SIMRP: Employer-Sponsored Self-Insured Health Plans
Managing employer healthcare costs is one of the most pressing challenges businesses face today. Rising premiums, employee turnover, and the need for competitive benefits can strain a company’s bottom line. That’s where SIMRP (Self-Insured Medical Reimbursement Plan) comes in—a revolutionary, employer-sponsored self-insured health plan designed to lower costs while enhancing employee wellness.
With SIMRP, employers can enjoy significant savings on payroll taxes and workers’ compensation while offering employees access to meaningful insurance and wellness benefits. And the best part? It’s available at no net cost to your organization.
Let’s dive into how SIMRP works, its benefits, and why it’s a solution every employer should consider.
What Is SIMRP?
SIMRP is an employer-sponsored healthcare program that helps companies manage healthcare costs by combining a self-insured medical plan with a certified wellness initiative. Unlike traditional employer healthcare plans that require high premiums, SIMRP offers savings opportunities for both employers and employees.
The program is participatory, meaning all eligible employees can enroll, and it’s designed to align with your company’s financial goals while addressing employee wellness needs.
Key Benefits of SIMRP
1. Significant Payroll Tax Savings
By integrating SIMRP into your employer healthcare plan, companies can save an estimated $500 to $600 per eligible employee annually in payroll taxes. These savings stem from reducing taxable gross payroll, allowing you to allocate funds more efficiently.
For example, a small business with 25 eligible employees could save $15,000 annually—funds that can be reinvested into your organization or used to enhance employee benefits further.
2. Reduced Workers’ Compensation Costs
Lowering gross payroll through a self-insured health plan also reduces the basis for workers’ compensation premiums. Employers have reported savings of approximately 10% to 40% on workers’ comp costs after adopting SIMRP.
Moreover, some workers’ compensation insurers offer discounts to companies that implement wellness programs like those included in SIMRP. This dual benefit can substantially impact your overall savings.
3. No Net Cost to Employers
One of the standout features of SIMRP is that it’s available at no net cost to employers. All administrative fees, including those associated with the wellness program, are fully covered by payroll tax savings. This makes SIMRP an incredibly affordable and practical solution for businesses of all sizes.
4. Enhanced Employee Benefits
The SIMRP program doesn’t just save employers money; it also provides employees with access to a variety of wellness and insurance benefits at no extra cost. On average, employees participating in SIMRP receive approximately $164 per month to spend on insurance benefits.
These benefits contribute to improved employee satisfaction and retention by offering tangible value. With access to tools and resources to improve physical and mental well-being, employees are healthier, happier, and more productive.
How Does SIMRP Work?
Reduction in Gross Payroll
Payroll Tax Savings Cover Costs
Access to Benefits
Workers’ Comp Premium Reductions
Participating employees have a portion of their gross income reallocated toward wellness and insurance benefits, lowering the company’s overall taxable payroll
The reduction in gross payroll generates significant payroll tax savings, which fully offset the program’s administrative fees
Employees gain access to wellness programs and insurance benefits, all at no net cost to them or the employer.
Since workers’ compensation premiums are calculated based on gross payroll, the program results in additional savings for employers.
Employee Wellness: A Core Component of SIMRP
Employee wellness is at the heart of SIMRP. The program provides employees with access to wellness benefits that go far beyond what traditional employer healthcare plans offer. These benefits are designed to support both physical and mental well-being, creating a healthier, more resilient workforce.
Examples of wellness benefits include:
These features not only improve employee health but also reduce absenteeism and healthcare claims, further lowering costs for employers.
Why Employers Are Choosing SIMRP?
1. Cost Control and Predictability
2. Improved Employee Retention
3. Compliance with Regulations
With traditional health insurance plans, premiums often increase unpredictably year after year. SIMRP offers a sustainable alternative by lowering employer healthcare costs without sacrificing the quality of benefits provided.
Competitive benefits are a key factor in reducing employee turnover. By offering enhanced wellness and insurance benefits, SIMRP helps employers attract and retain top talent.
SIMRP is fully compliant with all federal and state regulations, ensuring peace of mind for employers. The program’s design aligns with the Affordable Care Act (ACA) and other relevant guidelines, making it a safe and effective option for businesses.
Real-World Impact: Sample Client Savings
To illustrate the potential of SIMRP, consider the case of a company with 14 employees:
- Employer Payroll Tax Savings: $7,683 per year
- Workers’ Compensation Savings: Gross payroll was reduced by $177,330, resulting in 23% savings on workers’ compensation insurance.
- Employee Benefits: Employees received an average of $164 per month for insurance and wellness benefits.
These figures highlight how SIMRP can transform a company’s approach to managing healthcare costs and employee benefits.
How to Get Started with SIMRP?
1. Submit an Inquiry
2. Consultation and Setup
3. Start Saving
- Your name and contact details
- The number of employees at your company
- Your business name and location
Once implemented, you’ll immediately begin to see savings on payroll taxes and workers’ comp premiums while your employees enjoy access to enhanced wellness benefits.
Our team will guide you through the setup process, ensuring the program integrates seamlessly with your current payroll and benefits systems.
SIMRP is a powerful tool for businesses looking to lower employer healthcare costs while enhancing employee benefits. By combining a self-insured medical plan with a robust wellness program, SIMRP delivers unparalleled value at no net cost to employers.
Whether you’re a small business looking to save on payroll taxes or a larger organization aiming to reduce workers’ comp costs, SIMRP is the solution you’ve been waiting for. Take the first step toward a healthier, more cost-effective workplace by applying for SIMRP today.
