Today's businesses need to do more than simply provide basic health insurance if they want to make a significant impact. People who work want more than simply health insurance and aid with their medical expenditures. They also seek mental health treatments, preventive care, and support with their medical expenditures. But delivering this much support often costs a lot of money, especially for small and medium-sized businesses.
The Lumara Plan comes in and changes everything.
Lumara is based on a plan for medical reimbursement that is self-insured. It helps businesses provide all-in-one coverage that includes a wide range of health services without having to spend more on payroll or benefits. Lumara is a modern solution that benefits all workers and saves businesses significant money on taxes. It comes with life insurance, access to mental health care, and personalized medical reimbursement.
What Is a Method for Being Paid Back for Medical Expenses on Your Own?
A self-insured medical reimbursement plan (SIMRP) is a mechanism for businesses to pay for workers' qualified medical expenses using pre-tax income that is good for taxes. It follows IRS standards and may be utilized with a Section 125 cafeteria plan to help both the company and the worker save money on taxes.
This is how it works:
Every month or year, employers provide each employee a fixed amount of money to pay for their needs
The employees may use that money to pay for things like co-pays, deductibles, prescriptions, mental health treatments, and other things that their health insurance covers
Before taxes, workers get their reimbursements, so they don't have to pay income tax on the benefit. Employers also don't have to pay payroll taxes on the amount that is reimbursed
Unlike limited insurance plans, a self-insured medical expense reimbursement plan is flexible, cheap, and fully legal. This makes it great for businesses that want modern benefits.
Lumara Offers More Than Just Reimbursements
The Lumara Plan is based on the fundamental structure of a SIMRP and adds more advantages for employees. With Lumara, businesses may provide a robust bundle that includes:
Payments for medical bills
Help with your mental health
Care that stops you from becoming ill
More life insurance coverage
They are all part of the same plan. You don't have to deal with a lot of different providers or cumbersome registration processes. Lumara handles everything, from making the rules and enforcing them to recruiting new workers and operating the firm.
You Can't Select Your Mental Health; You Need It
Employers need to do more than simply provide health insurance since stress levels are increasing, people are being burnt out, and more people need mental health care. The Lumara Plan answers this need directly by covering a wide range of mental health treatments in its self-insured medical reimbursement plan.
Some of the costs that are covered include:
Counseling sessions
Therapy, either in person or online
Psychiatric evaluations
Co-pays for drugs that help with mental health
Help for drug use
This level of coverage is a unique and much-needed benefit in today's workplace since it doesn't require workers to pay taxes or employers to pay payroll taxes. It also increases productivity, reduces absenteeism, and shows that the company cares about the health of its personnel.
Life Insurance Is Covered at No Additional Cost
A lot of the time, small businesses don't consider about life insurance when they plan their benefits because it costs too much or takes too long to set up. The Lumara Plan makes this easy by providing term life insurance coverage in the reimbursement plan itself.
Employees have guaranteed coverage, and often they don't even have to undergo a medical exam. Employers get a benefit that is highly useful to them without having to pay extra.
This element of the life insurance policy makes things better:
Keeping workers' money safe
Safety for the family in case of loss
How hard it is for firms to find and maintain good workers
When workers believe their families are protected, they are more loyal and engaged. This is another benefit that extends beyond saving money.
Compliance, Simplicity, and Automation
It may be challenging to set up conventional benefit plans, and they need a lot of effort to maintain functioning and make sure they are obeying the requirements. With a fully managed solution from Lumara, you don't have to worry about anything.
Employers get:
A Section 125 plan document that respects the regulations and a SIMRP structure that the IRS agrees with
Works well with the payroll systems we have now
Automatic handling of deductions and reimbursements before taxes
You don't have to change your current group insurance plan
Onboarding and talking to staff should be clear and simple to grasp
This hands-off solution helps even tiny businesses with little HR resources provide complete, competitive benefits without having to deal with a lot of paperwork.
Tax Benefits for Both Employees and Employers
Because Lumara's self-insured medical expense reimbursement plan is set up like a cafeteria plan, both employers and employees gain large tax savings:
Employees don't have to pay federal income or FICA taxes on the money they get back
When businesses give money back, they pay less in FUTA and FICA taxes
If an employee receives $3,000 a year in medical expenses paid for by Lumara, that amount is not included in the payroll tax computations. At a 7.65% employer tax savings rate, that's $229.50 saved for each employee each year. The worker also gets to keep more of their money.
It has a tremendous influence on payroll expenditures when you total it up for all of your employees.
All-in-One Coverage That Keeps Customers Happy
To be honest, it's not enough to just provide workers the basics to acquire and maintain them in today's employment market. Workers want benefits that are helpful and assist them with their health, happiness, and money.
The Lumara Plan goes right to the heart of this:
Medical reimbursements decrease the cost of health care for you
Getting mental health treatment might help you feel better and stronger
Having life insurance provides you piece of mind and safety
Tax breaks let you keep more of your money without having to pay more
And for businesses, these benefits are offered in a way that saves time and money and ensures sure everyone respects the laws.
Why Employers Choose Lumara
Lumara offers a flexible, tailored solution for enterprises of all kinds, from small ones with 10 employees to bigger ones with 200. This is why smart employers are switching:
No cost to set up
No modifications to existing health insurance
A self-insured medical reimbursement plan that fulfills IRS rules
A comprehensive setup with expert guidance
Higher staff satisfaction, morale, and retention
You're not just handing out benefits; you're establishing a benefits plan that genuinely works.
A Better Way to Care for Your Team
The Lumara Plan isn't simply another way to save money on benefits; it's a better way to get more out of the money you already spend on your workers. The self-insured medical reimbursement plan from Lumara meets the demands of today's workplaces. It covers everything from medical expenses and mental health services to life insurance.
You cut down on tax waste. People who work receive substantial aid. Everyone wins.
Are you ready to make your benefits package better? The Lumara Plan is the best method to provide your workers comprehensive coverage with no out-of-pocket charges, save your organization money on taxes, and make things simpler for your team. Please get in contact with us right away to learn more.
Give more. Don't spend as much. Do what the regulations say. That's how Lumara works.
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