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Common Questions

WHAT IS SIMRP?

SIMRP stands for Self-Insured Medical Reimbursement Plan.

It is a structured employer-sponsored benefit program designed to create value for both employers and employees through established IRS and ERISA frameworks.

The program combines employee benefit resources with a structured administrative framework designed to support both workforce objectives and organizational efficiency.

The Employee Retention Credit (ERC) was a temporary program created to reward employers that continued supporting and retaining employees during a specific period of time.

SIMRP is an ongoing employer-sponsored benefit program designed to operate moving forward.

While the programs serve different purposes, both demonstrate how IRS-recognized provisions can create meaningful value for employers and employees.

Yes.

SIMRP operates within established IRS and ERISA frameworks, similar to the regulatory frameworks governing many employer-sponsored benefit programs, including major medical plans and 401(k) plans.

The program is structured around long-established provisions of federal law governing employee benefits, medical reimbursements, cafeteria plans, and qualified medical expenses.

The framework incorporates:

  • IRC Section 105(b)
  • IRC Section 106
  • IRC Section 125
  • IRC Section 213(d)
  • ERISA governance
  • Formal plan documentation
  • Third-party administration
  • Substantiation requirements

As with any employee benefit program, organizations are encouraged to conduct their own due diligence and consult with their CPAs, attorneys, and professional advisors when evaluating the program.

No.

SIMRP is designed to complement existing employee benefit programs.

It is not intended to replace major medical insurance coverage or disrupt an organization’s current benefit structure.

No.

SIMRP is designed to operate alongside existing insurance and benefit relationships.

Organizations typically maintain their current broker relationships and existing insurance programs.

SIMRP is designed primarily for organizations with eligible W-2 employees.

Organizations with some 1099 contractors may still qualify; however, the program applies only to eligible W-2 employees.

A preliminary review can help determine whether SIMRP may be appropriate for your organization.

The review process is designed to be straightforward and confidential.

Generally, no.

Preliminary reviews can typically be conducted without employee names, Social Security numbers, or other personally identifiable information.

The analysis is generally based on census and demographic information rather than individual employee identities.

This allows organizations to explore the program while helping protect employee privacy and confidentiality.

Most employers find that implementation requires only a few hours of HR and Payroll involvement spread across the implementation process.

After implementation, ongoing administration is generally limited to routine employee status changes such as:

  • New hires
  • Employee terminations
  • Standard payroll updates

In many organizations, ongoing administration is measured in minutes rather than hours during a payroll cycle.

In most cases, yes.

SIMRP is designed to integrate with many payroll systems, including providers such as:

  • ADP
  • Paychex
  • UKG
  • Paylocity
  • Paycom
  • Gusto

and numerous regional payroll providers.

SIMRP is supported through independent third-party administration.

Administration may include:

  • Plan documentation
  • Participant enrollment
  • Eligibility administration
  • Substantiation review
  • Compliance oversight
  • Ongoing plan support

This structure helps reduce administrative burden on employers while supporting consistent plan operation.

Capitol Group

Depending upon plan design and eligibility, employees may have access to resources such as:

  • Amaze Health services
  • Healthcare navigation assistance
  • Patient advocacy services
  • Mental health resources
  • Wellness tools and education
  • Prescription savings through Rx Valet
  • Hospital fixed indemnity benefits through Encompassing Health
  • Family support resources

See the Employee Benefits section for additional information.

Amaze Health is a healthcare support platform that provides employees and eligible family members with access to virtual care, patient advocacy, healthcare navigation assistance, mental health resources, and related support services.

Additional information is available in the Employee Benefits section.

Encompassing Health is a health and wellness program that may include hospital fixed indemnity benefits, prescription savings resources, healthcare navigation tools, wellness resources, and employee support services.

Additional information is available in the Employee Benefits section.

Absolutely.

Organizations are encouraged to involve their CPAs, attorneys, consultants, and other professional advisors as part of their evaluation process.

The CPAs & Advisors section contains additional resources, including the CPA Journal article.

The savings belong to the company.

Just as organizations receiving Employee Retention Credit funds determined how those resources would be utilized, organizations participating in SIMRP program determine how best to use any resulting savings.

The company decides how those savings are used.

Organizations may choose to:

  • Strengthen operations
  • Support growth initiatives
  • Invest in employees
  • Improve financial stability
  • Build reserves
  • Reduce debt
  • Pursue other organizational objectives

The decision belongs to the employer.

The next step is a preliminary review to determine whether SIMRP may be appropriate for your organization.

The review is designed to be confidential, straightforward, and respectful of organizational privacy.

Additional information can be found on the Contact Us page.

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