Lake City will see increases to health insurance costs, but only minor ones, for coverage plans beginning at the start of next year. The city council received an extensive report from Mid-Iowa Insurance Associates on coverage pricing for Lake City’s 10 employees which detailed total premium costs, employee usage and a variety of other factors which influence rates. City Administrator, Eric Wood, says rates went up, but it could have been much worse.
Wood adds they are fortunate the costs were not even higher, considering employee use far exceeded what the city paid in premiums to their insurer, Wellmark BlueCross BlueShield.
Wood notes, however, the city did see a decrease in rates two years ago. Based on a low number of claims and reducing other risk factors for their employees, it is possible for the city to lower insurance costs. The new pricing will go into effect on Jan. 1, 2018.
