"I don't think anyone is upset about efforts to foster team spirit," said Külli Taro. "In general, I don't believe every state agency should be criticized for holding summer retreats or team events. People work in the public sector too, and they also need support. The real issue is how such events are organized and whether the costs are reasonable. As for the Health Insurance Fund, I don't think the summer retreat is the real source of the backlash — it seems more like the final straw that raises broader questions about the agency's leadership and values."

Taro noted that the Code of Ethics for Officials states civil servants must act in a trustworthy manner, which includes using public resources economically and efficiently.

"To be precise, the Health Insurance Fund isn't a state agency and its staff aren't civil servants, but the code of ethics as a set of values applies across the entire public sector. That means the Health Insurance Fund, which operates with public money, is indeed a public sector institution," she said.

Taro also pointed to Health Insurance Fund head Rain Laane's justification that the retreat was possible because the agency had significantly reduced labor costs.

However, after reviewing the agency's recent expenditures and accounting data, Taro found discrepancies — particularly in rental costs.

"Media reports previously suggested that the agency had saved around €150,000 by relocating to a new office space. But when I look at the accounting data, I just don't see where those savings are. I should note that I only have access to publicly available summary data. Still, I urge the Health Insurance Fund's supervisory board to start asking more questions. If you look at those public figures: in 2023, when the fund was still at its previous location, real estate costs were €410,854. Last year, they were €985,045. So, if your property expenses more than double in just a couple of years, I don't see any savings there. Again, these are just general figures, but they do raise questions," Taro said.

She also criticized the fund's decision to change its legal name as an unnecessary expense. "A few years ago, when the Health Insurance Fund changed its legal name from Eesti Haigekassa to Tervisekassa, I really wondered why. Any change in legal name, logo or branding comes with significant costs — direct financial costs and time costs. And in the public sector, time is a highly valuable resource. If the Health Insurance Fund is busy rebranding itself, then it can't focus on other tasks at the same time," she said.

"In my view, the summer retreat really was the symbolic final straw that makes you ask whether the values guiding the Health Insurance Fund today are acceptable in today's Estonia," Taro concluded.

Public sector executives must sense their responsibility

Taro said that when someone from the private sector is appointed to lead a public institution — as is the case with Rain Laane — it's crucial they understand the unique nature of the public sector.

"There's a risk that what's perfectly normal in the private sector — investing in employees, holding lavish events, offering all kinds of perks if you're a successful firm — that's entirely appropriate. That's a private business owner's choice; they can spend their profits however they like. But the public sector is different. That money doesn't belong to Rain Laane and it doesn't belong to the Health Insurance Fund. When I read in his interviews that they've saved money and are now using those savings for other things, that attitude doesn't sit right — because those savings don't belong to them," said Taro.

She again referred to the fund's accounting data, which, to her, gave the impression of a financially successful private company.

"It's not that there's some huge display of luxury, but it clearly falls outside the general expectations of public sector budgeting. And when Rain Laane said in an interview yesterday that we should look at what other government agencies and private companies are doing — first of all, comparisons with private companies are neither valid nor appropriate. As for other state agencies: last year, the Ministry of Foreign Affairs spent the most on a summer event — about €25,000. The ministry also expected around 200 employees to take part. We still don't know how much the Health Insurance Fund's retreat cost, but it's likely more than €25,000," she said.

In a Wednesday interview with ERR, Rain Laane said the actual cost of the retreat was some tens of thousands less than the €100,000 figure reported in the media.

"When I discussed this with my colleagues on the Ethics Council, our main concern wasn't so much the event itself but the Health Insurance Fund's communication. Not just poor messaging — but a fundamental sense that they don't grasp their role as a public sector institution, which has a duty to be transparent and to promptly account for how public funds are used," Taro said.

She added that claiming the final cost is still unknown is not a convincing explanation. "I sincerely hope this wasn't an open-tab kind of event where we just tally things up afterward. There must have been a budget and those figures should have been known long ago," she said.

The hosts asked Taro whether, and under what conditions, Rain Laane could remain in his position.

"That's ultimately a decision for the Health Insurance Fund's supervisory board. I'm looking to the board because it's their job to give direction to a leader coming from the private sector — to make clear what's acceptable and what isn't. If, on the one hand, we're saying there's no money for healthcare, yet on the other hand this institution costs significantly more to operate than comparable public agencies, then it's up to the board to set the boundaries," Taro replied.

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