Medical Captive Participants Receive $2 Million Savings
Employers using self-funded plans gain access to surplus funds through proactive health cost management strategies.
Updated on Oct. 26, 2026 in Healthcare
Live Poll
Do you trust self-funded employer health plans to provide better long-term value than traditional insurance?
Roundstone Insurance recently returned over $2 million in savings to participants of its July 2025 medical captive program. The firm facilitates self-funded employee health benefits for small and mid-sized employers across the United States.
Why it matters
By returning surplus funds to captive participants, the company incentivizes self-funded models that aim to lower health plan expenses compared to traditional market averages. This approach highlights an ongoing shift toward data-driven cost containment for employers managing rising benefit costs.
Roundstone serves over 1,000 employers, managing more than $1.5 billion in annual health claims. Participants in this captive program experienced an average renewal increase of 7 percent.
The players
Roundstone Insurance
A provider of self-funded health benefit solutions that serves over 1,000 small and mid-sized employers in the United States.
The details
Roundstone manages self-funded health plans by utilizing customized plan designs that provide employers with direct visibility into cost drivers. Through proactive cost containment strategies and increased data transparency, the firm aims to identify savings that are then returned to participating employers. This structure shifts some financial risk to the employers while potentially lowering the total cost of providing employee benefits.
Timeline
2005: Roundstone Insurance was founded.
July 2025: The medical captive program period began.
October 26, 2026: Roundstone announced the distribution of participant savings.
Market Landscape
This development aligns with the broader shift toward self-funded employee health benefit plans as employers seek to gain better control over rising premiums. It underscores a competitive trend where administrators differentiate themselves by returning underwriting surpluses to small and mid-sized business owners.
Employers evaluating self-funded insurance models should track their own per-employee cost metrics against industry benchmarks of $17,369 to identify potential savings. Consult with a benefits broker to determine if a captive structure fits your organization’s risk profile and annual claims volume.
The takeaway
The return of surplus funds demonstrates the practical value of data-transparency models in self-funded healthcare. Operators should monitor their renewal increases against the 7 percent average seen here to gauge whether their current benefits strategy is outperforming the broader market.
Further reading
For broader trends on cost control, see the Healthcare section.
Source note: This article includes information reported by Captiveinsurancetimes.
Live Poll
Do you trust self-funded employer health plans to provide better long-term value than traditional insurance?
