes at no extra cost.
- They get discounts on vision, dental, and prescriptions to save even more.
- They can visit in-person urgent care centers with $0 copays.
Why Compliance Matters?
In today’s world, compliance is critical. Many businesses avoid newer plans fearing IRS or legal issues. Harmoni125 is built to be:
- Fully compliant with IRS rules
- Managed professionally from onboarding to ongoing support
- Backed by tools that meet privacy and security standards
This ensures peace of mind for both employers and employees.
A Better Future with Harmoni125
Many companies still use old-style health plans that do not give much value. These plans are often costly and offer limited benefits. But now, there is a better option. Harmoni125 is a modern, simple, and smart health benefits program. It is not just a Section 125 cafeteria health plan. It also includes a Preventative Care Management Plan (PCMP) and a Self-Insured Medical Reimbursement Plan (SIMRP).
Together, these three parts offer more care, more savings, and more support. Employers can save money and reduce healthcare claims. Employees get helpful benefits like $0 copay telehealth, mental health support, and more. Harmoni125 is a complete solution that works well for businesses of all sizes. It truly helps both employers and employees.
Conclusion: All About The Section 125 Cafeteria Plan
If you want an easy and effective way to improve employee benefits and save money, Harmoni125 is a great choice. It includes a Section 125 health care plan and adds more value through extra care and smart health tools. This plan helps both employers and employees without adding any extra cost. It works well whether you have a small team or a large company. With Harmoni125, you can offer better health support, save on taxes, and keep your team happy and healthy. It’s simple, it’s smart, and it’s built to make a real difference for your business.
Make The Right Choice With The Right Partner!
Want to avail the best benefits for yourself and your employees? Talk to our Specialist with Harmoni Care and get to know more about what Harmoni 125 has to offer.