Cost-Saving Strategies for All

Roundstone's self-funded health care model brings significant savings, relief, and empowerment to midsize companies year after year.

ROCKY RIVER, OH / ACCESS Newswire / December 3, 2025 / "Second to payroll, health insurance has long been one of the fastest-growing expenses for midsize businesses," says Mike Schroeder, founder and president of Roundstone, a self-funded medical group captive that serves more than 1,000 employers nationwide. "We see it every year; premiums rise while employers are left with little clarity on where the money goes or any control over cost-saving strategies."

These issues are why Schroeder has spent nearly two decades providing businesses with the tools to take charge of health care spending, enhance their benefits, and reinvest savings in areas that matter most, like keeping employee coverage affordable, protecting jobs, and freeing up capital for growth.

The challenges facing employers aren't abstract. "They show up in real balance sheets and tough operating decisions," Schroeder says.

One manufacturer, for instance, was hit especially hard when premiums spiked nearly 30% in a single year, a blow so steep the owner considered taking out a line of credit just to keep the business afloat. Despite prioritizing substantial benefits, relentlessly rising costs left leadership fearing they'd soon have to scale back coverage or shift more expenses to employees. However, after moving to Roundstone's self-funded group captive, the company was able to flatten rising costs for the first time in a decade, freeing up dollars to protect benefits and invest in growth instead of losing them to premium hikes.

How it Works

At Roundstone, the process is different. Rather than sending a fixed premium to an insurance carrier each month, employers split their health care dollars into three layers. The first covers everyday claims like prescriptions and routine doctor visits. The second is a shared pool that helps cover claims across all participating companies. And, at the top, a stop-loss layer kicks in for the really big, unexpected expenses, so no single business is left holding the burden. If there's money left over at the end of the year, it goes back to employers instead of disappearing into an insurer's pocket.

Schroeder says that some companies begin saving in the first year, while two-thirds save enough within four years to fully fund a fifth year of claims. Every client saves by year five, which is a guarantee that Roundstone backs in writing. Schroeder emphasizes that while the national average annual health care cost is approximately $16,700 per employee, Roundstone clients typically spend between $11,000 and $13,000, depending on optimization levels.

Those savings often translate into better benefits, as some companies cut employee deductibles in half or add free telehealth visits. Others introduce direct primary care or concierge tools to help workers compare costs and quality before treatment. Furthermore, unlike other self-funded providers, the company takes no revenue-sharing from pharmacies or claims vendors, keeps its fixed costs among the lowest in the industry, and invests heavily through its Partner Solutions Group, which is complemented by tools such as AI-powered provider matching, cash-pay models, and direct primary care networks.

Eight years on the Inc. 5000 list suggests the approach is paying off. "We're not just lowering costs," Schroeder concludes, "we're rebuilding the system so it works better for everyone."

SOURCE: Roundstone Management, LTD