SIMRP

How SIMRP Works

The Self-Insured Medical Reimbursement Program (SIMRP) is an IRS-compliant benefit strategy that uses pre-tax wellness deductions and reimbursements to reduce payroll taxes while offering meaningful medical and wellness benefits to employees. Employers can save around $550 per employee per year, improve retention, and provide wellness programs such as telehealth and mental health services—all while keeping employees’ take-home pay intact.

SIMRP uses a Section 125 salary reduction and an after-tax reimbursement tied to qualified 213(d) medical care, integrated with employer-sponsored major medical coverage.

What SIMRP is (in plain English)

SIMRP (Self-Insured Medical Reimbursement Plan)

SIMRP is a structured way to use pre-tax payroll dollars to reimburse eligible medical expenses—while also funding better benefits and a real wellness program. When it’s designed and administered correctly, it can reduce employer payroll taxes and improve what employees actually get.

Tax efficiency:

Pre-tax structure can reduce payroll taxes for the employer and employees.

Better benefits:

Those savings can be redirected into stronger benefits + wellness.

Compliance + administration:

Plan documents, substantiation, and ongoing rules matter— we handle the setup and ongoing administration so it’s run correctly.

Eligibility and results vary. Plan design, employee participation, and compliance rules determine outcomes.

What SIMRP covers (and what it doesn’t)

Eligible medical expenses (213(d))

Everyday out-of-pocket costs that qualify—copays, prescriptions, deductibles, and more (with proper documentation).

Benefits + add-ons

Eligible medical expenses (213(d))

Dental/vision, life/disability, accident, critical illness, hospital indemnity—built to fit your budget and workforce.

Wellness program

Eligible medical expenses (213(d))

Wellness program

A participatory, personalized wellness plan (HRA + coaching by qualified clinicians) with a 100-point/year participation requirement to stay compliant. Includes telemedicine access (virtual urgent care/primary care/mental health).

Learn More

What it’s not

Eligible medical expenses (213(d))

Wellness program

Not “free money.” If participation requirements aren’t met, a portion becomes taxable, and non-213(d) reimbursements are taxable.

SIMRP: a tax-advantaged way to fund health costs

A structured program that can lower taxable wages and redirect dollars toward eligible medical expenses—without changing gross pay. Results depend on eligibility, participation, and proper administration.

Pre-tax payroll deduction paired with a reimbursement for eligible 213(d) expenses
Participation requirement: ~100 wellness points per year
Not designed for individual exchange/Medicaid/Medicare—built to integrate with employer-sponsored major medical

See if your group qualifies

Serving Alabama & Tennessee

Self-Insured Medical Reimbursement Program (SIMRP)

How SIMRP Works

4-minute SIMRP overview

This video explains how SIMRP works, where the payroll-tax savings come from, and what has to be done to stay compliant.

What SIMRP is (in plain English)

SIMRP (Self-Insured Medical Reimbursement Plan)

Tax efficiency:

Better benefits:

Compliance + administration:

What SIMRP covers (and what it doesn’t)

Eligible medical expenses (213(d))

Eligible medical expenses (213(d))

Eligible medical expenses (213(d))

Benefits + add-ons

Eligible medical expenses (213(d))

Eligible medical expenses (213(d))

Wellness program

Eligible medical expenses (213(d))

Wellness program

What it’s not

Eligible medical expenses (213(d))

Wellness program

SIMRP: a tax-advantaged way to fund health costs

A structured program that can lower taxable wages and redirect dollars toward eligible medical expenses—without changing gross pay. Results depend on eligibility, participation, and proper administration.

Serving Alabama & Tennessee

Self-Insured Medical Reimbursement Program (SIMRP)

How SIMRP Works

4-minute SIMRP overview

This video explains how SIMRP works, where the payroll-tax savings come from, and what has to be done to stay compliant.

What SIMRP is (in plain English)

SIMRP (Self-Insured Medical Reimbursement Plan)

Tax efficiency:

Better benefits:

Compliance + administration:

What SIMRP covers (and what it doesn’t)

Eligible medical expenses (213(d))

Eligible medical expenses (213(d))

Eligible medical expenses (213(d))

Benefits + add-ons

Eligible medical expenses (213(d))

Eligible medical expenses (213(d))

Wellness program

Eligible medical expenses (213(d))

Wellness program

What it’s not

Eligible medical expenses (213(d))

Wellness program

SIMRP: a tax-advantaged way to fund health costs

A structured program that can lower taxable wages and redirect dollars toward eligible medical expenses—without changing gross pay. Results depend on eligibility, participation, and proper administration.

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