City eyes health coverage increase to retain workers

The City of Flandreau is weighing whether to increase its share of health insurance costs as a way to stay competitive in attracting and keeping employees, particularly younger staff with families.
City Administrator Cohl Turnquist raised the issue at this past weeks council meeting, noting that employee feedback consistently points to health insurance as an area where improvements could boost satisfaction and retention.
Right now, the city covers 50% of family plan premiums while fully covering single plans. Turnquist suggested raising the citys share of family and spouse plans to 75%. That would bring the citys contribution on a typical family plan from about $12,367 to $18,551, with employees paying the remaining $6,184.
At the most recent meeting, Alderman Tim Yeaton moved to increase the citys contribution instead to 65%. The motion failed, but officials agreed to revisit the issue during the 2026 budget workshop.
Any change would affect an estimated six to 10 employees, Turnquist said, with costs to the city ranging from $10,000 to $40,000 depending on what level of increase is approved. The final impact would also hinge on annual insurance rate hikes. New 2026 rates have not yet been released. Funding, if approved, would come from both enterprise and general funds.
Mayor Dan Sutton said higher coverage could make a difference in keeping staff. Every employer is different. If health insurance helps attract and maintain our employees, its worth exploring, he said.