August 18, 2021

Why Choose Roundstone for Group Captive Insurance?

businessmen hand shake

Of the many expenses companies incur as part of doing business, health insurance is one of the biggest. To find and retain a solid pool of workers, businesses typically offer comprehensive health insurance coverage to keep their employees happy and healthy. But such insurance plans can also make a huge dent in a business’s bottom line.

Roundstone offers small and mid-sized businesses the opportunity to reduce these costs by insuring their employees with self-funded group captive insurance.

We know there are other captive insurance programs out there, so why choose Roundstone?

At Roundstone, we do things differently, and we’ve been doing it for over 10 years. We are deeply committed to advocating for you — the small to mid-sized business looking for a better alternative to traditional high-cost health insurance.

As part of that commitment, we took a long look at what other insurance companies are doing — and we do the opposite.

Here’s what having Roundstone on your side means for you and your company:

1. Quality Affordable Health Insurance For All

In 2020, the average annual insurance premium for employer-provided single employee coverage was $7,470, and family coverage was a whopping $21,342, according to the 2020 Kaiser Family Foundation (KFF) 2020 Employer Health Benefits Survey. Of those figures, the employer’s contributions were $5,588 and $15,754, respectively.

The KFF survey also found that insurance premiums increased 55% over the past decade. At the same time, employee earnings have only increased 26%. That’s a big gap and one that businesses help bridge for employees.

Many companies are responding to rapidly increasing costs by shifting more of the premium increases onto their workers in the form of higher premiums, co-pays, and deductibles. As a result, employee health insurance responsibility has outpaced wage increases, and many workers are bringing home less pay each year.

Unfortunately, this practice can minimize the ability of organizations to recruit and retain good talent. Many businesses are finding that their employees are unwilling or unable to take on any more of the cost burden.

Roundstone’s self-funded captive insurance groups are the solution for many small and mid-sized companies. We guarantee that you will save money. Our captive participants save as much as 20% in healthcare costs each year while providing their employees better coverage with less out-of-pocket expense.

2. Freedom of Choice

At Roundstone, we know that one size does not fit all. So, what does that mean for you?

First, it means that you have control over the coverage plan that’s best for your business. If you want to work with a particular third-party administrator (TPA) or cost-containment solution, we will work with you to make that happen.

Secondly, with a captive group plan managed by Roundstone, your company will have control and insight into your plan’s true costs. You will be able to see how every healthcare dollar is spent and where savings can be found.

For example, prescription drugs and primary care are typically areas with high spend. Your company has the freedom to implement innovative wellbeing and cost containment programs designed to improve the health of workers and thereby reduce pharmacy and utilization costs.

3. Full Disclosure

If you’ve ever tried to get claims data from your insurance carrier, you know that it’s nearly impossible. Yet it’s critical that companies know how and where their insurance dollars are being used so they can course-correct as needed to control costs.

With Roundstone, your data belongs to you. Employers participating in Roundstone’s group medical captive receive direct access to data analytics presented in the CSI Dashboard, a healthcare analytics platform that provides a clear and concise outline of your claims data in a user-friendly format that anonymizes Protected Health Information (PHI) for safe access anywhere.

The CSI Dashboard also highlights specific areas of impact where you can realize additional cost savings through smarter utilization of your health plan. Our participants are able to pinpoint where every claim dollar is spent and where inefficiencies are happening, allowing them to implement cost-control strategies that make sense for them.

4. Premium Reimbursement

With group captive insurance through Roundstone, only about 15% of premium costs are fixed. Plan participants have control of how the remaining 85% is spent. Compare that to fully insured options in which 100% of costs are fixed, leaving companies with no cost control options.

What’s more, whether you have a high-cost claim year or a low-cost year, you won’t see the data with a fully insured insurance plan, and the carrier keeps 100% of all profits.

With Roundstone, you have two opportunities for cash back: 1) You only pay for what you use, so you keep any money left in your claims account, and 2) Your monthly stop-loss premium payments also contribute to a shared risk pool with other captive participants. Any of those pooled premium funds that are not spent at the end of the plan year are returned to the employers in the form of distribution checks on a pro-rata basis.

Two-thirds of our customers save enough in their first four years with us to pay the premiums for their entire fifth year. And 100% save money, full stop.

5. Personal Service

Roundstone serves companies in all major market segments. Because no two businesses are the same, their insurance needs will also differ.

We recognize what makes your company unique and tailor your plan accordingly. We listen to your needs and preferences, and together, we craft a plan that meets your specific goals. We work with trusted health benefits advisors who share our customer-first philosophy and build a plan with the right partners.

You also have unparalleled access to Roundstone’s expert staff to help interpret your claim data and suggest ways your company can control costs.

Captive Insurance Solutions from Roundstone

Group captive insurance is a type of insurance product that is owned entirely by its shareholders, small and midsize companies that form their own self-insurance company. Captives are then able to self-fund their employees’ healthcare costs.

This type of arrangement has long been used by over 90% of large corporations to reduce risk and maximize profits. Until recently, smaller and midsize companies have not had the resources to do this on their own.

With the help of Roundstone, smaller-scale businesses can band together to share risk and eliminate the volatility of their healthcare costs.

Data analysis

Why Leave All the Profits to the Insurance Heavyweights?

Healthcare benefits are among the top three most costly business expenses, and those costs are doubling every four years. Further, employers don’t usually get adequate reporting from their insurers to help them understand where their healthcare dollars are being spent.

The top health insurance companies in the U.S. continue to see significant increases in revenue every year, and not because healthcare costs are going up, but because of increasing insurance premiums and sky-high healthcare executive salaries.

Did you know that healthcare executive pay increased more than 90% from 2008- 2018?

Employers are clearly losing while insurance providers are winning big.

But with group captive insurance through Roundstone, small and midsize businesses can save money by insuring their employees the way large corporations do — by self-funding with the power of self-funded group captives.

Roundstone’s commitment to our clients makes participation in our group captive insurance program a win-win — for you and the employees who depend on you.

For More Information

If you’d like more information about how group captives work, read Intro to Member-Owned Group Captive Insurance.

For more information about Roundstone’s commitment to data transparency, see Captives Do It Better: Data Transparency.

To learn more about the ways that a Roundstone group captive plan can help you contain costs, listen to our podcast Taking Control of Healthcare Benefits.

Want to find out if you’re a good fit for a self-funded plan? Our checklist helps you decide.

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Request a Proposal

To begin the conversation about providing your company with the benefits of captive group health insurance, request a proposal today. We’re happy to review your options so your company can start saving right away on the rising costs of healthcare.

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