Is a SIMRP a Grant?

How the SIMRP Helps Business

Would your company or school benefit from extra funding? A grant can certainly provide a boost, but applying takes time, and there’s no guarantee you’ll be selected. What many organizations don’t realize is that the Federal Government already provides a way for businesses and non-profits—including schools and universities—to capture funds from their payroll process every year. Think of it as a recurring “grant” that comes straight from your own accounting.

Through specific provisions in the tax code, employers can realize significant savings, provided a portion is used to cover approved medical expenses. This opportunity comes in the form of a Self-Insured Medical Reimbursement Plan (SIMRP)—a program designed to save money while directly benefiting employees. Let’s explore how this plan can make a lasting difference for your organization.

1. Significant Tax Savings
Employers can deduct contributions and reimbursements made through the plan. Employees don’t pay income tax on qualifying reimbursements (when done correctly under IRS rules). This lowers payroll tax liability for both the company and employees.

2. Employee Attraction & Retention
Offering health-related benefits shows employees that the business cares about their well-being. It makes the company more competitive when hiring and helps keep valued employees.

3. Cost Control & Flexibility
Unlike traditional insurance premiums, self-insured reimbursement plans allow employers to only pay for actual claims, not projected ones. Businesses can customize which expenses are reimbursable (within IRS guidelines), making the plan more efficient.

4. Improved Employee Wellness
Employees get reimbursed for out-of-pocket medical costs, which encourages them to seek preventive care and stay healthier. Healthier employees mean fewer absences and better productivity.

5. Community & Culture Benefits
Businesses that support employee health build a stronger, more loyal workplace culture. Employees appreciate the transparency and fairness of such benefits.

A SIMRP helps businesses save on taxes, reduce healthcare costs, attract and retain talent, and improve employee wellness—all while keeping control and flexibility over benefit expenses. A quick call with a SIMRP Wellness Broker can reveal how your organization can benefit starting today!