For employers today, it’s a challenging tightrope to walk—providing significant employee benefits without pushing overhead too far. For many firms, health care costs and retaining employees rank as two of the most challenging issues. That’s where Harmoni Care’s innovative Harmoni125 solution provides genuine traction.
Harmoni125 is not your typical Section 125 plan. Rather, it uses pre tax Section 125 deductions in a fully managed, multi-level strategy that includes a Preventative Care Management Plan (PCMP) and a Self-Insured Medical Reimbursement Plan (SIMRP). The end result? A compliant, automated, and zero-cost method by which employers can upgrade employee benefits and boost their bottom line.
In this blog, we’ll break down exactly how Section 125 pre-tax deductions work, why Harmoni125 is different, and what kind of results employers and employees can expect from this behind-the-scenes benefit program.
What Are Section 125 Pre-Tax Deductions?
Let’s begin with the fundamentals. A Section 125 plan—also referred to as a “cafeteria plan”—is a tax-favored program that enables employees to use pre-tax dollars to pay for specific benefits. Typical examples are medical, dental, and vision insurance premiums.
By deducting these amounts prior to taxes being levied on wages, employers and employees alike lower their taxable income. That translates to less money paid to the IRS and more kept in-house.
But this is the twist: old-school Section 125 plans are frequently undervalued, poorly promoted, and do not take full advantage of tax benefits. That’s where Harmoni125 enters.
How Harmoni125 Revolutionizes Section 125 Pre-Tax Deductions
Harmoni125 does more than traditional pre tax Section 125 options. It offers the tax-saving pillar of Section 125 pre tax deductions, plus two aggressive health-directed strategies:
A fully managed Preventative Care Management Plan (PCMP), providing employees with access to wellness tools, virtual care, and health coaching.
A Self-Insured Medical Reimbursement Plan (SIMRP) reimburses employees for certain wellness-related medical expenses.
Combined, these three elements form one of the most compliant and benefit-rich plans on the market today, without adding to employer costs or altering existing insurance coverage.
Why Employers Choose Harmoni125
For employers, Harmoni125 offers quantifiable financial relief with no trade-offs.
Here’s what you can expect:
- Save $600–$800 per employee annually
That’s approximately $68,000 in net tax savings each year for every 100 employees—without modifying your insurance plan or additional administrative expense.
- No out-of-pocket implementation cost
Harmoni125 is completely funded by redirected payroll tax savings—so no budget approval is required.
- Average $1,400 decrease in healthcare claims over 3 years
With enhanced preventative care, your employees remain healthier, taking less of a toll on current health plans.
- 30–45 day implementation
We take care of setup, onboarding, and compliance—everything goes on quietly behind the scenes.
- Improve employee retention and performance
Employees feel cared for with expanded benefits that safeguard their health, finances, and families.
Over 30,000 employees are already covered by Harmoni125. Employers notice the effects not only on paper—but in morale, retention, and everyday satisfaction.
What Employees Gain from Harmoni125
Harmoni125 is employee-centered. The plan offers real-world, everyday value without altering take-home pay.
Here’s what’s included:
- No reduction in net paycheck
Pre-tax Section 125 deductions are tailored so employees don’t experience any reduction in pay—but they do receive substantial coverage.
- $0 copay 24/7 telehealth access
Employees and their loved ones can speak with doctors, nurses, and health coaches any time they need to.
- Mental health, addiction recovery, and counseling support
All at no additional cost, because wellness is more than just physical health.
- Mayo Clinic wellness resources and individualized health dashboard
Workers can own their health with class-leading advice and instant feedback.
- Integrated financial safeguarding
Universal Life, Disability, and Critical Illness protection—and upgrades for spouses and dependents.
For employees, that means more value, more assistance, and more sense of security—without subtracting a single thing from their existing benefits or payroll.
Why This Isn’t a Standard Section 125 Plan
It’s worth noting: Harmoni125 is not merely a Section 125 plan—it’s far more.
Yes, it covers pre tax Section 125 deductions. But it’s the distinctive layering of the PCMP and SIMRP that creates a richer, more complete value. When these three pieces come together, Harmoni125 provides something standard plans can’t—active wellness, automatic reimbursement, and an entirely compliant tax approach that benefits both sides of the payroll calculation.
It’s an unseen layer of protection that fortifies your benefits without adding more work, expense, or confusion.
Designed for Businesses That Can Do Better
We believe in balance at Harmoni Care. Harmoni125 demonstrates that philosophy by balancing employee needs with the reality of business. We recognize that most businesses want to do better for their employees—but they’re constrained by narrow margins and increasing costs.
That’s where our strategy excels.
Harmoni125 is
- Completely automated
- Budget-neutral (paid for exclusively through tax savings)
- 100% IRS-approved
- Completely undetectable to your current benefits
There’s no disruption, no vendor change, and no risk. Just tangible, measurable results that benefit your people and your profit.
Key Takeaways
Harmoni125 is not just a tax strategy—it’s a silent revolution in the way today’s companies provide value to their employees.
Let’s review what sets it apart:
- Leverages pre tax Section 125 deductions for tax-efficient payroll
- Comes with a fully managed Preventative Care Management Plan (PCMP)
- Includes a Self-Insured Medical Reimbursement Plan (SIMRP)
- Doesn’t cost anything to deploy or maintain
- Saves an average of ~$680/year per employee
- Offers 24/7 telehealth, wellness tools, and financial protection for your employees
- Assists with decreasing long-term healthcare claims
- Increases employee retention and satisfaction
- All with zero impact on your existing plan
No matter the size of your organization, whether 100 employees or 10,000, Harmoni125 slips silently into the background and provides a better benefits experience for all parties involved.
Get Ready to See What Harmoni125 Can Do
You don’t have to overhaul your benefits to make them better. With Harmoni125, it’s possible to introduce meaningful change without creating complexity. This is about balance—about delivering care without compromise, and support without cost.
Book your 10-minute consultation today and discover how much your business can save, while giving employees more of what they actually need.