Sen. Jeffrey M. Schoenberg

Filed: 5/28/2011

 

 


 

 


 
09700SB0175sam003LRB097 04017 JDS 56449 a

1
AMENDMENT TO SENATE BILL 175

2    AMENDMENT NO. ______. Amend Senate Bill 175 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The State Employees Group Insurance Act of 1971
5is amended by changing Section 10 as follows:
 
6    (5 ILCS 375/10)  (from Ch. 127, par. 530)
7    Sec. 10. Payments by State; premiums.
8    (a) The State shall pay the cost of basic non-contributory
9group life insurance and, subject to member paid contributions
10set by the Department or required by this Section, the basic
11program of group health benefits on each eligible member,
12except a member, not otherwise covered by this Act, who has
13retired as a participating member under Article 2 of the
14Illinois Pension Code but is ineligible for the retirement
15annuity under Section 2-119 of the Illinois Pension Code, and
16part of each eligible member's and retired member's premiums

 

 

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1for health insurance coverage for enrolled dependents as
2provided by Section 9. The State shall pay the cost of the
3basic program of group health benefits only after benefits are
4reduced by the amount of benefits covered by Medicare for all
5members and dependents who are eligible for benefits under
6Social Security or the Railroad Retirement system or who had
7sufficient Medicare-covered government employment, except that
8such reduction in benefits shall apply only to those members
9and dependents who (1) first become eligible for such Medicare
10coverage on or after July 1, 1992; or (2) are Medicare-eligible
11members or dependents of a local government unit which began
12participation in the program on or after July 1, 1992; or (3)
13remain eligible for, but no longer receive Medicare coverage
14which they had been receiving on or after July 1, 1992. The
15Department may determine the aggregate level of the State's
16contribution on the basis of actual cost of medical services
17adjusted for age, sex or geographic or other demographic
18characteristics which affect the costs of such programs.
19    The cost of participation in the basic program of group
20health benefits for the dependent or survivor of a living or
21deceased retired employee who was formerly employed by the
22University of Illinois in the Cooperative Extension Service and
23would be an annuitant but for the fact that he or she was made
24ineligible to participate in the State Universities Retirement
25System by clause (4) of subsection (a) of Section 15-107 of the
26Illinois Pension Code shall not be greater than the cost of

 

 

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1participation that would otherwise apply to that dependent or
2survivor if he or she were the dependent or survivor of an
3annuitant under the State Universities Retirement System.
4    (a-1) Beginning January 1, 1998, for each person who
5becomes a new SERS annuitant and participates in the basic
6program of group health benefits, the State shall contribute
7toward the cost of the annuitant's coverage under the basic
8program of group health benefits an amount equal to 5% of that
9cost for each full year of creditable service upon which the
10annuitant's retirement annuity is based, up to a maximum of
11100% for an annuitant with 20 or more years of creditable
12service. The remainder of the cost of a new SERS annuitant's
13coverage under the basic program of group health benefits shall
14be the responsibility of the annuitant. In the case of a new
15SERS annuitant who has elected to receive an alternative
16retirement cancellation payment under Section 14-108.5 of the
17Illinois Pension Code in lieu of an annuity, for the purposes
18of this subsection the annuitant shall be deemed to be
19receiving a retirement annuity based on the number of years of
20creditable service that the annuitant had established at the
21time of his or her termination of service under SERS.
22    (a-2) Beginning January 1, 1998, for each person who
23becomes a new SERS survivor and participates in the basic
24program of group health benefits, the State shall contribute
25toward the cost of the survivor's coverage under the basic
26program of group health benefits an amount equal to 5% of that

 

 

