Prescription Coverage With a Section 125 Plan
Help Employees Afford Medicines Through Pre-Tax Benefits
Prescription medicines are a regular part of life for many employees and their families. But without support, the cost of even basic drugs can drain their budgets. Prescription Drug Coverage with Section 125 Plans changes that by making it easier and cheaper for workers to get the medications they need.
When you offer prescription coverage through a Section 125 Plan, employees can pay for eligible prescriptions using pre-tax dollars. This lowers their taxable income and stretches their healthcare dollars further. It also helps employers save on payroll taxes — without raising salaries or cutting into budgets.
Here we help businesses set up IRS-compliant Section 125 Plans that include real prescription benefits employees value and use.
How Prescription Drug Coverage Works?
When an employee enrolls in a Section 125 Plan with prescription drug benefits, they can set aside part of their paycheck before taxes are taken out. This money is then used to pay for covered prescriptions at participating pharmacies.
Our plan designs offer:
Access to 250+ essential medications
Low or zero copays for most common drugs
Pre-tax savings that lower out-of-pocket costs at the pharmacy counter
Because the money used for prescriptions is not taxed, employees can save an average of 20 to 40 percent on their medication expenses just by using the plan.
Prescription Drug Coverage through Section 125 Plans gives employees a direct way to manage ongoing conditions like asthma, diabetes, high blood pressure, infections, and more — without worrying about whether they can afford their next refill.
Why Pre-Tax Prescription Coverage Matters
Prescription drugs are often one of the biggest health-related costs employees face. Without pre-tax benefits, workers pay for medications with taxed income, meaning they are effectively spending more than they need to.
Adding Prescription Drug Coverage inside a Section 125 Plan:
Reduces the real cost of medicine for employees
Encourages better treatment adherence for ongoing conditions
Improves overall financial wellness without the need for salary raises
Gives employers a competitive edge in today’s benefits-driven hiring market
Employees appreciate it immediately — they see the savings in every pharmacy visit.
Why Offer Prescription Coverage to Your Employees?
Offering Prescription Coverage through a Section 125 Plan is a great way to show your employees that you care about their health and well-being. In today’s world, prescription medications can be expensive, and many employees struggle to afford them without assistance. By offering this benefit, you not only help your employees manage their healthcare costs, but you also make your company more attractive to potential hires.
Here are a few reasons why Prescription Coverage is a valuable benefit to offer:
1. Helps Employees Save on Medication Costs
Prescription medications can add up quickly, especially for employees with chronic health conditions or families who require regular prescriptions. Offering Prescription Coverage through a Section 125 Plan helps employees save money by reducing the cost of their medications through pre-tax deductions. This means employees can use their money for other expenses and not have to worry about the high cost of prescriptions.
2. Improves Employee Satisfaction and Retention
When employees feel like their employer cares about their health and well-being, they are more likely to stay with the company. Prescription Coverage is an important benefit that can help improve employee satisfaction. When employees don’t have to worry about the costs of their medications, they are less stressed and more focused at work. This can also lead to improved retention rates, as employees appreciate the effort you’ve made to support their health.
3. Reduces Your Business’s Tax Liability
By offering Prescription Coverage through a Section 125 Plan, your business benefits from lower payroll taxes. Since employees are paying for their prescriptions with pre-tax dollars, their taxable income is reduced, which means your business pays less in payroll taxes. Over time, these savings can add up and be reinvested back into your business.
Start Offering Smarter Prescription Benefits
With Prescription Drug Coverage through Section 125 Plans, helping your team afford the medicines they need has never been easier — or smarter. Section 125 Solutions LLC makes setup simple, fast, and fully compliant with IRS rules.
If you are ready to strengthen your employee benefits while boosting payroll tax savings, let’s connect today.
Talk to Section 125 Solutions LLC and bring affordable prescriptions to your team.
Unlock Your Savings with Our Calculator
Maximize your savings and offer valuable benefits to your team with Prescription Coverage through a Section 125 Plan. Here’s why you should act now:
Lower payroll taxes while offering tax-free benefits to employees.
Simple, IRS-compliant plans that are easy to set up.
Trusted providers to help you manage and maintain the plan.
Enhance employee satisfaction with affordable prescription coverage.
Start offering Prescription Coverage today—use our Savings Calculator to see how much you could save! Contact 125 Plans to get started.
Book Your Consultation
Explore how Section 125 plans could save your business over $1,000 per W-2 employee each year. Book a free consultation to see how much you could be losing by not having one.
By submitting this form, you agree to receive communications via phone, text message, and email. Message and data rates may apply. Your information may be shared with trusted third-party service providers solely for the purpose of helping you explore Section 125 benefit options. You also agree to our Privacy Policy and Terms of Service.
(602) 737-3306
Success Stories: See What Company Employees Have To Say About 125 Plans
4.7 Customer Reviews
