For employers who wish to offer their employees a more comprehensive benefits package but do not want to spend extra money doing this, knowing how to use IRS Code Section 125 is smart. But the catch is, it’s not all about the section 125 anymore.
At Bright Path, our completely managed program merges Section 125 with a Preventative Care Management Plan (PCMP) and a Self-Insured Medical Reimbursement Plan (SIMRP), with one of the most comprehensive, compliant, and benefit-productive platforms in the marketplace.
If you want to increase employee satisfaction, reduce healthcare costs, and increase retention, without extra administrative difficulty and early costs, this article is for you.
What Is IRS Code Section 125?
Let’s simplify it. IRS Code Section 125 refers to a provision in the Internal Revenue Code that allows employees to convert taxable wages into non-taxable benefits. In essence, it lets employees pay for certain eligible expenses—like insurance premiums or dependent care—with pre-tax dollars.
But Bright Path takes it a step further.
Through our BrightPath Advantage program, Section 125 isn’t offered as a standalone plan. Instead, it’s integrated with two additional components—PCMP and SIMRP—to unlock greater value for employers and employees.
How the BrightPath Advantage Program Works
BrightPath Advantage is not your traditional employee benefits cafeteria plan. It leverages the power of Section 125 in combination with:
- Preventative Care Management Plan (PCMP)
- Self-Insured Medical Reimbursement Plan (SIMRP)
Together, these three components create a compliant, automated benefits experience that is easy to implement and even easier to maintain.
A Closer Look at Each Component:
- Section 125 (The Tax Advantage)
Allows pre-tax deductions, lowering payroll tax liabilities for employers and taxable income for employees.
- PCMP (The Care Advantage)
It offers employees access to preventive care tools like telehealth, mental health counseling, and Mayo Clinic wellness resources without added cost.
- SIMRP (The Reimbursement Advantage)
Provides tax-free reimbursement of eligible out-of-pocket medical expenses.
With BrightPath Advantage, you’re not just offering a flexible benefit but a smarter one.
Employer Benefits of BrightPath Advantage
BrightPath Advantage is designed to give employers a financial and operational edge. Here’s how:
- Save an average of $680 per W-2 employee annually
- No out-of-pocket cost to implement or maintain
- 30–45 day implementation for fast, seamless rollout
- Reduced claims costs—an average of $1,400 per employee over 3 years
- Boost retention, morale, and team performance.
- Immediate impact on your bottom line
The best part? Our team handles everything—setup, compliance, reporting, and ongoing employee engagement. All you need to do is say yes to a better benefits path.
Employee Benefits of BrightPath Advantage
Bright Path doesn’t just help your business—our platform directly improves your employees’ well-being:
- No reduction in take-home pay
- $0 copay 24/7 access to telehealth, nurses, wellness coaches, and behavioral health support
- Access to Mayo Clinic tools, including personalized health dashboards
- Support for mental health, addiction recovery, and family counseling
- Universal life, disability, and critical illness coverage
- Coverage enhancements for spouses and dependents
More than 30,000 employees are already enrolled in BrightPath Advantage—and are seeing the results firsthand.
How It Differs from a Traditional Employee Benefits Cafeteria Plan
If you’ve considered offering a traditional employee benefits cafeteria plan, you may already know the limitations. While they allow for tax savings, traditional cafeteria plans are often administratively heavy and lack flexibility in coverage expansion.
BrightPath Advantage improves on that model by integrating:
- Full automation and compliance monitoring
- A wider range of healthcare and lifestyle benefits
- Zero disruption to existing coverage
- Hands-on support for both employers and employees
Simply put: we’ve removed the complexity and added more value.
Why Now Is the Time to Reimagine Your Benefits Strategy
In today’s job market, employees expect more than the basics. They want meaningful, accessible, cost-effective benefits supporting their lives, not just their roles.
Offering a platform like BrightPath Advantage shows your team that you care without increasing operational costs. With savings of up to $800 per employee, it’s one of the few programs that benefits both sides of the equation.
Quick Recap: Why BrightPath Advantage Is Different
Here’s how BrightPath Advantage stands out from a basic employee benefits cafeteria plan:
- Leverages IRS Code Section 125, but isn’t limited to it
- Integrates PCMP and SIMRP to offer richer, more diverse benefits
- Completely managed and fully compliant
- Zero cost to employers or employees
- Rapid setup and immediate return on value
And remember: This isn’t theory. It’s happening now—at scale. Bright Path is leading the way with over 30,000 enrolled members and growing.
What Makes Bright Path the Smarter Route
Bright Path helps employers take a clearer, smarter approach to offering real employee benefits without the usual complexity, cost, or confusion.
We do this by:
- Reducing payroll taxes through strategic benefit design
- Enhancing employee retention and workplace satisfaction
- Providing turnkey implementation and ongoing program support
The result? A healthier workforce and more substantial margins, with none of the friction.
Conclusion
Understanding Section 125 is just the beginning. Combining it with the structured innovations found in BrightPath Advantage—including PCMP and SIMRP—creates a more powerful, cost-effective, and future-ready benefits platform.
Instead of settling for a traditional employee benefits cafeteria plan, choose a smarter, more straightforward, and more impactful path.
BrightPath Advantage is the future of workforce care—benefit-rich, fully compliant, and ready for you.
Learn more at BrightPathGrp.com or contact our team to schedule a free walkthrough of your potential savings.
