What Champ Plan is, per public materials
Champ Plan is publicly marketed as a federally-incentivized Section 125 wellness program that delivers employer payroll-tax savings and employee benefits with no out-of-pocket cost. Publicly available agent and broker materials describe Champ Plan as built on a fixed-indemnity insurance policy paired with a Section 125 cafeteria-plan election. We are not affiliated with Champ Plan and have not independently audited their plan documents - the structural description here is based on Champ Plan's publicly available marketing materials.
Side-by-side, structurally
| Aspect | EHP (SIMERP) | Champ Plan |
|---|---|---|
| Tax structure (public description) | Section 125 + 105(b) reimbursement of incurred 213(d) expenses (SIMERP) | Section 125 + fixed-indemnity insurance policy (per public materials) |
| Payment trigger | Actually-incurred Section 213(d) qualified medical expense | Fixed dollar payment on participation in a qualifying event |
| Relationship to IRS CCM 202323006 | Outside the scope of the memo | Within the scope of the memo if structured as publicly described |
| Healthcare delivery | Integrated telehealth network operated by EHP / Revive | Per public materials, telehealth via partner network |
| Plan document type | Self-insured medical expense reimbursement plan document | Per public materials, insurance-policy + Section 125 plan document combination |
Champ Plan column is based on publicly available marketing materials. Verify against the actual plan document before relying on this characterization.
Questions to ask the Champ Plan sales team
- Is Champ Plan structured as a SIMERP (reimbursement of incurred 213(d) expenses) or as a fixed-indemnity policy paired with a Section 125 election?
- How does Champ Plan reconcile its tax treatment with IRS Chief Counsel Memorandum 202323006?
- Can I review the plan document and the Summary Plan Description before signing?
- Does Champ Plan offer an indemnification or hold-harmless provision if my employer faces an IRS challenge on the structure?
- What is the documentation requirement for tax-free treatment of payments to employees - per-incurred-expense, or per-event-participation?
A vendor that can answer all of these questions in writing - with reference to the actual plan document and to IRS guidance - is a vendor worth taking seriously.
Where IRS CCM 202323006 fits
In 2023, the IRS Chief Counsel published Memorandum 202323006, which addressed fixed-indemnity wellness plans funded through Section 125 cafeteria-plan elections. The memo concluded that fixed-indemnity payments to employees under those structures should be treated as taxable wages - meaning the structure does not deliver the tax savings vendors had advertised.
The memo applies to fixed-indemnity-structured products. It does not apply to SIMERPs, which reimburse employees for actually-incurred Section 213(d) qualified medical expenses. The EHP program is structured as a SIMERP and is outside the scope of the memo. Whether Champ Plan falls within the memo's scope depends on its actual plan structure.
When Champ Plan might actually be the right choice
If your employer is small enough that the absolute-dollar audit exposure of a Section 125 indemnity structure is limited, your time horizon for the benefit is short, and you have confidence in the vendor's hold-harmless terms, the cost-of-setup differential might tilt the choice. For employers with board oversight, audit committees, public-sector exposure, or a multi-year time horizon, the SIMERP structure carries a substantially lower regulatory risk profile.
Common questions
Not in the sense that it is barred from being sold. Fixed-indemnity insurance products are legal under state insurance law and Section 125 elections are legal under federal tax law. The question is whether the combination delivers the tax outcome marketed. The 2023 IRS Chief Counsel Memorandum (CCM 202323006) took the position that fixed-indemnity payments through a Section 125 election should be treated as taxable wages - which is the structural concern most benefits attorneys cite when evaluating products in this category.
Not by name, to our knowledge. The 2023 Chief Counsel Memorandum addresses the structure of fixed-indemnity Section 125 wellness products generally. Whether any specific named product falls within the memo's scope depends on that product's actual plan documents and operating practice.
Talk to your benefits counsel and CPA - not to us. The answer depends on how your specific plan was implemented, what payroll treatments were used, and your jurisdiction. We're not the right people to advise on remediation of a structure we didn't help set up.
Trademark notice. Champ Plan is the trademark or trade name of its respective owner. We use the name nominatively to identify the product being compared. We are not affiliated with, endorsed by, sponsored by, or otherwise connected to Champ Plan or its operators.
Affiliate disclosure. We are an independent affiliate of EHP / Revive Health and earn a referral fee when employers we introduce enroll. This page is not legal advice, tax advice, or audit advice. Always consult your own benefits counsel, CPA, and (where appropriate) labor counsel before adopting or replacing any benefits program.