Providing healthcare that is affordable and complies with healthcare benefits has become a top concern among employers. With healthcare costs on the rise and greater pressure to retain top talent, companies are seeking ways to cut costs, enhance the health and well-being of employees, and provide meaningful value without impacting take-home pay.
One key vehicle to balance this equation is Section 125 of the IRS Code, where employers can provide pre-tax health benefits. Not only do these benefits save employees money on taxes, they also cut the employer’s payroll tax burden. Not all plans are equal, though. Today’s top solutions extend beyond minimum Section 125 designs by combining wellness, reimbursement, and compliance more sophisticatedly.
In this blog, we’ll explain pre-tax health benefits, how Section 125 works, and what employers should know to choose a modern, compliant, and impactful plan.
What Are Pre-Tax Health Benefits?
Pre-tax health benefits enable employees to spend some of their pay before tax to cover medical care. That reduces their tax obligations, so they save taxes. Employers also save due to reduced payroll taxes. These benefits come under guidelines of Section 125 of the IRS Code, under which flexible benefit programs are allowed where employees can opt for plans that suit them.
But now, some plans do more than the bare essentials. Harmoni125 is one of them. It adheres to Section 125 but with additional assistance, such as a Preventative Care Management Plan and a Self-Insured Medical Reimbursement Plan. This translates to improved health coverage, increased savings, and good compliance for employers and employees.
Understanding Section 125: What It Really Means
Section 125 is a part of the U.S. tax code that enables employers to offer certain types of employee benefits on a pre-tax basis. Common benefits include:
- Health insurance premiums
- Flexible Spending Accounts (FSAs)
- Dependent care assistance
But it’s important to understand: Harmoni125 does not stop at Section 125. It includes Section 125 as part of a broader, smarter benefits strategy. That’s what sets it apart.
Employer Benefits: Immediate Bottom-Line Impact
Harmoni125 helps employers save money and support their teams in a big way. It’s a practical solution that gives real results without adding any extra costs. Here’s what employers can expect when they choose Harmoni125:
- Employers can save $1,100 per W2 employee every year, which adds up to $110,000 in savings for 100 employees.
- There is no out-of-pocket cost to get started with the program.
- Over time, companies usually see a 5–10% reduction in healthcare costs from fewer insurance claims.
- The setup is quick and easy. Most companies can start using the plan within 30 to 45 days.
- It helps boost employee retention, morale, and performance by offering better health support.
- The program creates an immediate positive impact on the company’s bottom line starting from Day 1.
Employee Benefits: Better Care, Same Pay
Harmoni125 gives employees better healthcare benefits without reducing their take-home pay. It’s designed to support their health, well-being, and peace of mind. Here’s what employees receive through the program:
- There is no change in their take-home pay, so their monthly income stays the same.
- They get 24/7 telemedicine and virtual care with $0 copays, including for RX (prescriptions).
- Their family (spouse and dependents) also gets covered with 12 annual care visits at $0 copay.
- They have full access to mental health and counseling services, including help with addiction, through the Employee Assistance Program (EAP).
- They can use trusted Mayo Clinic tools and wellness programs to take better care of their health.
- The plan includes Minimal Essential Coverage (MEC) to meet key health requirements.
- They are provided with Group Term Life Insurance valued at $60–$100 per month, which is very important and included at no extra cost.
- They also get discounts on vision, dental, and prescriptions for more savings.
- They can visit in-person urgent care centers and still pay $0 in copays.
Why Harmoni125 Is the Smarter Section 125 Solution?
Traditional Section 125 health insurance plans offer tax advantages, but they often stop there. Harmoni125 transforms the model by creating a program that is:
- More compliant with IRS and healthcare guidelines
- More impactful on employee wellness and employer savings
- More flexible, with personalized care and broader coverage
- Easier to implement, requiring no upfront investment
In a landscape filled with one-size-fits-all plans, Harmoni125 is tailored, proven, and ready to scale.
Conclusion: Get Better Pre-Tax Health Benefits With Section 125
Picking the right health benefits should not be confusing. Harmoni125 makes it simple and helpful for everyone. It uses the rules from Section 125 but adds more support for health and savings. Employers save money and see happier, healthier teams. Employees get better care without losing any pay. There is no extra cost, and it’s easy to get started. In a time when healthcare can feel hard to understand, this kind of plan makes life easier for both sides. It’s a smart, honest way to give real value to people at work.
Ready to Take the Next Step?
Ready to learn more? Get Started with Harmonicare Today. Talk with an expert who can help you understand how Harmoni125 can work for your business. Get a clear plan that fits your needs without any hassle.