At the core of our approach is a simple but powerful mission: expand employee benefits while reducing employer taxes. And the reason this program exists is because the current healthcare system is overloaded, inefficient, and increasingly costly for both employers and employees.
This year alone, Americans will spend $4.9 trillion on healthcare. Nearly $2 trillion of that will be funded directly by taxpayers through taxes and federal subsidies. Despite this staggering spend, access to care is still slow, fragmented, and full of waste. Employees wait weeks for appointments, employers deal with constant premium increases, and the system grows more bloated every year.
That’s why there’s a major push to redirect lower-level care away from the overloaded healthcare system and toward more efficient, cost-effective solutions. One of the most effective tools to do this is a Self-Insured Medical Expense Reimbursement Program (SIMRP).
SIMRPs were created in the early 2000s, but it wasn’t until the Affordable Care Act that their scope and impact significantly expanded. Today, SIMRPs operate as a Section 125 pre-tax deduction, similar to the way 401(k)s, HSAs, and employer-sponsored benefits are handled. In essence, a SIMRP is a plug-in benefit structure within a company’s existing Section 125 cafeteria plan.
This structure allows employers to legally reduce taxable income at the payroll level and redirect those savings into meaningful employee benefits—without adding cost for the company or the employee. With more than a dozen integrated IRS codes and compliance safeguards built into the program, everything operates within established federal guidelines.
In a system where employers are paying more every year and employees are receiving less value, solutions like SIMRPs are becoming essential. They allow businesses to offer stronger benefits, reduce their tax burden, and help employees access care faster and more affordably—all while easing pressure on the traditional healthcare infrastructure.
The healthcare system is broken, but your benefits strategy doesn’t have to be.
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