What Is SIMERP Plan?
Lumara Health offers an innovative benefits solution that helps businesses save money while supporting employee well-being. Their SIMERP (Self-
Insured Medical Expense Reimbursement Plan), combined with a Section 125 Cafeteria Plan, enables employers to reduce payroll taxes and provide employees with tax-free medical expense reimbursements. Fully compliant and easy to implement, Lumara Health’s SIMERP program helps businesses improve retention and offer impactful benefits with no added administrative burden.
The Business Challenge 2
Rising Costs and Limited Benefits :
Many businesses today face increasing healthcare and payroll expenses that strain budgets. Traditional health plans often come with rising premiums and limited tax-advantaged options, leaving employers with few ways to reduce overall costs.
High Turnover and Retention Issues:
Industries with high turnover—such as manufacturing, retail, and healthcare— face ongoing challenges retaining skilled workers. Benefits that don’t effectively improve employee satisfaction or financial health can contribute to turnover and recruitment difficulties.
How SIMERP Works? 3
SIMERP, or Self-Insured Medical Expense Reimbursement Plan, works by allowing employers to reimburse employees for eligible medical expenses using pre-tax dollars. Paired with a Section 125 Cafeteria Plan, SIMERP lets employees reduce their taxable income by setting aside funds for healthcare costs without changing existing health plan coverage. Employers benefit from significant payroll tax savings while employees enjoy tax-free reimbursements for medical expenses. The plan is fully compliant with IRS .
Compliance And Simplicity 4
SIMERP follows all IRS and Department of Labor rules, ensuring the plan meets legal standards. It includes the required documents and testing to avoid discrimination issues. Lumara Health handles the paperwork and administration, so employers don’t need to worry about managing compliance. Because the process is automated and managed externally, HR and payroll teams don’t have extra work. This makes SIMERP easy to add alongside existing health plans without complicating day-to-day operations.
Final Thought 5
SIMERP offers a practical way for businesses to manage rising benefit costs while giving employees more control over their healthcare expenses. It works alongside existing health plans and doesn’t require major changes or added complexity. For companies in highturnover or labor-heavy industries, SIMERP can provide real tax savings and support employee satisfaction. With compliance handled and minimal internal effort needed, it’s a straightforward option worth considering.
