When you’re running a business, offering strong health plan benefits for employees can feel like walking a tightrope, balancing meaningful coverage with skyrocketing costs. But there’s a lesser-known tool in the IRS Code that can change that: Section 125. And when paired with the right strategy, it can unlock big savings for your company and your team.
At Harmoni Care, we’ve built Harmoni125 to harness the power of Section 125 in a modern, fully managed way that’s tailored to today’s workforce. If you’re evaluating your business health plans here’s what you need to know.
What Is Section 125?
Section 125 of the IRS Code allows employees to pay for health-related expenses using pre-tax dollars. This reduces their taxable income, and simultaneously lowers your payroll tax obligations.
The classic setup is called a cafeteria plan, where employees choose from a menu of pre-tax benefit options like insurance premiums, dental, vision, and more.
Why Section 125 Matters More Than Ever
Healthcare has always been one of the biggest expenses for businesses, and the pressure keeps mounting. Premiums rise year after year, employees expect more comprehensive coverage, and employers are caught in the middle, trying to balance affordability with competitiveness. That’s where Section 125 comes in.
By letting employees set aside pre-tax dollars for health-related expenses, Section 125 reduces their taxable income and lowers employer payroll taxes at the same time. It’s one of the few strategies that directly benefits both sides of the table. The challenge, however, is that most companies either don’t know about Section 125 or treat it as a check-the-box cafeteria plan.
Harmoni125 changes that. Instead of a basic, underutilized benefit, Harmoni Care has turned Section 125 into a fully managed solution designed for today’s workforce. With added components like Preventative Care Management, SIMRP, and $0 copay coverage, it evolves beyond compliance into a true business advantage.
The numbers tell the story: employers save an average of $1,100 per W-2 annually, healthcare costs drop 5–10%, and implementation takes just 30–45 days. Employees get round-the-clock telemedicine, urgent care, mental health resources, and family coverage, all without paying more from their paycheck.
In today’s competitive talent market, that balance is crucial. A strong benefits package isn’t just about healthcare, it’s about retention, morale, and productivity. Harmoni125 ensures employees feel valued while businesses protect their bottom line.
Section 125 may be decades old, but Harmoni Care’s approach makes it modern, efficient, and hassle-free. For companies looking to control costs without cutting corners, this is the smartest way forward.
What Makes Harmoni125 Different?
Unlike a standard cafeteria plan, Harmoni125 includes:
- Preventative Care Management Plan (PCMP)
- Specialized Insurance Medical Reimbursement Plan (SIMRP)
- Full Section 125 compliance, documentation & rollout
Together, these elements create a high-impact, cost-saving benefit model that delivers $0 copay family coverage and holistic health support.
Business Benefits: Real Numbers, Real Results
If you’re a business owner, HR leader, or decision-maker seeking smarter healthcare solutions, here’s a clear look at everything Harmoni125 brings to the table for your organization and your workforce:
- Save $1,100 per year per W-2 employee
- 5–10% reduction in total healthcare costs
- Implementation in just 30–45 days
- $1,400 in claims savings over 3 years
- Boost retention, performance, and morale
- No out-of-pocket cost to the business
That’s why Harmoni125 is quickly becoming the smarter standard in business health plans.
Employee Benefits That Go Beyond Basics
Employees enrolled in Harmoni125 experience better health outcomes and stronger peace of mind, with no increase in their payroll deductions.
They receive:
- $0 Copay on All Covered Services
- 24/7 Telemedicine & In-person Urgent Care Access
- Spouse & Dependent Coverage (12 Annual Visits)
- RX, Dental, Vision, and Mental Health Benefits
- Addiction Recovery, EAP, and Counseling
- Mayo Clinic Health Tools & Wellness Dashboard
- Minimal Essential Coverage (MEC)
- Group Term Life Insurance valued at $60–$100/month
All of this, fully managed by Harmoni Care with zero hassle to your team.
Why Harmoni Care?
More than 30,000 employees are already covered by Harmoni125. We don’t just provide benefits, we provide a complete solution that enhances your workforce while protecting your bottom line.
With full documentation, IRS compliance, and hands-free onboarding, you get a system that works from Day 1, no new vendors, no extra fees, no chaos.
Make Your Business Health Plan Work Smarter
The truth is, traditional health benefits are outdated. Harmoni125 blends tax strategy, employee wellness, and operational simplicity into one powerful system, built on Section 125 plan and optimized for modern workforces.
Get a Free Proposal today and see how Harmoni125 delivers real value, fast.