Healthcare costs are rising. Tax burdens feel heavier. And both employers and employees are searching for smarter ways to protect their wallets without compromising coverage. That’s where a Section 125 insurance plan comes in.
Also known as a 125 insurance plan, this strategy allows employees to pay for qualifying health benefits using pre-tax income. That alone creates real savings. But when this structure is integrated into a full program like Health Sphere’s Revive and Thrive plans, the value multiplies, for both the workforce and the business.
Let’s unpack how a Section 125 insurance plan works, why it saves money, and how Health Sphere helps employers turn this tax advantage into long-term performance gains.
What Is a Section 125 Insurance Plan?
A Section 125 insurance plan saves money by letting employees pay for benefits with pre-tax dollars, lowering taxable income and payroll costs. With Health Sphere’s Revive and Thrive, those savings multiply; employers save $600–$1,100 per W-2 each year while employees gain $0 copay coverage, wellness tools, and family support. It’s compliance, savings, and better benefits, all managed for you.
A Section 125 insurance plan refers to the component of a cafeteria plan that allows employees to deduct qualified benefit premiums directly from their paycheck before taxes are applied. This can include:
- Health insurance premiums
- Dental and vision insurance
- Health savings or flexible spending accounts
Because these contributions are taken out before income taxes, employees instantly reduce their taxable income, and employers lower their payroll tax obligations as well.
But Health Sphere takes it a step further by offering Revive and Thrive, two robust programs that combine Section 125 with advanced wellness services and insurance coverage.
How Employees Save with Health Sphere’s 125 Insurance Plan
When employees enroll in the Revive or Thrive plan, they access far more than just a pre-tax deduction. Here’s what that means financially:
- Reduced taxable income means more take-home pay
- Access to $0 copay services for the entire family
- No surprise medical bills for everyday care
- Comprehensive coverage, including RX, dental, and vision
- 24/7 access to virtual care, mental health, and EAP services
Revive and Thrive both include a structured 125 insurance plan at the core, but they expand it with full coverage through a Preventive Care Management Plan (PCMP) and a Specialized Insurance Medical Reimbursement Plan (SIMRP). These are not standalone cafeteria plans. They are fully managed, automated, and cost-free for employers.
Real Employer Savings You Can Count On
Every W-2 enrolled in the Revive or Thrive plan generates guaranteed annual savings.
- Revive (available through BrightPath and also offered by Health Sphere) creates $1,100 in savings per W-2
- Thrive (used by Elevate and Lumara, also available through Health Sphere) creates $600 in savings per W-2
- Across 100 employees, that’s $60,000 to $110,000 back in your bottom line, every year
In addition to payroll tax savings, companies typically see a 5 to 10 percent reduction in overall healthcare costs. Fewer claims, better wellness support, and smarter benefit utilization all contribute to these gains.
Implementation is fast, typically within 30 to 45 days, with no disruption to existing health plans. Health Sphere handles everything, including compliance, communication, enrollment, and support.
Comprehensive Coverage at No Cost to Employees
One of the most important things about the Health Sphere model is that all benefits extend to spouses and dependents, and everything is provided at zero copay. This includes:
- Telemedicine and in-person urgent care
- Family coverage with 12 annual visits
- Employee Assistance Program with mental health and addiction support
- Wellness tools powered by Mayo Clinic
- Group Term Life, Critical Illness, and Disability coverage
- RX coverage with no copays
- Tools like Vitals facial scan, diet tracking, and stress programs (under Thrive)
All of these are enabled by a Section 125 insurance plan at the foundation, but supercharged through Health Sphere’s proprietary care model.
Why Health Sphere?
With over 70,000 employees enrolled across both Revive and Thrive, Health Sphere is redefining how organizations approach benefits and tax savings.
You get:
- A fully automated, audit-ready Section 125 insurance plan
- A wellness plan that actually improves retention and performance
- A zero-cost, zero-hassle implementation process
- Long-term value with short-term tax relief
Whether you’re a small business or a national organization, the question is no longer whether you can afford a benefits plan. With Health Sphere, the better question is: how much are you losing by not switching?
Better Coverage. Lower Taxes. One Simple Plan.
Talk with an expert today to see how Revive or Thrive can make a difference for your business and your team.
