Can a Section 125 Agreement Really Improve Your Employee Benefits Package?
In a time when the quality of employee benefits can make or break your firm’s ability to hire and keep the best people on your team, many business leaders are on a quest for new, balanced, and affordable ways of providing more value to their teams. If you’re one of them, you’ve probably encountered the term Section 125 agreement. But what is it—and more importantly, can it improve your benefits strategy?
The short answer? Yes—but only when it’s done right.
Let’s explore how Health Sphere’s Core360 program leverages a Section 125 plan alongside other high-impact tools to build one of today’s most powerful, compliant, and employee-friendly plans.
What Is a Section 125 Agreement?
A section 125 plan—sometimes called a “cafeteria plan”—lets employees pay for certain benefits using pre-tax income. That means they get access to health-related services while lowering their taxable earnings. Employers also pay less in payroll taxes. So both sides save money without changing salaries or current insurance structures.
However, a Section 125 insurance alone is no longer enough. Today’s workforce demands more from their benefits. That’s where Core360 comes in.
Core360: A Modern Upgrade to Section 125
Health Sphere’s Core360 isn’t your typical cafeteria plan. It goes beyond traditional 125 plan benefits by packaging the section 125 plan with two powerful components:
- Preventative Care Management Plan (PCMP)
- Self-Insured Medical Reimbursement Plan (SIMRP)
Together, these create a fully managed, compliant, and cost-free benefits program for employers, while significantly improving take-home value for employees.
Why Employers Choose Core360
Let’s talk numbers. As a Group 2 solution from Health Sphere, Core360 serves companies with 40,000–70,000+ enrolled employees. And here’s why so many employers are making the switch:
$600 Annual Savings Per Employee
For every W2 employee, you save approximately $600 annually in payroll taxes. That’s $60,000 in savings per 100 employees—without touching your current insurance or increasing costs.
No Out-of-Pocket Costs
Unlike traditional benefits upgrades that require additional spend, Core360 is built to be completely cost-neutral for the employer.
Reduce Claims by $1,400 Over 3 Years
Including preventative care services significantly reduces your team’s reliance on expensive healthcare procedures, saving your company even more over time.
Implementation in 30–45 Days
The setup process is fast, seamless, and automated. There are no paperwork headaches, no drawn-out rollouts, just simple, efficient onboarding.
Improved Retention & Performance
Employees who feel supported and valued stay longer, perform better, and recommend your workplace to others.
125 Plan Benefits for Employees
So, how does Core360 stack up for your team?
3–4% Net Pay Increase
Employees typically see a net paycheck increase of around $100/month, with no change in gross pay. That’s thanks to tax-free contributions through the Section 125 agreement.
$0 Copay Telehealth Services
Employees and their families have 24/7 access to doctors, nurses, and mental health support—with no copay required.
Access to Mayo Clinic Tools
Each employee receives a personalized health dashboard powered by Mayo Clinic wellness tools, which enable better health decisions and long-term well-being.
Coverage That Goes Beyond
Employees gain valuable protection through Universal Life, Disability, and Critical Illness policies. Plus, their spouses and dependents are covered too.
More Than 40,000 Employees Enrolled
Over 40,000 employees are already benefiting from Core360, and the number continues to grow as more companies realize the difference this plan makes.
How Core360 Makes Section 125 Plans Better
One of the most important distinctions to understand is that Core360 doesn’t just offer a Section 125 plan—we leverage the power of a Section 125 plan in a broader strategy.
Traditional 125 plan benefits include pre-tax insurance premiums or dependent care assistance. But Core360 transforms that foundation into something far more impactful by managing:
- Pre-tax benefit administration
- Preventative health screenings
- Fully compliant medical reimbursements
- Automated processing and reporting
- Payroll-integrated tax savings
The result? A benefit-rich program that helps people live healthier lives brings savings back to your bottom line.
A True Win-Win for Employers and Employees
Let’s break down the win-win:
For Employers:
- Save ~$600/year per W2
- Cut claims costs by $1,400 in three years
- Boost employee loyalty and reduce turnover
- Zero cost to implement
- Fast setup (just 30–45 days)
For Employees:
- Net pay increase (~$100/month)
- $0 copay for Telehealth and mental health support
- Life, disability, and critical illness protection
- Enhanced family coverage
- Tools from the Mayo Clinic
These are more than just 125 plan benefits—they’re real-life improvements.
Why Health Sphere Is Different
At Health Sphere, we’re not just another benefits provider. We exist to help companies:
- Improve employee wellbeing
- Reduce tax waste
- Do it all without adding cost
Our mission is to reach over 250,000 employees with more straightforward, compliant, and valuable benefits than they’ve experienced before.
That mission drives everything we do—from plan design to onboarding to continued support. It’s why brands trust Core360 to deliver compliant, scalable benefits that actually make a difference.
FAQ’s
Q: How is Core360 different from traditional benefit plans?
Traditional plans typically focus on health insurance and retirement. Core360 goes further by boosting take-home pay, lowering healthcare costs, and giving employees access to round-the-clock care and wellness tools—all without requiring changes to their existing insurance.
Q: Is there any cost for employers to use Core360?
No. Core360 is completely cost-free for employers to implement and maintain. It can help employers save an average of $600 per employee per year in payroll taxes.
Q: Does Core360 replace existing benefits?
No. It integrates alongside existing benefit programs, enhancing what employers offer without requiring changes.
Final Thoughts: Is It Time to Rethink Your Benefits Package?
If you rely on a standard Section 125 plan to enhance your benefits, you’re only scratching the surface of what’s possible.
With Core360, Health Sphere reimagines the benefits of a Section 125 plan. By combining the tax advantages of a Section 125 agreement with proactive health services and reimbursements, your business can offer more without spending more.
So yes, a Section 125 plan can improve your benefits package—but only when it’s integrated into something more innovative, modern, and human.
That’s the Health Sphere difference.
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