Section 125 Plans for Home Health Care Agencies
For employers with 50+ employees
Home health agencies are one of our largest groups of clients. Caregivers are hourly, in high demand and hard to keep, and margins are thin. A Section 125 plan lowers your payroll taxes and raises your caregivers’ take-home pay at the same time.
Why Section 125 Fits Home Health Care
- Thin margins: Payroll is the biggest cost in home health. Lower payroll taxes go straight to your bottom line, from the first updated payroll run.
- Caregiver retention: Higher take-home pay with the same gross pay helps you compete for caregivers without raising wages.
- Care that fits their schedule: Unlimited virtual care with no copay covers primary care, urgent care, behavioral health and dermatology. Virtual primary care also covers their family members.
- No extra work for your office: Every employee is automatically enrolled and free to opt out, so there is no enrollment drive to run.
What the Program Delivers
- Employer savings: most employers save $650–$850 per employee per year in payroll taxes
- Employee take-home pay: typically rises about 4–6%, with the same gross pay
- Cost: no setup fee, no minimum contract, and no out-of-pocket cost — the fee is paid from the savings
- Enrollment: every employee is automatically enrolled and free to opt out
- Existing coverage: your current health plan stays exactly as it is
Estimated Annual Savings in Home Health Care
| Workforce | At $650/employee | At $850/employee |
|---|---|---|
| 50 employees | ~$32,500/yr | ~$42,500/yr |
| 120 employees | ~$78,000/yr | ~$102,000/yr |
| 250 employees | ~$162,500/yr | ~$212,500/yr |
Estimates use $650–$850 in employer payroll tax savings per employee per year. Calculate your own number.
Getting Started
The program works with all major payroll systems and alongside your existing health plan.
Setup takes 30–60 days in five steps, with no setup fee and no minimum contract. The program requires at least 50 employees and is available in 40 states (see state availability).
Frequently Asked Questions
Does a Section 125 plan work for a home health agency?
Yes. Home health agencies are among our largest client groups. The program requires at least 50 employees.
Will it change the health insurance we already offer caregivers?
No. It is supplemental coverage that sits on top of your existing health plan.