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1cost for each full year of the deceased employee's or deceased
2annuitant's creditable service in the State Employees'
3Retirement System of Illinois on the date of death, up to a
4maximum of 100% for a survivor of an employee or annuitant with
520 or more years of creditable service. The remainder of the
6cost of the new SERS survivor's coverage under the basic
7program of group health benefits shall be the responsibility of
8the survivor. In the case of a new SERS survivor who was the
9dependent of an annuitant who elected to receive an alternative
10retirement cancellation payment under Section 14-108.5 of the
11Illinois Pension Code in lieu of an annuity, for the purposes
12of this subsection the deceased annuitant's creditable service
13shall be determined as of the date of termination of service
14rather than the date of death.
15    (a-3) Beginning January 1, 1998, for each person who
16becomes a new SURS annuitant and participates in the basic
17program of group health benefits, the State shall contribute
18toward the cost of the annuitant's coverage under the basic
19program of group health benefits an amount equal to 5% of that
20cost for each full year of creditable service upon which the
21annuitant's retirement annuity is based, up to a maximum of
22100% for an annuitant with 20 or more years of creditable
23service. The remainder of the cost of a new SURS annuitant's
24coverage under the basic program of group health benefits shall
25be the responsibility of the annuitant.
26    (a-4) (Blank).

 

 

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1    (a-5) Beginning January 1, 1998, for each person who
2becomes a new SURS survivor and participates in the basic
3program of group health benefits, the State shall contribute
4toward the cost of the survivor's coverage under the basic
5program of group health benefits an amount equal to 5% of that
6cost for each full year of the deceased employee's or deceased
7annuitant's creditable service in the State Universities
8Retirement System on the date of death, up to a maximum of 100%
9for a survivor of an employee or annuitant with 20 or more
10years of creditable service. The remainder of the cost of the
11new SURS survivor's coverage under the basic program of group
12health benefits shall be the responsibility of the survivor.
13    (a-6) Beginning July 1, 1998, for each person who becomes a
14new TRS State annuitant and participates in the basic program
15of group health benefits, the State shall contribute toward the
16cost of the annuitant's coverage under the basic program of
17group health benefits an amount equal to 5% of that cost for
18each full year of creditable service as a teacher as defined in
19paragraph (2), (3), or (5) of Section 16-106 of the Illinois
20Pension Code upon which the annuitant's retirement annuity is
21based, up to a maximum of 100%; except that the State
22contribution shall be 12.5% per year (rather than 5%) for each
23full year of creditable service as a regional superintendent or
24assistant regional superintendent of schools. The remainder of
25the cost of a new TRS State annuitant's coverage under the
26basic program of group health benefits shall be the

 

 

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1responsibility of the annuitant.
2    (a-7) Beginning July 1, 1998, for each person who becomes a
3new TRS State survivor and participates in the basic program of
4group health benefits, the State shall contribute toward the
5cost of the survivor's coverage under the basic program of
6group health benefits an amount equal to 5% of that cost for
7each full year of the deceased employee's or deceased
8annuitant's creditable service as a teacher as defined in
9paragraph (2), (3), or (5) of Section 16-106 of the Illinois
10Pension Code on the date of death, up to a maximum of 100%;
11except that the State contribution shall be 12.5% per year
12(rather than 5%) for each full year of the deceased employee's
13or deceased annuitant's creditable service as a regional
14superintendent or assistant regional superintendent of
15schools. The remainder of the cost of the new TRS State
16survivor's coverage under the basic program of group health
17benefits shall be the responsibility of the survivor.
18    (a-8) A new SERS annuitant, new SERS survivor, new SURS
19annuitant, new SURS survivor, new TRS State annuitant, or new
20TRS State survivor may waive or terminate coverage in the
21program of group health benefits. Any such annuitant or
22survivor who has waived or terminated coverage may enroll or
23re-enroll in the program of group health benefits only during
24the annual benefit choice period, as determined by the
25Director; except that in the event of termination of coverage
26due to nonpayment of premiums, the annuitant or survivor may

 

 

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1not re-enroll in the program.
2    (a-9) No later than May 1 of each calendar year, the
3Director of Central Management Services shall certify in
4writing to the Executive Secretary of the State Employees'
5Retirement System of Illinois the amounts of the Medicare
6supplement health care premiums and the amounts of the health
7care premiums for all other retirees who are not Medicare
8eligible.
9    A separate calculation of the premiums based upon the
10actual cost of each health care plan shall be so certified.
11    The Director of Central Management Services shall provide
12to the Executive Secretary of the State Employees' Retirement
13System of Illinois such information, statistics, and other data
14as he or she may require to review the premium amounts
15certified by the Director of Central Management Services.
16    The Department of Healthcare and Family Services, or any
17successor agency designated to procure healthcare contracts
18pursuant to this Act, is authorized to establish funds,
19separate accounts provided by any bank or banks as defined by
20the Illinois Banking Act, or separate accounts provided by any
21savings and loan association or associations as defined by the
22Illinois Savings and Loan Act of 1985 to be held by the
23Director, outside the State treasury, for the purpose of
24receiving the transfer of moneys from the Local Government
25Health Insurance Reserve Fund. The Department may promulgate
26rules further defining the methodology for the transfers. Any

