Self-Insured Medical Reimbursement Program (SIMRP)

How SIMRP Works

The Self-Insured Medical Reimbursement Program (SIMRP) is an IRS-compliant strategy that provides tax-advantaged health funding through pre-tax wellness deductions and reimbursements. This approach not only reduces payroll taxes but also offers meaningful employee benefits, including essential medical and wellness programs. Employers can save approximately $550 per employee annually, enhance employee retention, and provide valuable wellness services such as telehealth and mental health support, all while preserving employees’ take-home pay. SIMRP leverages a Section 125 salary reduction combined with after-tax reimbursements linked to qualified 213(d) medical care, seamlessly integrating with employer-sponsored major medical coverage.

Self-Insured Medical Reimbursement Program (SIMRP)

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:

A pre-tax structure can significantly enhance employee benefits by reducing payroll taxes for both the employer and employees, particularly through options like a medical reimbursement program and other tax-advantaged health funding.

Better benefits:

Those savings can be redirected into stronger employee benefits and wellness programs, such as a medical reimbursement program or other tax-advantaged health funding options.

Compliance + administration:

Plan documents, substantiation, and ongoing rules related to employee benefits matter— we handle the setup and ongoing administration of your medical reimbursement program so it’s run correctly, ensuring effective tax-advantaged health funding.

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))

Where the payroll-tax savings come from is essential to understanding how dollars get redirected into employee benefits and wellness programs. This includes aspects like the medical reimbursement program, which utilizes tax-advantaged health funding. Additionally, it’s important to consider what admin and compliance look like in real life.

Benefits + add-ons

Eligible medical expenses (213(d))

Our employee benefits package includes dental/vision, life/disability, accident, critical illness, and hospital indemnity options—all designed to fit your budget and workforce. Additionally, we offer a medical reimbursement program and tax-advantaged health funding to further support your team's needs.

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. This plan is an excellent addition to your employee benefits, as it includes telemedicine access (virtual urgent care/primary care/mental health) and can be paired with a medical reimburse

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What it’s not

Eligible medical expenses (213(d))

Wellness program

Not 'free money.' If participation requirements for the medical reimbursement program aren't met, a portion becomes taxable, and non-213(d) reimbursements are taxable, impacting your tax-advantaged health funding options.

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.

See if your group qualifies

Smarter Coverage. Multiple Carriers. One Local Agent

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.

Self-Insured Medical Reimbursement Program (SIMRP)

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.

Smarter Coverage. Multiple Carriers. One Local Agent

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.

Self-Insured Medical Reimbursement Program (SIMRP)

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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