Two Rivers Insurance Company recently reached a restitution settlement with the State of Iowa, and the City of Perry will be one of the beneficiaries.

Perry is a member of the Iowa Governmental Health Care Plan (IGHCP), with Two Rivers acting as the administrator. After a recent investigation into Two Rivers’ billing practices by the Iowa Insurance Division (IID), it was concluded the way they had been billing was incorrect. As a result, a total of $1,314,029.10 will be paid to the state, with individual cities that are or have been part of the IGHCP receiving their portion of the restitution. The amount Perry will receive is $8,878, which will go back into the City’s benefits fund.

The issues arose with Two Rivers adding their company compensation to the insured’s established premium, and representing it as premium on rate summaries and monthly billings. Two Rivers maintains their past practices were appropriate, but they have agreed to change their billing to itemized instead of summarized. Their President and Chief Operating Officer Todd Ackerman agreed to the restitution amount, as opposed to having a prolonged and costly legal process.

The Perry City Council unanimously approved a resolution at their most recent meeting, which confirmed the City would participate in the distribution of the restitution.