The Benefits of a Section 125 Flexible Spending Account for Businesses & Employees

In today’s competitive job market, offering robust health benefits isn’t a luxury—it’s a business imperative. But what if you could provide your employees with more while reducing your business’s expenses? That’s precisely what the Core360 program by Health Sphere accomplishes.

Core360 is not a typical Section 125 plan. It uses a Section 125 flexible spending account design, but pairs it with two strong additions: a Preventative Care Management Plan (PCMP) and a Self Insured Medical Reimbursement Plan (SIMRP). The outcome? One of the most compliant, cost-efficient, and effective benefit solutions on the market today.

Let’s dissect how a Section 125 flexible spending account operates—and how Core360 takes it several steps further.

What is a Section 125 Flexible Spending Account?

A Section 125 flexible spending account (FSA) enables workers to contribute pre-tax dollars into a fund specifically designated for eligible medical expenses. This reduces their taxables, hence paying reduced federal income and payroll taxes.

However, with Core360, the benefit goes beyond tax savings.

The plan integrates the FSA concept with fully managed PCMP and Self Insured Medical reimbursements (SIMRP), transforming an ordinary tax shelter into a high-impact financial and health well-being strategy.

Core360: A Smarter Section 125 Solution

This is how Core360 by Health Sphere is different:

Includes Section 125 Pre-Tax Deduction
Fully managed PCMP and SIMRP integration
Zero out-of-pocket cost for employers
Zero disruption to current health plans
Rapid, automated deployment in as little as 30–45 days

Whereas a standard Section 125 flexible spending account can save a few hundred dollars, Core360 does so much more, providing greater savings, improved care, and actual employee influence.

How Core360 Helps Employers

Whether you have a small business or a large corporation, Core360 provides quantifiable bottom-line benefits. It’s one of the only benefit strategies that provides employers with more value without additional cost or complexity.

Here’s what you can anticipate:

Save ~$600/year per W2 Employee

That’s $60,000 for every 100 employees—just by tapping into pre-tax Section 125 deductions under the Core360 plan.

No Out-of-Pocket Cost

This doesn’t cut into your budget. The money saved pays for the program itself—so it’s entirely cost-neutral (and frequently cost-positive).

Reduced Healthcare Claims

By emphasizing preventive care under the PCMP, employees remain healthier and sidestep expensive claims. Employers generally experience $1,400 in claim reductions per employee for 3 years.

Boost Retention & Performance

Providing benefits such as 24/7 telehealth, wellness coaching, and mental health resources creates a happier, more productive workforce.

Fast Implementation

Implementation of Core360 is possible in 30–45 days with automated onboarding and compliance monitoring.

How Core360 Helps Employees

As opposed to most benefit programs that involve payroll deductions or plan modifications, Core360 enhances employee wellbeing without adjusting current coverage—or their take-home pay.

Here’s what employees receive:

3–4% Net Paycheck Increase

Thanks to pre-tax Section 125 deductions, workers normally receive an additional ~$100/month in their take-home pay.

$0 Copay Telehealth

Unlimited 24/7 access to physicians, nurses, and wellness coaches.

Preventative Care, Mental Health & Wellness Tools

From addiction resources to Mayo Clinic-endorsed health dashboards, Core360 empowers the complete individual.

Spouse & Dependent Benefits

Family coverage expands the value of Core360 across families.

And it’s paying off: Over 40,000 employees are already signed up for Core360 and experiencing the benefits themselves.

Why It Works: Section 125 + PCMP + SIMRP

The true strength of Core360 is its integration.

Legacy FSAs are all about tax savings. Core360 uses a Section 125 flexible spending account and adds two proprietary elements:

Preventative Care Management Plan (PCMP): Employees are provided proactive, managed wellness care intended to avoid health problems before they escalate into expensive claims.

Specialized Insurance Medical Reimbursement Plan (SIMRP): Tax-free reimbursement of particular insurance-related expenses is permitted—again reducing out-of-pocket costs for employees.

Together, the three provide unbeatable value—better care, better coverage, and better finances.

A Behind-the-Scenes Solution with Real Impact

One of the best things about Core360 that employers love is the way it operates invisibly in the background.

No alteration to current health insurance plans.

Employers retain their physicians and networks.

All administration, onboarding, and compliance are handled completely.

It’s intended to be effortless—for HR and for employees—yet delivers quantifiable results throughout your organization.

The Health Sphere Advantage

Health Sphere exists to help companies improve employee well-being and reduce tax waste, without adding cost or touching their current benefits. We’re on a mission to impact over 250,000 lives by helping employers offer real, preventative health benefits that work quietly in the background to support both people and profits.