 

 

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1interest earned by moneys in the funds or accounts shall inure
2to the Local Government Health Insurance Reserve Fund. The
3transferred moneys, and interest accrued thereon, shall be used
4exclusively for transfers to administrative service
5organizations or their financial institutions for payments of
6claims to claimants and providers under the self-insurance
7health plan. The transferred moneys, and interest accrued
8thereon, shall not be used for any other purpose including, but
9not limited to, reimbursement of administration fees due the
10administrative service organization pursuant to its contract
11or contracts with the Department.
12    (a-10) Notwithstanding any provision of this Act to the
13contrary, beginning January 1, 2012, annuitants, retired
14employees, and survivors must pay premiums in order to obtain
15coverage for themselves and any dependents under the program of
16group health benefits provided under this Act. The Director
17shall determine the amount of the premium to be paid by each
18annuitant, retired employee, and survivor, based upon a system
19that takes into account (i) points, which are calculated by
20summing the retiree's age when benefits commenced and his or
21her total years of service, and (ii) annual State pension
22income, according to the following schedule:
23        (1) For a retired employee, annuitant, or survivor with
24    78 or fewer points and:
25            (A) An annual State pension income of less than
26        $15,000, 50% of the applicable premium.

 

 

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1            (B) An annual State pension income of at least
2        $15,000 but less than $30,000, 60% of the applicable
3        premium.
4            (C) An annual State pension income of at least
5        $30,000 but less than $50,000, 70% of the applicable
6        premium.
7            (D) An annual State pension income of at least
8        $50,000 but less than $100,000, 80% of the applicable
9        premium.
10            (E) An annual State pension income of at least
11        $100,000 but less than $125,000, 90% of the applicable
12        premium.
13            (F) An annual State pension income of $125,000 or
14        more, 100% of the applicable premium.
15        (2) For a retired employee, annuitant, or survivor with
16    79 to 85 points and:
17            (A) An annual State pension income of less than
18        $15,000, 35% of the applicable premium.
19            (B) An annual State pension income of at least
20        $15,000 but less than $30,000, 45% of the applicable
21        premium.
22            (C) An annual State pension income of at least
23        $30,000 but less than $50,000, 55% of the applicable
24        premium.
25            (D) An annual State pension income of at least
26        $50,000 but less than $100,000, 65% of the applicable

 

 

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1        premium.
2            (E) An annual State pension income of at least
3        $100,000 but less than $125,000, 75% of the applicable
4        premium.
5            (F) An annual State pension income of $125,000 or
6        more, 100% of the applicable premium.
7        (3) For a retired employee, annuitant, or survivor with
8    86 to 92 points and:
9            (A) An annual State pension income of less than
10        $15,000, 20% of the applicable premium.
11            (B) An annual State pension income of at least
12        $15,000 but less than $30,000, 30% of the applicable
13        premium.
14            (C) An annual State pension income of at least
15        $30,000 but less than $50,000, 40% of the applicable
16        premium.
17            (D) An annual State pension income of at least
18        $50,000 but less than $100,000, 50% of the applicable
19        premium.
20            (E) An annual State pension income of at least
21        $100,000 but less than $125,000, 60% of the applicable
22        premium.
23            (F) An annual State pension income of $125,000 or
24        more, 100% of the applicable premium.
25        (4) For a retired employee, annuitant, or survivor with
26    93 or more points and:

 

 

