$72 million of unspent premium returned to employers in its group medical captive since inception – evidence of a health insurance solution aligned to an employers’ best interests
LAKEWOOD, Ohio, April 11, 2023 /PRNewswire/ — Roundstone, a leading health benefits captive providing self-funded solutions to small and midsize businesses, is proud to celebrate 20 years of innovation, growth, and a commitment to a better life for all in 2023. Over the past two decades, Roundstone has achieved a 30% CAGR (compounded annual growth rate), while remaining an independent, family-owned organization, focused on serving employers with affordable and high-quality employee health benefits.
What began as an entrepreneurial vision of creating a better life for his family and for his employees for Roundstone’s founder and president Michael Schroeder, has evolved into a thriving 140-person company with more than 700 employers participating in its group captive. Throughout, Roundstone’s prioritization of the well-being of people has remained a guiding light.
Roundstone was founded in 2003 with the mission of creating a better alternative for small and midsize businesses to manage their health benefits. As pressure mounted to provide better funding models for healthcare coverage, Roundstone responded with innovation, growing from a stop-loss reinsurer into the first medical group captive of its kind. The captive was a fresh new approach to self-funding. It allowed smaller businesses (25-1000 employees) to take advantage of the benefits of self-funded insurance that previously only larger enterprises could enjoy: flexibility, control, transparency, and savings. By banding smaller companies together in a shared-risk community, they were protected from volatility and could be rewarded with extra savings, which could then be invested back into the business.
Captive participants only pay for the healthcare they use and receive a distribution of unspent captive premium dollars each year. Since its inception, Roundstone has distributed $72 million back to captive participants – money that, in the fully insured model, would be pocketed by the insurance carriers.
As a member of the captive, Roundstone has successfully self-funded its own employees’ health insurance without raising cost-share to employees for 8 years running – a competitive edge for hiring and retention. The company also recognizes the contributions of employees to its success with an annual profit-sharing bonus. This year, Roundstone employees received $2.1 million collectively, bringing the total profits shared since 2003 to nearly $11 million.
“We are thrilled to celebrate our 20th anniversary and the accomplishments that we have achieved over the years,” said Michael Schroeder, President of Roundstone. “Our success is a testament to the dedication of our team and our growing network of advisor partners who share our employer-centric values. We will continue to innovate our solution and advocate for affordable, high-quality healthcare and a better life for all.”
To anchor a new era of growth, Roundstone is building a new, 70,000-square-foot headquarters in the nearby city of Rocky River, OH.
To learn more, register for the Medical Captive Forum on May 18-19 in Chicago, IL, Roundstone’s free annual educational event for employers, advisors, and healthcare solution providers.
Roundstone is an innovative insurance organization founded in 2003 with a vision of giving small and mid-sized businesses a proven strategy for affordable employee health insurance. Our self-funded group captive solution delivers high-quality, affordable healthcare and returns savings back to the employers and employees – a win-win all around. Roundstone is headquartered in Lakewood, Ohio with representatives throughout the United States. Stay connected with us on our blog, LinkedIn, and Twitter (@captiveinsurer).