Bentonville Faces Increased Workers’ Compensation Costs, Approves $159K Adjustment

BENTONVILLE, Ark. – The Bentonville City Council has approved a budget adjustment of $159,345 to cover additional workers’ compensation insurance costs for 2024 and 2025. The adjustment was necessary due to an increase in premiums and claims, prompting city officials to reallocate funds.

Workers’ compensation insurance provides benefits to city employees who suffer job-related injuries or illnesses, covering medical expenses, lost wages, and rehabilitation costs. However, rising claim numbers and higher policy rates have contributed to the unexpected cost increase.

What’s Driving the Increase?

City officials have not specified whether the adjustment is due primarily to higher claims from injured workers or increased insurance rates set by the provider. However, trends in municipal insurance costs suggest that cities nationwide are facing higher premiums due to inflation, medical costs, and workforce risks.

"This adjustment ensures that the city meets its obligations to employees while maintaining financial stability," said a city representative. "We are reviewing how to better manage workers’ comp expenses in future budget cycles."

The City of Bentonville is expected to monitor its workers’ compensation costs closely and may consider new risk management strategies to prevent further budget increases.

For now, the budget adjustment allows Bentonville to remain compliant with its insurance carrier’s requirements and ensures that employees have full coverage in case of workplace injuries.

Residents and city employees with questions about the adjustment or Bentonville’s workers’ compensation policies can contact the city’s Human Resources or Finance Department.