Rick (Lombardi),

I believe the cap at Brown is $720 for buybacks versus $6,000 to $7,000 (50%
of current premium) for a family plan in Newport. If all municipal and
school employees participated in the municipal plan, which statistically is
not likely, the ones currently taking the buyback would have the effect of
increasing the city's healthcare reserves by a substantial amount, resulting
in reduced premiums for the city. A friend of mine was the compensation and
benefits head for one of the largest companies in the U.S. with one of the
best benefits packages anywhere and they do not offer buybacks to anyone.
What do they know that other organizations may not after constant benefit
analysis?

If we were Brown University, our buyback costs would be perhaps $150,000
rather than the current $700,000 or so we now pay. Newport has one of the
most generous plans you would find anywhere.

Fred Faerber