Today’s workforce expects more than basic coverage. They want meaningful, family-inclusive benefits that improve their daily lives without shrinking their paychecks. That’s where a modern, fully managed Section 125 cafeteria plan paired with a robust Section 125 wellness plan can make a difference.
Employers across the country are upgrading from outdated benefits to more innovative programs like BrightPath Advantage, a plan that combines tax-advantaged structures with real healthcare value, all at zero cost to the company or employee.
Let’s break down how these plans work, and how they help your team and your bottom line.
What Is a Section 125 Cafeteria Plan?
A Section 125 cafeteria plan is a benefit structure defined by IRS Code Section 125. It allows employees to pay for qualified benefits, such as health insurance, dental, and vision, using pre-tax dollars. This lowers taxable income, resulting in:
- More take-home pay for employees
- Lower payroll taxes for employers
Traditionally, cafeteria plans have focused primarily on cost savings. But modern programs like BrightPath Advantage go a step further by integrating:
- A Preventative Care Management Plan (PCMP)
- A Specialized Insurance Medical Reimbursement Plan (SIMRP)
Together, these create one of the most compliant, automated, and benefit-rich offerings available today.
Why Pair Section 125 with a Wellness Plan?
Wellness is no longer optional; it’s expected. Employees are seeking support across the full spectrum of care, from urgent visits to mental health services and long-term planning.
A structured Section 125 wellness plan makes this possible by delivering:
- Zero-copay access to doctors and nurses, 24/7
- Family coverage with annual in-person visits
- Mental health and counseling
- Group term life insurance (a critical, high-value benefit)
- Preventative screenings and tools through Mayo Clinic programs
- Addiction recovery and EAP services
- And more all with $0 out-of-pocket costs
This wellness-first approach is why more than 30,000+ employees are now enrolled in BrightPath Advantage.
How It Works for Employers
As an employer, choosing a Section 125-based plan like BrightPath Advantage means immediate impact without financial strain or administrative headaches.
Here’s what you gain:
- $1,100/year savings per W-2 employee
(That’s $110,000 saved annually for a 100-employee team) - 5–10% healthcare cost reduction
- Zero out-of-pocket cost to implement
- 30–45 day rollout with white-glove onboarding
- Improved retention and engagement
- No disruption to existing health plans
And because the plan is fully managed, all Section 125 compliance, recordkeeping, and tax reporting is handled on your behalf.
How It Works for Employees
The BrightPath Advantage plan is designed to enhance employee wellness while protecting their paychecks. All core services are included under the Section 125 umbrella, ensuring they remain pre-tax and do not reduce net take-home pay.
Employee benefits include:
- $0 Copay 24/7 Telemedicine & Virtual Care
Spouse & Dependent Coverage with 12 In-person Visits/year - Employee Assistance Program (EAP) with mental health & counseling
- Group Term Life Insurance
(valued between $60–$100/month, and a critical benefit to families) - Mayo Clinic Wellness Tools & Dashboards
- RX Coverage with no copays
- Vision, Dental & Prescription Discounts
- Minimal Essential Coverage (MEC)
- In-Person Urgent Care Access
All benefits are extended to both the employee and their entire family, and all at $0 copay.
What Makes BrightPath Advantage Different?
Most traditional benefit plans do not combine compliance, cost savings, and care quality. BrightPath Advantage is structured to offer IRS-compliant savings through a Section 125 cafeteria plan, while delivering richer wellness care through the integration of PCMP and SIMRP.
This isn’t a standalone cafeteria plan. It’s a fully integrated solution that addresses:
- Health equity
- Financial wellness
- Mental health support
- Compliance and cost efficiency
It’s designed for today’s workplace and the employers who want to retain top talent.
Section 125 Plans and Compliance? Already Handled.
Worried about Section 125 rules and IRS documentation? That’s already covered.
BrightPath Advantage ensures your business is always in compliance with:
- IRS Code Section 125
- ACA requirements (MEC)
- HIPAA privacy standards
You receive detailed W-2 reporting guidance, proper plan administration, and full integration into payroll, with no additional work for HR.
Helping You Make Decisions That Matter
If you’re looking to offer the best health plan for your team, one that boosts wellness, increases retention, and saves money, it’s time to move beyond the basics.
A Section 125 cafeteria plan, combined with a Section 125 wellness plan like BrightPath Advantage, is the smart, modern way to support your employees and your bottom line — all at no added cost.
Future-Proof Your Benefits with BrightPath
Get a free proposal today to see how BrightPath Advantage can unlock savings and deliver true wellness, with no changes to your current insurance.