Roundstone has developed an innovative solution to rising healthcare costs for midsized companies. This solution leverages the strengths of wellness initiatives, self-funding and captive insurance, while simultaneously addressing their shortcomings.
Online PR News – 18-June-2012 – Westlake/Ohio – Roundstone has developed an innovative solution to rising healthcare costs for midsized companies. This solution leverages the strengths of wellness initiatives, self-funding and captive insurance, while simultaneously addressing their shortcomings.
Self-funded insurance programs typically require very high deductibles and 1,000+ employees before they become an attractive option over standard fully insured products. They also introduce the employer to a significant amount of risk without giving them any loss control tools. Roundstone’s Mid-Market Med group captive program allows employers to pool risk and leverage their numbers to reap savings they would not be able to obtain on their own. The addition of a robust wellness program, with strong participation incentives, gives the employers the necessary tools that enable a positive impact on claims and healthcare cost.
Wellness programs provide an excellent opportunity for employers to improve the health and wellness of their employees. However, there are two main obstacles to any wellness program’s success: employee participation and employee participation. If employees do not participate in the program, it will not have any impact. Worse yet, when the employees fully embrace the wellness program and achieve results, the cost of the program is borne by the employer and the savings are realized by the insurance carrier in the form of reduced claims. Roundstone’s Mid-Market Med addresses both concerns. The wellness program is designed to encourage employee participation while the benefits are retained by the employer via savings in the self-funded and captive layers.
Where does the 75% come into play? The Mid-Market Med program is designed to place approximately 75% of an employer’s healthcare spend under the control of the employer. According to a 2006 study released by the CDC, diseases related to lifestyle account for 75% of national medical costs. Recently, a Rand study determined that 90% of all healthcare costs are related to preventable illnesses. The obvious conclusion based on these facts, is that a well-executed wellness program can have a dramatic impact on healthcare costs, but only if you self-fund at meaningful levels. Roundstone’s Mid-Market Med program takes the advantages of self-funding and combines wellness for a complete healthcare solution.