SIMERP
SIMERP: A Smarter Way to Offer Employee Health Benefits
At MJN Insurance Services, Inc., we help businesses explore smarter strategies for employee benefits—starting with the Self-Insured Medical Expense Reimbursement Program (SIMERP). SIMERP is an IRS-qualified program that allows employers to offer valuable voluntary health and wellness benefits at no cost to the business and with no reduction in employees’ take-home pay. It’s an innovative, tax-advantaged approach to improving employee satisfaction and reducing employer overhead.
How SIMERP Works
SIMERP gives employees the ability to allocate a monthly tax allotment toward health-related benefits such as dental, life, disability, and critical illness coverage. This program is built around key IRS codes (Sections 125, 105, 106, and 213(d)) and aligns with ACA wellness rules—making it both powerful and compliant.
For employers, the benefits are clear:
- An average payroll tax savings of $639 per employee per year
- A potential 30% reduction in workers’ compensation costs for California-based businesses
- Greater flexibility and control over how benefit plans are designed and delivered
Why Employers Choose SIMERP
Unlike traditional group benefit plans, SIMERP enables a customized and proactive approach. Employers can create healthcare solutions that better match the demographics and needs of their team—enhancing retention and workplace morale.
Because California audits workers’ compensation based on gross wages, the savings are even more significant for businesses in this state. The program is ideal for companies with 10 or more full-time employees looking to improve benefits without increasing costs.
Fast, Easy Implementation
Getting started is simple. After a brief consultation and review of your payroll setup, we’ll provide a mock payroll run to demonstrate how SIMERP affects your bottom line. The full setup process typically takes just 3–4 weeks, with no changes needed to your current payroll provider or benefits provider.
Once implemented, your employees will meet with a licensed benefits specialist who will walk them through available coverage options and answer any questions. Participation is voluntary and there is zero financial obligation on your part.
ADDITIONAL RESOURCES
A Modern Approach to Medical Reimbursement
SIMERP is more than just a tax strategy—it’s a long-term solution for attracting and retaining top talent, promoting a healthier workforce, and reducing business costs. At MJN Insurance Services, Inc., we’re here to guide you through every step of the process and ensure your program is fully compliant and optimized for success.
Contact us today to learn more about how SIMERP can work for your business.
