Council OKs insurance broker switch

In a tight vote Tuesday, Luzerne County Council decided to change the county’s insurance broker next year.

A county administration committee had independently screened, ranked and interviewed all four interested companies and unanimously recommended USI Insurance Services for $60,000 annually.

Pittston-based Joyce Insurance Group, the current broker, receives $50,000 annually and had submitted the lowest proposal of $47,500 per year to keep the work in 2022 and 2023.

Six council members voted to accept the committee’s recommendation of USI: Linda McClosky Houck, Chris Perry, Robert Schnee, Walter Griffith, Harry Haas and Stephen J. Urban.

The five voting no: LeeAnn McDermott, Kendra Radle, Sheila Saidman, Matthew Vough and Tim McGinley.

During discussion, Schnee asked why the committee did not recommend the lowest price option.

County Operational Services Division Head Edmund O’Neill, who was among the employees on the screening committee, told council he personally felt comfortable that USI adequately addressed all the committee’s concerns. A plus for USI was its size and volume of business with Travelers, which is a major provider of county insurance, O’Neill said. That working relationship may yield lower rates that more than offset its higher brokerage fee, he said.

USI is ranked as one of the largest brokers in the nation, the administration said.

Haas said he appreciates the committee’s work and believes selecting the lowest-price broker will “hurt us in the long-run.”

Perry said the county’s insurance premiums have increased $700,000, although he said he is not blaming the current broker because the county has had a high number of claims. He said he was supporting the company he believes is most likely to achieve the best rates and noted he is concerned about a potential rise in claims involving Children and Youth.

The county terminated former agency director Joanne Van Saun on July 1 because she was charged with endangering the welfare of children and two counts of obstruction in child abuse cases for allegedly directing employees in May 2017 to terminate at least 217 reports of child abuse and neglect without investigating them.

In response, the county retained Philadelphia law firm Troutman Pepper Hamilton Sanders LLP to complete a still-ongoing internal investigation of the agency to determine if there is any evidence of possible wrongdoing. The firm’s review has prompted county Acting Manager Romilda Crocamo to place three management-level employees on administrative leave pending further investigation. She did not identify the workers or specify what was discovered by Troutman Pepper.

McGinley, the council chairman, said he supported keeping the Joyce firm because it submitted the lowest price and is a county-based business with employees who reside locally.

Vough said he prefers the guaranteed savings on the brokerage fee.

The two other proposals submitted this year were $70,000 annually from Assured Partners of NEPA and $73,000 per year from One Group NY Inc., records show.

Vaccine mandate

A council majority also tabled Haas’ resolution banning a county employee/job applicant COVID-19 vaccine mandate.

Crocamo has repeatedly said she is not actively pursuing an employee vaccine mandate. She told council Tuesday the county as a whole would be in “serious trouble healthwise” if coronavirus cases and hospitalizations reached a level forcing her to consider such a mandate.

McClosky Houck said she does not believe council has authority to direct the manager and stressed county government is not subject to the federal vaccine mandate.

Haas said he is not trying to be divisive but believes council must “take a stand” due to the “federal overreach.”

But Radle said Haas’ proposal is “meant to be divisive” because Crocamo is not planning a mandate.

Perry concurred, saying council faces many pressing issues and should not unnecessarily have “federal politics coming down to Luzerne County.” On a personal note, Perry said he chose full vaccination after recovering from severe COVID-19 illness, although he does not believe in vaccination mandates.

Griffith said he has been vaccinated but believes a county mandate would make the county liable if an employee develops health problems attributed to the vaccine.

Saidman questioned who is liable if unvaccinated people spread the virus, causing someone else to die.

Urban said a county mandate would be a “huge liability.”

Seven council members voted to table: Schnee, Urban, Vough, McDermott, Perry, Radle and Saidman.

McClosky Houck and McGinley opposed the tabling because they wanted to vote against Haas’ proposal. McGinley said he agrees with McClosky Houck that such a decision “clearly” falls under the manager’s authority under the county’s home rule structure.

Haas and Griffith also opposed tabling.