EDITORIAL: St. Joseph County can’t afford business as usual on health insurance

South Bend Tribune (IN)

Nov. 26--In conceding his office made mistakes in budgeting St. Joseph County's health insurance fund, Auditor Mike Hamann has accepted responsibility for a costly error.

It's a mistake that saw the county's health insurance fund go from a nearly $10 million surplus in 2013 to a $5.8 million deficit in four years.

Hamann's acceptance of his office's failure to properly track the budget is only the first step in righting this listing fiscal ship.

Officials blamed the problem on the fact that the cost of insurance for retirees was not being factored into the annual budget; only the cost of current county employees was taken into account. It was a mistake repeated over several years.

That forced the county to siphon surpluses from earlier years to cover the deficits.

But beyond the shortfall in the budget books, there must be a better understanding of the role the county's insurance broker -- R&R Benefits -- is expected to play.

Andy Kostielney, president of the Board of Commissioners, said R&R provided the county with the annual cost of each participant in the plan -- about $12,800 -- but that it was up to county officials to adjust the budget to cover the costs.

R&R has been paid more than $1 million since it was hired in early 2013. During that time the company has negotiated contracts with health providers and provided oversight of employees' medical bills.

Given R&R's expertise, shouldn't part of the company's role include assisting county officials in the budget process?

The commissioners, the County Council, the auditor's office and the insurance broker all have a stake in making sure the county's insurance program is adequately funded and operates as intended. What this episode has revealed is a lack of communication, and the lack of clear lines of responsibility, among the various parties.

It has also put R&R in the spotlight again.

The three-member Board of Commissioners chose to retain R&R even after the county council tried to explore other contractors. Two council members, Mark Catanzarite and Robert Kruszynski Jr., wrote in a Viewpoint published in The Tribune that the commissioners declined an "opportunity to save a minimum of $1.25 million per year when it was presented to them this year."

This entire mess raises an important question: Is the county getting the best possible service at the best possible cost when it comes to insuring its employees, both current and past?

If another provider can give the county better service at less cost, county officials owe it to themselves, their employees and taxpayers to fully explore that opportunity.

But at the very least, for now, there must be better cooperation among all sides and clearer understanding of R&R's role in the budgeting process. St. Joseph County can't afford to accept business as usual, especially when there are millions of dollars at stake.

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