Section 125 Plans: The Backbone of Modern Employee Benefits

When it comes to building a successful business, most employers would agree on one thing: your people are your greatest asset. And in today’s competitive job market, how you take care of them matters more than ever.

That’s why Section 125 plans — especially when integrated into a more robust offering — have become a key component of modern employee benefits.

But here’s what most companies miss: A 125 cafeteria plan alone isn’t enough.

To truly make an impact — financially and culturally — small businesses need a solution that does more than just offer tax savings. They need a plan like Life Flex from Life Strong Care.

Let’s explore why Life Flex, which leverages Section 125 together with a fully managed PCMP and SIMRP, is becoming the new backbone of employee benefits for small employers across the country.

What Is a Section 125 Program?

A Section 125 program, often called a cafeteria plan, allows employees to contribute to certain benefits on a pre-tax basis, reducing their taxable income and the employer’s payroll tax liability.

But not all Section 125 plans are created equal.

Traditional cafeteria plans focus solely on pre-tax benefits. In contrast, Life Flex enhances this tax advantage by integrating it with two additional layers:

• A Preventative Care Management Plan (PCMP)
  
  
• A Self Insured Medical Reimbursement Plan (SIMRP)
  
  

This integrated approach is what makes Life Flex more than just a tax strategy — it’s a comprehensive, automated, and compliant benefits solution for employers and employees.

Life Flex: Built for Today’s Small Businesses

Life Strong Care’s Life Flex plan is designed specifically for small to mid-sized employers who want to offer meaningful benefits without increasing costs or complexity.

It combines the traditional power of a 125 cafeteria plan with modern health, wellness, and financial protection tools — giving your business the best of both worlds.

How Life Flex Uses Section 125 as a Foundation?

At its core, Life Flex leverages Section 125 to enable pre-tax contributions for qualified health and benefit services. This:

• Lowers employee taxable income
  
  
• Reduces employer payroll taxes (FICA, FUTA, SUTA)
  
  
• Keeps employee take-home pay the same
  
  

But where Life Flex goes further is in how it reinvests those savings into additional services that promote wellness, reduce healthcare claims, and increase employee satisfaction.

More Than a Tax Plan — It’s a Health and Wellness Strategy

Traditional Section 125 programs stop at tax savings.

Life Flex is different. It includes:

Preventative Care Management Plan (PCMP)

A PCMP helps employees stay ahead of chronic conditions by providing:

• 24/7 Telehealth access to doctors, nurses, and health coaches
  
  
• Wellness dashboards with personalized tools and education
  
  
• Proactive outreach to engage high-risk members early
  
  

This reduces long-term claims and supports a healthier, more productive workforce.

Self Insured Medical Reimbursement Plan (SIMRP)

The SIMRP layer adds another layer of value by reimbursing employees for eligible medical expenses not covered by other plans — 100% tax-free.

This gives employees peace of mind and further enhances the overall benefit offering.

Employer Benefits: Designed for Real Results

As a Group 1 plan, Life Flex supports businesses with 30,000–40,000+ enrolled employees — delivering specific, measurable results for small to mid-sized companies.

Employers Save $600–800 Per Employee, Per Year

• Roughly $680 in payroll tax savings per W2
  
  
• For 100 employees, that’s $68,000 saved annually
  
  

Zero Out-of-Pocket Cost

• The program is completely cost-free for employers to implement and maintain.
  
  

Reduced Healthcare Claims

• Average reduction of $1,400 per employee over three years due to proactive care and fewer ER visits.
  
  

Fast Setup

• Less than 50 days implementation with no administrative lift from your team.
  
  

Improved Retention & Culture

• Employees stay longer when they feel cared for — and Life Flex delivers real, usable benefits they value.

Employee Benefits: More Support Without Less Pay

Unlike other benefit adjustments that shrink employee paychecks, Life Flex offers expanded coverage with no impact to take-home pay.

Key Employee Benefits Include:

• $0 copay Telehealth (24/7 doctors, nurses, and wellness coaches)
  
  
• Mental health, addiction, and counseling support
  
  
• Access to Mayo Clinic-backed wellness tools and a personal health dashboard
  
  
• Universal Life, Disability, and Critical Illness plan
  
  
• Spouse and dependent coverage for a family-first approach
  
  
• No decrease in net pay
  
  

More than 30,000 employees are already enrolled in Life Flex — a number that continues to grow each month.

Why Section 125 Is Only the Beginning?

It’s easy to think of a 125 cafeteria plan as a tax tool. And yes, the savings are significant.

But with Life Flex, Section 125 is just the starting point for something much bigger — a smarter, more human-focused benefits strategy that supports both employee well-being and business growth.

What Makes Life Flex Different?

• It’s not just a Section 125 plan — it includes Section 125 along with PCMP and SIMRP.
  
  
• It’s fully automated and compliant — so your team doesn’t have to manage it.
  
  
• It offers real benefits employees use — mental health, family support, zero copay telehealth, and more.
  
  
• It’s cost-free and delivers an immediate impact on your bottom line.

Life Strong Care: Building Stronger Teams Through Smarter Benefits

At Life Strong Care, we know what small businesses need because we’re built for them.

“Life Strong Care helps businesses build healthier, more loyal teams—by offering real benefits that employees care about, without adding new costs or complexity. Our plan strengthens morale, supports family well-being, and saves companies thousands every year in payroll taxes. It’s fully compliant, requires no out-of-pocket cost, and is simple to implement. We believe that when people feel supported, companies grow stronger—and we’re here to make that possible for employers of all sizes.”

Our mission is simple: build strong teams through care.

Is Your Business Ready to Upgrade Its Benefits Strategy?

If you’ve been relying on a basic 125 cafeteria plan — or offering no benefits at all — now is the time to explore a better path.

With Life Flex, you’ll unlock:

• Immediate tax savings
  
  
• A more competitive benefits offering
  
  
• Tools that improve employee health, loyalty, and satisfaction
  
  
• A fully compliant, zero-cost rollout — in just 30–45 days
  
  

Let’s Talk Benefits

Whether you’re ready to enroll or just exploring options, we’re here to help.

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We’ll show you exactly what Life Flex could do for your business.

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