For Brokers — Elevate EBS
Elevate EBS · For Brokers
The Compliance-First PCMP

Sell a program you can actually stand behind.

The §125/§105 structure is powerful — and this space is crowded with programs that push it past the legal line. Elevate EBS is built the other way: fully documented, compliance-first, and structured so you can put your name on it without putting your license at risk.

Why brokers work with us

Recurring revenue on a product that’s easy to say yes to.

Recurring PEPM income

Earn a per-employee-per-month commission on every enrolled employee — recurring monthly, for as long as the group stays enrolled. Not a one-time referral fee.

We handle everything

Enrollment, plan documents, compliance, billing, and ongoing service run through us. You make the introduction; we carry the administrative and compliance load.

An easy employer yes

The PCMP nets to zero cost for the employer and raises participating employees’ take-home pay. A benefit that pays for itself is a short conversation to close.

Compliance you can defend

Built on established §125 and §105 tax law with real plan documents and a non-fiduciary structure. When a client’s CPA asks the hard questions, the answers hold.

How it works

You refer. We run it. You get paid.

Step 01

You refer

Introduce the employer. That’s the extent of what’s required of you — no administration, no compliance burden on your side.

Step 02

We run it

We handle the employer and employee conversations, enrollment, plan documents, compliance, and every month of service after.

Step 03

You get paid

You earn recurring PEPM on every enrolled employee, month after month, for as long as the group stays on the program.

Know what you’re being sold

Six things a compliant PCMP does not do.

This structure is legitimate when it’s built correctly — but many programs in this space cut corners that fail the legal standard. Here’s what a compliant PCMP does not do. If a program you’re being offered does any of these, ask hard questions before you put your name on it.

×1. Fund life insurance through the plan.
What some programs doLayer a permanent or whole life policy — often marketed with “cash value growth,” sometimes as group whole life — into the plan, paid for out of the tax savings.
Why it’s non-compliantLife insurance premiums aren’t medical care under §213(d), so they can’t be reimbursed tax-free under a §105 plan. And cash-value life is a form of deferred compensation, which a §125 cafeteria plan is expressly prohibited from offering (§125(f)). A “group” label doesn’t fix it — the narrow exception under §79 is for capped group term life, not permanent cash-value coverage.
What we doReimburse only actual §213(d) medical care. No life insurance, no cash-value products, nothing building an investment balance inside the plan.
×2. Use a MEC plan to fake the coverage requirement.
What some programs doA §105 SIMRP is only valid if each participant is enrolled in qualifying group health coverage. To satisfy that cheaply, some programs enroll employees in a bare Minimum Essential Coverage (MEC) plan.
Why it’s non-compliantA thin MEC plan does not meet the coverage requirement the law sets for a §105 SIMRP. It fails the legal standard — which renders the entire arrangement non-compliant, exposing every dollar of tax treatment the program produced.
What we doWe satisfy the coverage requirement with a real, qualifying solution — structured at no cost to the employer and, in most cases, little to no cost to the employee. Handled case by case, so the §105 structure actually meets the legal standard it’s built on.
×3. Gate eligibility by income.
What some programs doRequire employees to earn above a set salary threshold to participate.
Why it’s non-compliantCarving out lower-paid workers tilts eligibility toward higher earners — exactly the pattern §105(h) nondiscrimination rules exist to catch in a self-insured medical reimbursement plan. Fail that testing and the tax-favored treatment is stripped for the highly compensated participants the plan was meant to benefit.
What we doOffer eligibility on nondiscriminatory terms, built to pass §105(h) testing — no income floors that skew the group.
×4. Scale the price to each person’s tax savings.
What some programs doSet the fee to absorb each employee’s entire tax savings — so a higher earner is charged more and a lower earner less, for the exact same program.
Why it’s non-compliantThat charges different employees different amounts for identical coverage, with the difference driven by compensation. A §105(h) self-insured plan must provide benefits on nondiscriminatory terms — not just in who’s eligible, but in the terms participants actually receive. Pricing the same benefit by income fails that benefits test.
What we doCharge a consistent, flat management fee — the same for every participant, regardless of income. Everyone pays the same for the same benefit.
×5. Guarantee a savings number.
What some programs doAdvertise a specific, guaranteed dollar figure — “$X saved per employee,” “$X per paycheck.”
Why it’s a red flagTax savings depend on each person’s income, filing status, and withholding — they vary by individual. Presenting a fixed, guaranteed figure misrepresents a variable outcome, a claim no honest program can stand behind, and it invites scrutiny of everything else the program asserts.
What we doPresent savings as estimates that vary by circumstance, and show the math rather than promise a number.
×6. Auto-enroll employees without their consent.
What some programs doAutomatically enroll every employee into the PCMP and its salary-reduction deduction, putting the burden on the individual to opt out after the fact.
Why it’s non-compliantA §125 cafeteria plan runs on the employee’s affirmative election — the voluntary choice to reduce salary in exchange for a qualified benefit. Enrolling someone into that salary reduction by default, without their election, cuts against the requirement the plan’s pre-tax treatment depends on, and changes their pay and withholding without their consent.
What we doEnroll only employees who actively choose to participate, after they’ve seen exactly what the program does and what it means for their paycheck. Affirmative election, every time — never by default.

Why this matters — one failure sinks the whole plan.

These aren’t technicalities. A §105/§125 program has to be compliant in full — if any single piece fails the legal standard, the entire arrangement is non-compliant, not just the piece that broke. When that happens, the tax savings weren’t real: employees can be required to pay back taxes they already saved and likely already spent, and the broker who put the program in front of them is standing in the fallout. Your license and your client relationships are on the line. That’s exactly why we don’t work to a “close enough” standard.

Let’s talk

See how the program — and the economics — work for your book.

A short call walks you through the structure, the compliance foundation, and what you earn on every enrolled employee.

Schedule a call →

Elevate EBS (Employer Benefits Solutions) · Houston, TX. The PCMP is a preventative care management plan structured under IRC §125 and §105. Elevate EBS acts as a non-fiduciary service provider; the participating employer is the Named Fiduciary and Plan Administrator. This material is for informational purposes and is not tax or legal advice. Tax outcomes vary by individual circumstance.

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