What is SIMERP? A Guide to Self-Insured Medical Expense Reimbursement Program
Introduction
In today’s complex healthcare landscape, businesses face the dual challenge of controlling medical expenses while providing quality benefits to their employees. We offer, via our partners, Revive and EHP an innovative solution called SIMERP – the Self-Insured Medical Expense Reimbursement Program. This preventative care management program is fully compliant with IRS, HIPAA, and ERISA regulations, and is offered at no net cost to both employers and employees.
In this article, we’ll explain what SIMERP is, outline its benefits, and explain why it’s becoming a trusted program for employers seeking payroll tax savings and comprehensive employee wellness benefits.
What is SIMERP?
SIMERP is a self-funded model that enables employers with 25 or more W-2 employees to reimburse employees for qualified medical expenses and wellness-related services. This program redirects certain employee health costs to be self-managed, offering a tax-advantaged approach to healthcare benefits.
The program is designed to provide substantial tax savings on payroll taxes, especially FICA, while giving employees access to a partner wellness program that includes:
• Primary and urgent care providers
• Mental health counselors
• Nutritionists
• A selection of 1,000 free medications
• Compliance You Can Trust
Navigating healthcare regulations is challenging. One of SIMERP’s key advantages is its strict adherence to:
• IRS rules governing tax-qualified medical reimbursements
• HIPAA regulations ensuring employee health information privacy
• ERISA standards for employee benefit plans
• This triple-layer compliance ensures the program is both legal and secure, giving employers and employees peace of mind.
How Employers Benefit
Companies adopting SIMERP see significant financial advantages, notably:
• FICA tax savings: Approximately $640 per employee, per year. This means companies reduce their payroll tax expenses, freeing up capital for other priorities. Preventative Care Program 1-pager
The employee’s FICA taxes are reduced by $93.33 per month, lowering your FICA match requirement by the same amount. Employers pay $40.00 per participating employee per month leaving a net savings to the employer of $53.33 per employee per month.
• No upfront costs or net expenses.
Employee Advantages
SIMERP doesn’t just benefit the employer. Employees receive:
• A substantial reduction in taxable wages – Preventative Care Program 1-pager
Each employee that opts into the EHP plan receives a $1,220 reduction in their taxable wages each month. The result is a substantial reduction in payroll taxes owed each pay period. These savings cover the cost of the Revive monthly membership and may provide a potential increase in their net take-home pay.
• Access to a comprehensive wellness program through Revive, which encourages preventative care and improves overall health outcomes, including mental health if applicable.
• This combination leads to healthier, happier employees who have access to affordable care options without additional out-of-pocket expenses.
Why Choose Us?
We bring, through our partners, Revive and EHP, expertise in designing and implementing SIMERP solutions tailored to your company’s unique needs, ensuring maximum tax advantages and seamless integration with your existing benefits programs.
Conclusion
SIMERP represents a smart, compliant, and effective way for mid-sized businesses to manage healthcare costs while enhancing employee benefits. By leveraging this preventative care management solution, employers save money on payroll taxes and empower their workforce to take a proactive approach to health – all at no net cost.
If you are interested in learning how SIMERP can benefit your company, contact us today for a confidential consultation: