Most employers offer benefits because they have to. Very few stop and ask a harder question.
Are we actually getting everything we can out of our Sec 125 plan?
If you are like most business owners or HR leaders, you set up a benefits package years ago, renew it every year, and assume it is doing what it is supposed to do. But a traditional approach to a sec 125 plan often leaves serious value on the table. That value shows up as wasted tax dollars, underutilized benefits, and employees who still feel unsupported.
At Health Sphere, we see this all the time. Employers think they are compliant. They think they are efficient. But they are not truly maximizing the potential of their 125 cafeteria plan.
Let’s break down what that really means and what a modern Sec 125 strategy should look like today.
What a Sec 125 Plan Is Meant to Do
At its core, a sec 125 plan allows employees to pay for certain benefits with pre-tax dollars. This reduces taxable income for employees and lowers payroll tax liability for employers. The IRS created this structure to make benefits more affordable and more accessible.
A properly designed 125 cafeteria plan, IRS-compliant, should do three things well.
First, it should reduce payroll taxes for the employer in a measurable way.
Second, it should increase the real value employees receive without reducing their take-home pay.
Third, it should be simple, compliant, and easy to manage.
The problem is that many plans only achieve the first goal partially and miss the other two entirely.
The Hidden Problem With Traditional Sec 125 Plans
On paper, many employers technically have a Sec 125 plan. In practice, it often looks like this.
- Minimal benefit options.
- Little to no employee engagement.
- No meaningful family coverage.
- Benefits that sound good but are rarely used.
Employees enroll because they are told to, not because the benefits actually help them day to day. Employers save a little on taxes, but nowhere near what is possible. Over time, the plan becomes background noise instead of a strategic advantage.
This is where Health Sphere takes a very different approach.
Health Sphere’s Philosophy on Maximizing Value
Health Sphere was built around a simple idea. A sec 125 plan should feel like a win for everyone involved.
That means real employer savings, real employee benefits, and no disruption to existing health insurance. It also means focusing on benefits people actually use, including coverage that extends to spouses and dependents.
Our plans are designed to work within IRS guidelines while delivering outcomes that go far beyond compliance.
Revive: Turning a Sec 125 Plan Into a True Advantage
Revive is Health Sphere’s most comprehensive offering. It is built for employers who want to extract the maximum value from their 125 cafeteria plan.
For employers, Revive delivers approximately $1,100 per year in savings per W2 employee. It also helps reduce overall healthcare-related costs by an estimated 5 to 10 percent. These savings come from smarter tax structuring, not cutting benefits or shifting costs to employees.
For employees, Revive is where the real difference shows up.
Employees and their families receive 24/7 telemedicine and virtual care, along with up to 12 annual family care visits. This alone removes many of the barriers that stop people from seeking care early.
Mental health and counseling services are included, along with a full Employee Assistance Program. Mayo Clinic programs provide trusted, evidence-based guidance for complex health concerns.
Revive also includes Minimal Essential Coverage, which helps employees meet compliance requirements without adding financial strain.
One of the most important benefits of Revive is Group Term Life Insurance. This coverage carries an estimated value of $60 to $100 per month and applies to the employee. It is a benefit many employees want but rarely receive through traditional plans.
Prescription coverage is another standout feature. RX benefits come with zero copays. Not reduced copays. Zero. That applies across the board and extends to family members.
In-person urgent care, vision, dental, and prescription discounts are also included. Every benefit under Revive is offered at zero copay and applies to the employee and their family.
This is what maximizing a Sec 125 plan actually looks like.
Thrive: A Simpler Path With Immediate Employee Impact
Not every employer needs the full scope of Revive. Thrive was designed for businesses that want strong savings and highly visible employee benefits with a simpler structure.
Thrive delivers approximately $600 per year in savings per W2 employee and still supports a 5 to 10 percent reduction in healthcare-related costs.
One of Thrive’s most compelling features is its impact on employee pay. Many employees see an increase in net pay of around $100 per month. That is money they can feel immediately, not a benefit they may or may not use someday.
Thrive includes 24/7 telemedicine and virtual care, mental health services, and a robust Employee Assistance Program. It also covers spouses and dependents, which is critical for real employee satisfaction.
Additional benefits include addiction recovery support, couples counseling, diet and stress programs, and a health vitals facial scan tool that helps employees stay proactive about their health.
As with Revive, all benefits are offered at zero copay and apply to the employee and their family.
Why Family Coverage Matters More Than Ever
One of the biggest mistakes employers make with a sec 125 plan is treating it as an individual-only benefit.
In reality, employees make decisions based on their families. A plan that ignores spouses and dependents will always feel incomplete. Health Sphere places family coverage at the center of both Revive and Thrive because that is where the real value is.
When families are covered, employees are less stressed, more focused, and more loyal. That has a direct impact on retention and productivity.
Compliance Without Complexity
A common concern with any 125 cafeteria plan irs regulated is compliance. Health Sphere addresses this head-on.
Both Revive and Thrive are designed to meet IRS, ACA, HIPAA, and Department of Labor requirements. The plans are fully managed, meaning employers do not need to become benefits experts or add administrative burden.
Implementation is straightforward, and existing health insurance plans remain untouched.
Are You Leaving Value on the Table?
If your current sec 125 plan feels invisible, underused, or confusing, chances are you are not maximizing its potential.
A modern approach does not just save money. It improves lives, strengthens families, and helps businesses operate more efficiently.
Health Sphere helps employers transform a basic compliance tool into a strategic advantage. The question is not whether you have a Sec 125 plan. The question is whether it is truly working for you and your people.
If it is not, there is a better way forward.
Frequently Asked Questions
How is Health Sphere different from the typical Sec 125 plan most companies have?
Most Sec 125 plans technically exist but barely do anything. Health Sphere actually makes the plan work. You get real tax savings, employees get benefits they will use, and families are covered. It stops being paperwork and starts being valuable.
Is this really compliant with IRS Section 125 rules?
Yes. The plans are built to follow IRS Section 125 guidelines, along with ACA and other requirements. You do not have to figure it out yourself. Health Sphere handles the structure so you stay compliant without extra stress.
3. Are spouses and dependents actually covered, or is that just marketing talk?
They are truly covered. Not limited, not watered down. Telemedicine, mental health, prescriptions, and other services apply to the employee and their family. That is one of the biggest reasons employees actually care about these plans.
4. Will employees lose money from their paycheck to get these benefits
No. Thrive often increases net pay by around $100 a month, and Revive adds major benefits without cutting take-home pay. Employees do not have to give something up to get more value.
