EDITORIAL: St. Joseph County health contract a step forward (sort of)

May 20--The new contract between St. Joseph County and its health insurance broker is a good start but doesn't go far enough.

Approved by the county Board of Commissioners last week by a 2-1 vote, the contract is supposed to provide more transparency when it comes to insurance costs for the county's 1,070 employees and its 200 retirees.

R&R Benefits was hired by the county in 2013 and worked under a "letter of engagement" up until now. R&R never had a contract outlining its responsibilities and how much it would be paid to carry out those responsibilities.

While the new contract lists the firm's duties, it doesn't say how much it will be paid. "I would have liked to see that clearly articulated," said Andy Kostielney, president of the three-member Board of Commissioners.

It's worth noting that Kostielney voted against the proposal, saying he would have preferred the firm be paid a flat annual fee rather than allowing it to be paid indirectly with health insurance premiums and commissions.

As recently as two years ago Kostielney said he supported R&R and the job it was doing for the county, adding he believed it would be difficult to find a consulting firm that would do a better job than the county's current one. He still believes R&R is doing excellent work.

But some have questioned sticking with the firm, especially when a study ranked three firms higher than R&R, with the potential to save substantial costs when it came to health insurance.

County Auditor Mike Hamann said he is puzzled about why the commissioners didn't approve a contract that spells out exactly how much R&R is paid. "It would be very good if we were aware of what they're being compensated -- just for the sake of transparency," Hamann told The Tribune after the vote.

We agree with the auditor. Having a contract that spells out exactly how much the county will pay its health insurance broker and what services will be provided for that cost is better than being paid indirectly with health insurance premiums and commissions, which is the case now.

Still, having a contract is one step that will better serve the county and its employees and retirees who depend on an efficiently run health insurance program. It's just not a large enough step.

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