FOR EMPLOYERS
Medical Insurance Premiums Are Skyrocketing. We Can Help.
Rising insurance costs are eating into your bottom line. With EHP's SIMERP program, employers with 10+ employees save as much as $1,000 per employee annually in reduced medical expense and FICA taxes at zero net cost, while giving employees zero-cost access to comprehensive virtual care.
No carrier changes. No new premiums. Fully IRS-compliant under §105/§125.
The Math Behind Your Savings
How SIMERP Generates FICA Tax Savings
Through a pre-tax salary reduction under IRS Section 125, both employers and employees reduce their taxable payroll, generating real, verified savings every pay period at zero net cost to the employer.
Pre-Tax Salary Reduction
$14,460
Annual actuarially-determined fair market value of medical care and wellness services, reducing taxable payroll per employee.
FICA Tax Rate (Employer)
7.65%
Employers pay 7.65% in FICA taxes (6.2% Social Security + 1.45% Medicare) on every dollar of taxable payroll.
Your Annual Savings
$1,000+
Per employee, per year in employer savings ($640 from reduced FICA taxes and up to $360 from reduced medical co-pays and insurance premiums), verified and audit-ready under IRS §105/§125 frameworks.
See the Savings Scale
10 Employees
$10,000
saved per year
100 Employees
$100,000
saved per year
500 Employees
$500,000
saved per year
Based on up to $1,000 per-employee annual savings ($640 from reduced FICA taxes and up to $360 from reduced medical co-pays and insurance premiums). Actual savings may vary depending on payroll structure.
Cost-Neutral by Design
A Program That Pays for Itself
SIMERP/WIMPER requires no additional budget. The medical expense and tax savings generated cover the entire cost of the program, delivering better benefits without increasing your bottom line spend, leaving you with a net positive cash flow of as much as $1,000 per employee annually.
Zero Net Cost to Your Business
SIMERP pays for itself through payroll tax savings. Employers save as much as $1,000 per employee annually ($640 from reduced FICA taxes and up to $360 from reduced medical co-pays and insurance premiums), fully offsetting program costs with no new premiums or products required.
Workers Comp Reduction
By providing proactive preventive care and wellness services, SIMERP helps reduce workplace health incidents, leading to lower workers compensation claims and insurance costs over time.
Seamless Payroll Integration
SIMERP integrates with your existing payroll systems using standard pre-tax deductions and post-tax reimbursements. No new platforms to learn, and minimal operational burden on your HR and finance teams.
$0 net cost to employers. Real savings from day one.
No carrier changes, no new premiums. SIMERP works alongside your current benefits and payroll, generating tax savings that fully fund the program.
Fully Compliant Framework
Built on Established Tax Law
SIMERP is grounded in decades of IRS precedent and operates within well-established federal tax and benefits frameworks. It is not a loophole, but a legitimate strategy.
IRS Section 105 / 125
SIMERP operates as a compliant Self-Insured Medical Expense Reimbursement Plan under IRC Section 105(b), with pre-tax salary reductions processed through a Section 125 cafeteria plan. Reimbursements correspond to actuarially-determined fair market value of medical care services actually provided.
- Professional actuarial certification by American Academy members
- Conservative 75% methodology ensures compliance buffer
- Follows established IRS precedent for standardized valuations
ACA Compatible
SIMERP enhances rather than complicates ACA compliance. It operates as a supplemental medical care and wellness benefit that complements your existing ACA-compliant health coverage without affecting employer shared responsibility requirements.
- Does not impact affordability or minimum value calculations
- Qualifies as participatory wellness program under HIPAA
- Automatically satisfies ACA wellness program requirements
ERISA Compliant
SIMERP operates as a compliant employee welfare benefit plan under ERISA, providing comprehensive federal law protections and simplified administration through ERISA preemption of conflicting state laws.
- Federal preemption from state insurance laws
- Professional fiduciary administration and oversight
- Comprehensive participant rights and appeals procedures
Audit-Ready Documentation Included
Every SIMERP implementation includes comprehensive plan documents, actuarial certifications, and automated compliance monitoring with 95%+ engagement rates.
Discuss Compliance DetailsSeamless Integration
Works With Your Current Benefits, Not Against Them
SIMERP enhances your existing benefits stack with zero disruption and zero net cost to your business. No plan changes, no new carriers, and minimal effort from your HR team.
Works Alongside Current Insurance
SIMERP operates as a supplemental medical care and wellness benefit that complements your ACA-compliant health coverage. No carrier or plan changes required.
Plugs Into Existing Cafeteria Plans
SIMERP integrates seamlessly with your existing IRC Section 125 cafeteria plan as an additional qualified benefit option during regular open enrollment periods.
Standard Payroll Processing
Pre-tax deductions and post-tax reimbursements run through your existing payroll systems using standard procedures. No new software needed.
Minimal Day-to-Day HR Burden
Comprehensive professional administration and automated compliance monitoring handle the heavy lifting. Your team maintains only basic enrollment documentation.
No Conflict with Medicare or ACA
SIMERP provides preventive services rather than insurance coverage, so Medicare coordination, ACA affordability, and minimum value calculations are unaffected.
Uniform, Nondiscriminatory Design
The same benefits and requirements apply to all eligible employees, helping satisfy IRC Section 105(h) nondiscrimination testing with broad-based participation.
Ready to Start Saving?
Book a free 15-minute call with Dimitri to see exactly how much your company can save with SIMERP at zero net cost. No obligation, no carrier changes required.
For employers with 10+ employees