Implementing a Section 125 pre tax plan can unlock transformative savings for employers and employees. Yet too many organizations stick with basic cafeteria plans that offer only modest relief. Health Sphere’s Core360 program leverages Section 125 alongside a fully managed Preventative Care Management Plan (PCMP) and Self Insured Medical Reimbursement Plan (SIMRP), creating a seamlessly compliant, cost-free solution that supercharges your benefits while slashing tax waste.
Below, we explain exactly how Core360 works, why it’s not “just” another Section 125 plan, and how you can start capturing real Section 125 savings today.
What Is a Section 125 Pre Tax Plan?
A section 125 plan—sometimes known as a “cafeteria plan”—allows employees to redirect eligible expenses (such as health insurance premiums) from gross pay before taxes are calculated. This reduces taxable income, generating immediate payroll and income tax relief:
- Employers save on their share of payroll taxes.
- Employees enjoy higher take-home pay without changing gross wages.
However, standalone flexible benefits often leave substantial value on the table. Without additional preventive care and reimbursement layers, neither party captures the full potential of tax-efficient design.
Why Core360 Goes Beyond Traditional Section 125
Core360 isn’t merely a deduction mechanism. It leverages Section 125 together with a fully managed PCMP and SIMRP, producing one of the most benefit-rich programs on the market:
- Section 125 Foundation: Pre-tax deductions reduce taxable wages.
- PCMP Integration: Proactive health coaching, telehealth access, and wellness tools drive down claims.
- SIMRP Addition: Self-insured reimbursements cover copays, deductibles, and other qualifying expenses—they are fully funded without employee outlays.
Combining these elements, Core360 unlocks deeper Section 125 tax savings and nurtures healthier, more engaged employees.
How Core360 Works: A Step-by-Step Overview
1. Analysis & Custom Proposal
Health Sphere reviews your W-2 roster and benefit structure to quantify potential savings. You receive a clear, data-driven proposal showing:
- Estimated Section 125 savings per employee
- Projected reduction in healthcare claims (average $1,400 saved over three years)
- Total ROI and implementation timeline
2. Seamless Implementation
Once approved, Core360 goes live in just 30–45 days. There is:
- No disruption to existing health plans
- Zero out-of-pocket cost for the employer
- Fully automated payroll integration
3. Employee Enrollment & Education
Health Sphere manages all communications, webinars, and one-on-one support to drive enrollment. More than 40,000 employees are already participating in Core360, reflecting our proven engagement strategies.
4. Ongoing Compliance & Administration
We keep your plan fully IRS-compliant, handling annual testing, reporting, and regulatory updates so that you can focus on your business, not paperwork.
Employer Benefits: Immediate Bottom-Line Impact
By implementing Core360, organizations typically realize:
- Save ~$600 per W-2 employee per year ($60,000 per 100 employees)
- Reduced healthcare claims by an average of $1,400 over three years
- No out-of-pocket cost or additional administrative burden
- 30–45 day rollout, fully automated
- Boosted retention & performance, driven by richer benefits
- Immediate bottom-line impact via payroll and income tax reductions
These figures stem from our integrated model, in which the Section 125 pre-tax plan foundation delivers tax relief, and PCMP plus SIMRP drives claim avoidance and cost reimbursement.
Employee Advantages: Higher Take-Home Pay & Enhanced Care
Participants in Core360 enjoy a suite of valuable benefits:
- 3–4% net paycheck increase (approximately $100 more per month)
- $0 copay telehealth for doctors, nurses, and wellness coaching
- 24/7 mental health support, addiction counseling, and life coaching
- Universal Life, Disability, and Critical Illness coverage
- Spouse and dependent enhancements
This comes at no additional cost to employees, with no change to their core health insurance. Instead, they experience an immediate boost in net pay and access to comprehensive preventive and reimbursable care.
Why Compliance and Simplicity Matter
Healthcare regulations and IRS guidance can be daunting. Core360 removes that complexity by:
- Centralizing Compliance: We administer Section 125 insurance, PCMP, and SIMRP under a single, IRS-approved framework.
- Automating Administration: We handle everything from payroll integration to annual nondiscrimination testing.
- Delivering Clear Results: Your leadership team receives ongoing reports on tax savings, claim reductions, and employee utilization.
This streamlined approach ensures you reap the Section 125 insurance savings without the risk of errors or penalties.
Health Sphere’s Mission and Value Proposition
Health Sphere exists to help companies improve employee well-being and reduce tax waste without adding cost or touching their current benefits. Our mission is to reach and impact over 250,000 employees by helping employers offer real, preventive health benefits that come with no out-of-pocket cost, no impact on employee pay, and, in many cases, actually result in higher net take-home pay. We believe better benefits should be simple, compliant, and truly beneficial for everyone.
When you choose Core360, you’re not just adopting another plan; you’re partnering with a team dedicated to improving benefits for your bottom line and for your people.
Frequently Asked Questions:
Q: What makes Health Sphere’s Core360 different?
A: Core360 is one of the most compliant and benefit-rich programs available. It drives real tax savings, improves employee well-being, and requires no cost or changes to your current setup.
Q: What do employees gain from enrolling in Core360?
A: Employees typically see a 3–4% increase in take-home pay, plus access to $0 copay telehealth, mental health services, wellness tools, and more.
Q: How much can my company save with Core360?
A: Most employers save around $600 per W-2 employee annually—about $60,000 per 100 employees—with zero out-of-pocket cost.
Getting Started: Capturing Your Section 125 Tax Savings
If you’ve wondered, “Am I missing out on big Section 125 tax savings?” the answer lies in modernizing your benefits with Core360. Here’s how to take the first step:
- Schedule a Discovery Call: A Health Sphere expert will walk you through your custom savings analysis.
- Review Your Proposal: See precise projections of tax savings, claim reductions, and ROI.
- Launch Core360: Go live in 30–45 days with zero cost and risk.
Don’t let outdated cafeteria plans leave money on the table. Embrace a fully integrated Section 125 plan that drives real savings, superior preventive care, and enhanced financial protection for your organization and employees.
Book your free consultation today and discover how Core360 can transform your benefits, boost morale, and optimize your tax strategy—all in one powerful solution.
