Brown & Brown of Kentucky Inc., a subsidiary of Brown & Brown Inc., continues to expand its role in the RV retail arena with a health insurance program tailored for recreational vehicle dealers. The “RV Dealers Health Collective Purchasing Arrangement” was introduced by the Florida-based firm in early 2017 as the only health insurance brokerage endorsed by the Recreation Vehicle Dealers Association (RVDA).
Brown & Brown’s program has grown to include 22 dealers employing a total of 1,533 individuals, according to Angie Weilage, an employee benefits consultant working out of Brown & Brown’s Louisville office.
Weilage said that the firm, which specializes in general health insurance as well as dental, vision, life, disability and other types of health-related benefits employers might offer their workers, is looking for more growth in 2018. “The program is growing rapidly,” she told RVBUSINESS.com during the Priority RV Network’s annual meeting last week in Las Vegas, “and we anticipate future growth based on all the interest we’re getting from various dealers throughout the country.
“It’s a collective health purchasing arrangement,” said Weilage. “So, it uses the leverage and buying power of all the dealers within the association to help lower the cost of insurance. So, the administrative fixed costs are lower and the reinsurance, which is your insurance protection from large claims, is lower because we’re buying it as a group instead of individually. In addition to that, you get the leverage from underwriters to help give you more favorable renewals because you’re part of a larger group instead of standing on your own.”
That especially comes into play in this industry, she said, where a lot of dealerships are mid-size firms that often struggle with health insurance.
“The other part of Brown & Brown’s acceptance within the industry really resulted from just listening to the dealers and understanding what they wanted,” she maintained. “Many of the dealers are in a spot where they don’t get any claims experience on their health plans because the carrier that they’re with currently doesn’t tell them who is using what, how many hospital visits, how many doctor visits, what it is that you’re spending versus the premium that you’re paying.”
Weilage said for this program Brown & Brown is utilizing one reinsurance carrier and one administrator in order to leverage its volume and get better pricing for dealers. Also as part of the program, which offers free online enrollment and has been expanded recently to include car dealers who join RVDA, those utilizing fewer services at the end of the year than Brown & Brown had anticipated receive surplus refunds.
Brown & Brown also provides prescription rebates for brand name medications.