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A compliance-focused benefits structure for employers

Carrier-agnostic benefits review without changing your core health plan

Section 125/105 Hybrid Model

A compliance-focused way to review how your existing benefits, employee contributions, and eligible reimbursement arrangements may work together.

MoTek helps employers evaluate whether their current benefits structure can be improved without changing the core health plan or carrier relationship. The review may include Section 125 plan design, eligible medical expense treatment under Section 213(d), and Section 105 reimbursement concepts, when appropriate.

Learn About the Section 125/105 Model

Review Your Benefits Structure with Confidence

MoTek helps employers take a closer look at how their existing benefits, employee contributions, and eligible reimbursement arrangements are currently structured.

The goal is not to change your core health plan or force a new carrier.
The goal is to evaluate whether your current benefits design can be better coordinated through a compliance-focused Section 125/105 hybrid approach.

This review may include your Section 125 plan design, employee benefit elections, eligible medical expense treatment under Section 213(d), and Section 105 reimbursement concepts, when appropriate.

What the Review May Cover

  • Existing Section 125 plan structure
  • Employee benefit elections and contribution flow
  • Eligible medical expense categories under Section 213(d)
  • Section 105 reimbursement concepts, when appropriate
  • Plan documentation and administration considerations
  • Coordination with payroll, tax, legal, and compliance advisors

MoTek helps employers understand the structure before making decisions, so the review is based on how the benefits program would actually operate — not just a theoretical illustration.

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Section 125/105 Hybrid Model

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Schedule a Structure Review

How the Hybrid Model Is Reviewed

A Section 125/105 hybrid review looks at how three benefit-related areas may work together under the employer’s plan design: employee benefit elections, eligible medical expense definitions, and reimbursement arrangement concepts.

The review is not based on a one-size-fits-all assumption. MoTek looks at how the structure would operate in practice, including plan documents, employee contribution flow, carrier premium records, reimbursement administration, and compliance review.

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The goal is to understand whether the structure can be documented, administered, and explained clearly before any recommendation is made.

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Three areas of review:

  • Section 125: Reviews how employee benefit elections and pre-tax contribution arrangements are documented.
  • Section 213(d): Helps identify the types of medical care expenses that may be considered eligible under applicable rules.
  • Section 105: Reviews whether an employer reimbursement arrangement may be appropriate under the plan design.
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Learn About the Section 125/105 Model

The Section 125/105 Hybrid Model reviews how an employer’s benefits structure may coordinate across three areas:
Employee benefit elections, eligible medical expense definitions, and reimbursement arrangement concepts.

This is not a payroll product, tax-savings guarantee, or automatic reimbursement program. It is a structured review of how the plan design may operate when properly documented, administered, and reviewed with qualified advisors.

The Three Parts Work Together

The Section 125/105 Hybrid Model reviews how employee elections, eligible medical expense rules, and reimbursement concepts may coordinate under the employer’s plan design.

Section 125

Reviews cafeteria plan elections and pre-tax employee contribution arrangements, including how eligible premium amounts may be handled under the plan.

Section 213(d)

Helps identify medical care expenses that may be considered eligible under applicable rules.

Section 105

Reviews whether an employer reimbursement arrangement may be appropriate, documented, and administered under the plan design.

Each part must be reviewed against plan documents, payroll setup, eligibility, substantiation, and applicable advisor guidance.

The Three-Step Reimbursement Review

A structured review helps evaluate how the Section 125/105 model may operate in real employer administration.

1
Confirm the Eligible Premium Basis

The review considers the full eligible premium basis connected to the employer’s medical, dental, and vision coverage. Any amount used in the model must align with plan documents, active plan participation, and applicable rules.

2
Review Group Pricing Methodology

If a group is age-rated, the review may consider whether a composite or group-average pricing approach is appropriate for modeling and administration. The methodology should be consistent across eligible employees and supported by documentation, nondiscrimination testing, and advisor review.

3
Support the Model with Documentation

The review may include payroll records, benefit election records, carrier premium billing or payment records, reimbursement administration records, utilization or claims data, MEPS benchmarking where appropriate, and annual nondiscrimination testing.

Documentation and compliance review are essential at every step.

Ongoing Compliance Review

A Section 125/105 hybrid structure should be reviewed before implementation and monitored over time. This may include documentation review, employee communication review, annual nondiscrimination testing, and coordination with payroll, tax, legal, and compliance advisors.

The goal is to understand how the model may operate in real employer administration, not just as a theoretical illustration.

  • MoTek clients may access a payroll modeling environment that provides a side-by-side comparison of current payroll and a modeled hybrid structure.
  • The model may include estimated Section 125 deduction values, Section 105 reimbursement values, payroll-entry references, and before-and-after impact summaries.
  • All values are modeled estimates for planning and review only. Final results may vary based on payroll setup, employee elections, plan documents, timing, tax treatment, and employer-specific configuration.
  • MoTek provides the modeled comparison. The employer reviews the values. The employer’s payroll provider remains the final payroll authority.

Modeled estimates for planning and review only. Your payroll provider remains the final authority.

A Smarter Way to Review Benefits

Most benefit reviews stop at premiums, carrier quotes, and
renewal options.

MoTek looks deeper.

We review how your existing benefits program, payroll flow, employee elections, plan documents, and reimbursement concepts may work together under a Section 125/105 hybrid model.

The goal is not to change your health plan unnecessarily. The goal is to help you understand whether the structure around your current benefits can be reviewed, documented, and coordinated more effectively.


For employers, this creates a clearer view of what is already in place, what may be possible, and what should be reviewed before any decision is made.


MoTek provides education, structure review, and modeled comparison support.

Start with a Structure Review
A review is educational and fact-specific. Final recommendations depend on plan documents, payroll data, employer-specific details, and appropriate advisor review.

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