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Peosta says switch in workers' comp provider and benefit renewals lower costs; council approves renewals
Summary
Staff told the council that switching workers' compensation providers to Enkova lowered the city's projected premium to about $21,500 (roughly 33% below earlier estimates); the council approved employee benefit policy renewals including health, dental and life/disability coverage.
City staff told the Peosta City Council that a recent change in workers' compensation carriers and routine benefit renewals are expected to reduce near-term insurance costs for the city.
Adams, the presenter for the workers' comp review, said the city's move to Enkova produced a lower-than-expected experience modification and premiums that came in at about $21,500 for the year—"we're essentially saving 33%," Adams said—compared with earlier estimates of roughly $28,000–$29,000. Adams explained that a prior carrier (IMWCA) had not filed claims data with the state rate-setting body (NCCI), which meant the city effectively started with a neutral mod this year.
Separately, a staff presenter reviewed employee benefit renewals. Health insurance premiums increased about 5% this year but the plan design and employee contributions remain unchanged; dental coverage through Delta Dental increased roughly 2%; and the city's SunLife package (life, short- and long-term disability and EAP) remained the same other than a $3 monthly increase for EAP. The presenter recommended approving the renewals to avoid delaying coverage changes, and the council voted to approve them by voice vote.
Adams warned that estimates are subject to change when final payroll and claims data are reconciled with insurers for the July 1–June 30 plan year; staff said they expect minor adjustments and refunds if payrolls differ from the estimates used for budgeting.
Council approved a separate work quote referenced in the insurance packet (motion carried). Staff said the projected premium and the renewals as approved have been included in the FY2025 budget discussions.
