A Complete Overview of Self-Insured Medical Expense Reimbursement Plans for Businesses

Introduction

For many employers, rising healthcare costs and heavy payroll tax burdens are straining budgets. Businesses are looking for smarter ways to offer meaningful benefits while controlling expenses. This is where a selfinsured medical expense reimbursement plan (SIMERP) from Lumara Health delivers a powerful solution.

Key Benefits of a Self-Insured Medical Expense Reimbursement Plan

Enhanced Employee Benefits at No Cost

Employees gain access to tax-free reimbursements for medical expenses, which increases their effective compensation and satisfaction.

Zero Out-of-Pocket Costs for Employers

The plan is designed to be selffunded through tax savings, meaning employers can implement it with no new budget allocation.

Reduced Employee Turnover

Businesses using Lumara Health’s plan have seen up to 60% lower turnover because employees value the additional benefit

Easy Administration

Lumara Health handles compliance, setup, and ongoing support so employers can focus on their business not paperwork.

Advantages of a Self-Insured Medical Expense Reimbursement Plan

Every dollar pre-taxed for employee medical reimbursements reduces the employer’s payroll tax burden.

Employees enrolled in the plan enjoy tax-free reimbursements for eligible medical expenses like copays, prescriptions, and even dental or vision costs.

Employee retention is a growing challenge across industries.

Unlike traditional benefits that sometimes see low employee engagement, Lumara Health’s plan drives 30% higher participation rates due to its simplicity and clear employee value.