SIMRP Plans for School Districts, Employees & Students
SIMRP Plans for School Districts
A Self-Insured Medical Reimbursement Plan (SIMRP) works alongside qualifying existing health coverage to provide participating school employees and their eligible dependents with valuable health and wellness benefits at no added out-of-pocket expense.
Through a properly structured payroll and reimbursement process, qualifying school districts may reduce payroll tax expenses while eligible employees may experience increased take-home pay. Benefits can include tele-health, Prescription Drug support, mental health services, and preventive wellness resources. Participating districts can also create meaningful scholarship funding for students.
Tax Savings & Increase to Take-Home Pay: The SIMRP premium is deducted on a pre-tax basis from the employee's paycheck, which generates tax savings that enables participants to purchase the wellness benefits without coming out of pocket! In fact the tax savings is typically large enough to cover the wellness plan and generate a net take-home pay increase.
STRENGTHEN EMPLOYEE BENEFITS, PAYROLL TAX SAVINGS & CREATE SCHOLARSHIP FUNDING FOR STUDENTS
How a SIMRP Benefits School Districts
A SIMRP may help qualifying school districts strengthen employee compensation while improving payroll tax efficiency. When properly structured and administered, eligible medical reimbursements may be delivered on a tax-advantaged basis, and reduced taxable wages may lower the district’s FICA obligations.
Participating employees and eligible dependents receive access to no-copay tele-health, mental health support, Prescription Drug benefits, and preventive wellness resources. The Plan works alongside qualifying existing health coverage and may support employee recruitment, retention, morale, and financial well-being.
SIMRP Health & Wellness also contributes toward scholarship funding based on employee participation, creating an additional opportunity to support local students.
EMPLOYEE BENEFITS, DISTRICT SAVINGS & STUDENT SCHOLARSHIPS
How the SIMRP Is Funded
A SIMRP uses a coordinated payroll deduction and eligible medical reimbursement process. When properly structured and administered, the resulting payroll tax savings may help fund the Plan’s health and wellness benefits while supporting potential savings for the district and participating employees.
Watch the short video below for a plain-language overview of how the deduction and reimbursement process works. Actual results depend on Plan design, employee eligibility, participation, payroll structure, and applicable requirements.
LEARN HOW THE PLAN IS FUNDED FROM TAX SAVINGS
How a SIMRP Benefits School Employees and Their Families
Participating school employees and their eligible dependents gain access to valuable health and wellness benefits with no copays. These may include 24/7 tele-health, mental health support, Prescription Drug benefits, and preventive wellness resources.
Eligible employees may also experience increased take-home pay through the Plan’s coordinated payroll and reimbursement process. Actual results vary based on wages, deductions, tax circumstances, Plan participation, and other individual factors.
The SIMRP works alongside qualifying existing health coverage and is not a replacement for major medical insurance.
EMPLOYEE WELL-BEING, FAMILY BENEFITS & POTENTIAL TAKE-HOME PAY INCREASES
Understanding SIMRP Laws & Tax Codes
Review the Internal Revenue Code provisions commonly associated with properly structured SIMRP Plans, including Sections 105, 125, 213(d), 106 and 104(a)(3). This educational guide provides a general overview and is not a substitute for legal or tax advice.
Does Your School District Qualify?
A SIMRP may be appropriate for school districts with eligible W-2 employees who work full-time or meet the Plan’s full-time-equivalent requirements. Participating employees must also maintain qualifying existing health coverage.
The Plan must be properly structured and coordinated with payroll to support eligible deductions and medical reimbursements. Employee eligibility, participation, wages, existing coverage, and payroll structure can all affect projected results.
A free district payroll analysis can identify which employees may qualify and provide estimates of potential district savings, employee impact, and scholarship funding.
SIMRP ELIGIBILITY AND PLAN EVALUATION
Request a Free District Payroll Analysis
Discover which employees may qualify and review projected payroll tax savings, potential employee impact, and estimated scholarship funding for your school district. The analysis is free and carries no obligation.
Complete the form below. A SIMRP Health & Wellness Advisor will contact you to arrange a brief introductory call and explain the information needed to prepare your district’s analysis.
SAVE THOUSANDS TO MILLIONS OF DOLLARS ANNUALLY
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SIMRP Health & Wellness™ is an independent entity that provides access to educational information regarding plans utilizing federally recognized tax codes and wellness reimbursement structures that may help qualifying organizations obtain benefits through payroll tax savings. We utilize the professional services of third-party providers for the preparation, filing, and implementation of SIMRP plan documents; however, we are not owned by, affiliated with, endorsed by, or acting on behalf of such providers, the Internal Revenue Service, the U.S. Department of Labor, or the federal government. The information provided on this website is for general educational and informational purposes only and should not be construed as tax, legal, accounting, financial, or regulatory advice. We are not tax professionals, attorneys, certified public accountants, or experts in the interpretation of tax law, and we do not recommend tax strategies or make guarantees regarding tax treatment, eligibility, savings, or compliance outcomes. Individuals and organizations seeking to verify or rely upon any information presented on this website should consult with qualified tax professionals, legal counsel, payroll specialists, or other licensed advisors regarding their specific circumstances before making any financial, tax-related, legal, or benefits decisions. BENEFITS: Plan benefits, features, service providers, eligibility requirements, and availability are subject to periodic change. Before implementation or enrollment, the applicable Plan provider will outline the benefits currently available under the Plan.
