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<br />4JHRH <br /> <br />Hilb Rogal & Hobbs <br />1155 Dairy Ashford, Suite 350 <br />P.O. Box 941709 (77094-8709) <br />Houston, Texas 77079-3012 <br />281 -531-4455 <br />800-964-6564 <br /> <br />hilb rogal & hobbs <br /> <br />TO: <br /> <br />Debra Feazelle <br /> <br />FROM: <br /> <br />Neal Welch <br />Kathy Clark <br /> <br />cc: <br /> <br />Robert Swanagan <br /> <br />DATE: <br /> <br />September 28,2006 <br /> <br />RE: <br /> <br />Health Plan Exhibits <br /> <br />As a result of the questions from Council and your request, we are forwarding pages <br />from the 1 72 Board packet. <br /> <br />1. Pages 9 and lOa - 10d address the over/under 65 rating for retirees if each group <br />stood on their own from a claims standpoint versus active employees. This <br />recommendation was not made by the 172 Board. <br />2. Pages 10e and 1 Of address the concept of new hires paying 20% more than <br />current active plan participants. This exercise anticipated some freezing of <br />current plan participant contributions. The 172 Board also did not recommend <br />this course of action. <br /> <br />Kathy and I hope to finish three premium illustrations for you today showing 1) Retiree <br />rates frozen at today's contribution levels, 2) Revised active rates with a special subsidy <br />to support the retirees, 3) The currently proposed 2007 rates blending both groups, and <br />a model of the retiree rate calculator, which we did not get to explain or illustrate at the <br />last Council Meeting. <br /> <br />Please call us if you have any questions or need additional illustrations. <br /> <br />Attachment: <br /> <br />172 Board Illustrations 7/14/06 <br /> <br />c:\documents and settings\lanclosm\local settings\temporary internet files\memo debra feazelle 09-28-06 172 iIlustrations,doc <br />