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. Representatives from Financial Concepts, Inc. and City staff members have also been reviewing the renewal rates for the City's employee health insurance through the Lakes Country Service . Cooperative. According to the 2006 rate proposals, the City would experience a 20% increase in premiums for 2006 if we continued with our current health insurance plan. In order to offset the 20% rate increase, City staff is considering a change to a slightly more inexpensive plan. The recommended plan would result in a maximum out of pocket expense of $1,000 per person and $2,000 per family. The primary difference between the City's existing plan and the proposed plan is that employees would be responsible for 20% (not to exceed the out of pocket maximums) of the costs associated with inpatient or outpatient services. The recommended change in policy would result in a 10% increase in health care premiums for the City in 2006. In completing this employee benefit review process, Financial Concepts and City staff has also explored other options in which the City can improve its existing benefit packages, while maintaining or reducing the premium benefit costs to the City and our staff members. For your review, City staff has attached a breakdown of our existing insurance policies and the recommended changes that the City staff would like to have the City Council review for 2006. Recommendation City staff is requesting City Council review and approval of the proposed changes to the City's employee insurance benefit packages. . Attacl1ments: City of Arden Hills January 1, 2006lIealth Insurance Renewal Proposal Information .