Employee Benefits That Cost Nothing: The SIMRP Approach
Every employer faces the same tension: employees want benefits, but benefits are expensive. The Kaiser Family Foundation reports average employer-sponsored family health coverage costs $23,968 per year — a number that increases 8-15% annually. For small and mid-sized businesses, this arithmetic simply does not work.
The Self Insured Medical Reimbursement Program (SIMRP) approach turns this equation on its head. Instead of requiring employer funding, the Preventive Care Benefits Program is funded entirely through pre-tax payroll restructuring — generating employer FICA tax savings instead of expenses.
What Employees Actually Receive
Every enrolled employee — plus up to 6 dependents including a spouse — receives:
- 1,000+ preventive care prescriptions at no out-of-pocket expenses, covering cholesterol, blood pressure, diabetes prevention, mental health, and more — shipped directly to their home
- Unlimited virtual urgent care — 24/7 access to licensed physicians by phone or video
- Unlimited virtual primary care visits per enrolled household member per year
- Unlimited mental health counseling visits per enrolled household member per year
- $150,000 group term life insurance with beneficiary designation
- $150,000 accidental death & dismemberment coverage
- MEC (Minimum Essential Coverage) — 3 in-person primary care visits per year, 3,500 additional prescriptions
- Hospital bill reduction — historical average of 35% in hospital bill reductions
- Whole life insurance policy with cash accumulation value accessible after year 2
- Weight health coaching — unlimited usage
- Identity theft protection
How It's Funded Without Employer Money
The program uses a Section 125 cafeteria plan to establish a $1,220 monthly pre-tax deduction. This deduction lowers the employee's taxable income, which reduces both income tax and FICA withholding. Employees realize $250-$350 per month in tax savings, which are then repurposed to fund the benefits.
A non-taxable post-tax WIMPER reimbursement of $1,220 then restores the employee's take-home pay to its original amount. The net result: employees often see a slight increase in net pay due to leftover tax savings, while receiving a comprehensive benefits package.
The Employer Upside
Employers do not contribute a single dollar. Instead, the pre-tax deduction reduces FICA-taxable payroll, saving the employer 7.65% of the deduction amount — approximately $93.33 per employee per month, or $1,119.96 per employee per year.
According to the American Journal of Preventive Medicine, every $1 invested in preventive care generates an estimated $3-$10 return in reduced healthcare costs. When the investment is $0 out-of-pocket for the employer, the return is effectively infinite.
Practical Details
- Benefits are available nationwide — virtual services are not limited to a network
- The program is compatible with HSAs and FSAs — does not interfere with existing accounts
- Participation is voluntary — employees can opt out by notifying their employer
- Personal health information is protected under HIPAA — employers see only participation data
- Dependents can be updated during open enrollment or after qualifying life events
- Benefits do not expire at year-end — they continue as long as the employee is enrolled
The Retention Factor
According to SHRM, 92% of employees consider benefits important to their overall job satisfaction. For businesses competing for talent against larger employers with established benefits packages, the PCBP levels the playing field — offering a comprehensive suite that rivals or exceeds what many large companies provide, with no out-of-pocket expenses to the business.