How to Save Money in a Fully Insured Plan Without Sacrificing Employee Benefits

Saving money on fully insured employee benefits plans often feels like a zero-sum game. Employers typically face tough options: reduce benefits, shift costs to employees, or switch insurance carriers—each choice creating tension between managing costs and supporting your workforce. But there’s a better path: enhancing your existing benefits with proactive employee engagement and OnSite Health services. These services are a proven method for improving outcomes and saving money without sacrificing quality of care.

Understanding Fully Insured Plans: The Approach and Its Limitations

A fully insured plan is a common health benefits setup where an employer pays fixed premiums to an insurance carrier, which assumes financial risk for employee claims. Premiums are set based on expected claims costs plus insurer overhead and profit.

Common cost-saving tactics in fully insured plans include:

• Lowering employee benefits coverage
• Increasing employee premiums, deductibles, or copays
• Shopping for new carriers in hopes of better rates

However, these options often backfire by:

• Worsening employee morale and retention due to reduced benefits or higher out-of-pocket costs
• Creating disruption and administrative headaches when switching carriers
• Continuing to drive rising premiums without addressing underlying health needs

The Fundamental Flaws in the Fully Insured Model

The fully insured model faces key challenges:

• Misaligned incentives: Employers want to control costs and improve employee health; insurers seek to manage risk and maintain profitability.
• Limited transparency: Employers often lack detailed claims data, making it hard to understand cost drivers or target interventions effectively.
• Reduced flexibility: Fixed premiums and benefit designs limit opportunities to innovate or address employee wellness proactively.

For small and medium-sized businesses—a core focus of the OnSite Health team—these limitations make it harder to balance costs with quality employee benefits.

Exploring Options: Fully Insured or Self-Funded—and How OnSite Health Adds Value

Let’s be clear, OnSite Health does not design or administer insurance plans. Instead, we specialize in partnering with employers to enhance existing benefits through onsite and virtual health services that reduce costly medical claims.

Our approach includes:

• Onsite primary care and nursing services that address health issues early and reduce preventable emergency visits
• Preventive care and wellness programs that improve employee health and engagement
• Integrated support for HR and safety compliance that streamlines administrative burdens

By embedding care directly in the workplace—where your employees are, OnSite Health helps maximize the value of your existing health benefits, improving outcomes and lowering overall costs, regardless of your plan’s funding structure.

This on-the-ground engagement “pays back” by amplifying the impact of your current benefits, without requiring you to change insurers or plan funding models.

Learn more about how OnSite Health’s services complement your benefits strategy on our Services page.

Practical Steps Employers Can Take Today

To unlock these benefits:

• Conduct a health engagement assessment to identify opportunities for OnSite or virtual health programs.
• Align employee wellness initiatives with existing benefits to reduce costly gaps in care.
• Engage employees through education and accessible preventive services to foster a culture of health.
• Partner with trusted providers like OnSite Health to bring customized care solutions right to your workplace.

Enhance What You Have for Better Outcomes and Savings

Traditional fully insured plans and Self-Insured plans present challenges in balancing cost and quality benefits. But the solution doesn’t lie solely in changing insurance plans—it lies in how you engage and care for your employees every day.

OnSite Health offers a proven way to enhance your existing benefits by delivering personalized, convenient, and proactive health services that reduce costs and improve employee well-being.