Roundstone, a health insurance provider specialising in self-funded medical group captive solutions, reported a $10.5 million pro rata cash distribution in July to business owners across the nation currently participating in the company’s group medical captive.
This figure represents 10% of total premiums in this captive pool. Having more information and control, the hallmark features of self-funding, helps these employers optimise health plan utilisation, which contribute to the overall savings and performance of the pool.
Compared to traditional health insurance with 100% fixed costs, Roundstone’s solution has only 15% fixed costs. Employers can leverage data-informed insights and cost-containment strategies to reduce variable spending and receive a distribution of unused premiums each year. With Roundstone, employers only pay for what they use and keep any money left in their claims account and any unspent dollars in the captive pool.
“Employers that are in our group medical captive tend to view health benefits as a strategic long-term business priority,” said Mike Schroeder, president and chief executive of Roundstone. “They understand that by being able to take control of this expense, and not shifting too much of the cost burden on employees, they can provide competitive health benefits that attract the best people. We take pride in helping them to improve their organisation’s ability to attract and retain top talent, while saving money.”
Roundstone, health, captive, cash, distribution, employers, participants