Better benefits for your team. A stronger value equation for your business.
ESPA adds practical healthcare access for employees and their families while creating a tax-efficient benefits structure that can reduce applicable employer payroll taxes.
When employees use the ESPA for routine and preventive needs, they rely less on the ER, urgent care, and specialist visits. Each of those visits costs the major medical plan something. Over time, fewer of those visits softens claims pressure at major medical renewal.
The ESPA does not directly lower your major medical premium. What it does is move routine care to a separate, lower-cost path so the major medical plan is used for the things it was designed for: hospitalization, major procedures, and ongoing chronic care.
Eligible employees may prospectively elect through the employer’s Section 125 cafeteria plan to satisfy their share of the Employer-Sponsored Medical Benefit.
Qualifying Section 125 elections can reduce wages subject to applicable employer payroll taxes. The resulting payroll-tax savings can help offset the employer’s program costs.
The SIMRP is a separate employer-funded benefit. It is not funded by the employee’s Section 125 election.
Employer-Sponsored Medical Benefit: qualifying medical services provided through an employer accident or health arrangement. Eligible employees may satisfy their required share through a Section 125 election. Section 106 addresses the employer-provided coverage.
SIMRP: a separately employer-funded medical reimbursement benefit under Section 105(b).
The two benefits are coordinated for the employee but remain separate in their funding and tax functions.
Both benefits work alongside your existing major medical plan. BizPower Benefits provides the plan-document support, technology and administrative infrastructure that make ESPA simpler to put in place.
Your CPA reviews every plan document during setup. We are happy to schedule a joint call with your CPA before any documents are signed.
Your broker keeps the major medical relationship. The ESPA does not require rebidding any line of coverage.
Day-to-day plan administration runs through the employer technology portal. Enrollment, employee data changes, and offboarding flow through one system.