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1            (A) An annual State pension income of less than
2        $15,000, 5% of the applicable premium.
3            (B) An annual State pension income of at least
4        $15,000 but less than $30,000, 15% of the applicable
5        premium.
6            (C) An annual State pension income of at least
7        $30,000 but less than $50,000, 25% of the applicable
8        premium.
9            (D) An annual State pension income of at least
10        $50,000 but less than $100,000, 35% of the applicable
11        premium.
12            (E) An annual State pension income of at least
13        $100,000 but less than $125,000, 45% of the applicable
14        premium.
15            (F) An annual State pension income of $125,000 or
16        more, 85% of the applicable premium.
17    The schedule of premium contributions for annuitants,
18retired employees, and survivors that is set forth in this
19subsection (a-10) shall also be used for the purpose of
20calculating the portion of premiums that is to be paid by those
21persons for dependent coverage.
22    The Director shall establish by rule a process for retired
23employees, annuitants, and survivors to appeal determinations
24of annual State pension income.
25    With respect to any annuitant, retired employee, or
26survivor covered by a collective bargaining agreement in effect

 

 

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1on the effective date of this amendatory Act of the 97th
2General Assembly and until that collective bargaining
3agreement terminates, the obligation of each retired employee,
4annuitant, or survivor to pay the required premium applies only
5to the extent that the obligation is consistent with any
6contractual obligations existing in any collective bargaining
7agreement.
8    Upon the expiration of any collective bargaining agreement
9in effect on the effective date of this amendatory Act of the
1097th General Assembly, the Director may alter the schedule
11above to ensure that 49% of the costs associated with the basic
12program of group health benefits are covered by retired
13employees, annuitants, and survivors.
14    For the purposes of this subsection (a-10), "State pension
15income" means income paid or payable to an individual from a
16retirement system created under Article 2, 14, 15, 16, or 18 of
17the Illinois Pension Code.
18    (b) State employees who become eligible for this program on
19or after January 1, 1980 in positions normally requiring actual
20performance of duty not less than 1/2 of a normal work period
21but not equal to that of a normal work period, shall be given
22the option of participating in the available program. If the
23employee elects coverage, the State shall contribute on behalf
24of such employee to the cost of the employee's benefit and any
25applicable dependent supplement, that sum which bears the same
26percentage as that percentage of time the employee regularly

 

 

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1works when compared to normal work period.
2    (c) The basic non-contributory coverage from the basic
3program of group health benefits shall be continued for each
4employee not in pay status or on active service by reason of
5(1) leave of absence due to illness or injury, (2) authorized
6educational leave of absence or sabbatical leave, or (3)
7military leave. This coverage shall continue until expiration
8of authorized leave and return to active service, but not to
9exceed 24 months for leaves under item (1) or (2). This
1024-month limitation and the requirement of returning to active
11service shall not apply to persons receiving ordinary or
12accidental disability benefits or retirement benefits through
13the appropriate State retirement system or benefits under the
14Workers' Compensation or Occupational Disease Act.
15    (d) The basic group life insurance coverage shall continue,
16with full State contribution, where such person is (1) absent
17from active service by reason of disability arising from any
18cause other than self-inflicted, (2) on authorized educational
19leave of absence or sabbatical leave, or (3) on military leave.
20    (e) Where the person is in non-pay status for a period in
21excess of 30 days or on leave of absence, other than by reason
22of disability, educational or sabbatical leave, or military
23leave, such person may continue coverage only by making
24personal payment equal to the amount normally contributed by
25the State on such person's behalf. Such payments and coverage
26may be continued: (1) until such time as the person returns to

 

 

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1a status eligible for coverage at State expense, but not to
2exceed 24 months or (2) until such person's employment or
3annuitant status with the State is terminated (exclusive of any
4additional service imposed pursuant to law).
5    (f) The Department shall establish by rule the extent to
6which other employee benefits will continue for persons in
7non-pay status or who are not in active service.
8    (g) The State shall not pay the cost of the basic
9non-contributory group life insurance, program of health
10benefits and other employee benefits for members who are
11survivors as defined by paragraphs (1) and (2) of subsection
12(q) of Section 3 of this Act. The costs of benefits for these
13survivors shall be paid by the survivors or by the University
14of Illinois Cooperative Extension Service, or any combination
15thereof. However, the State shall pay the amount of the
16reduction in the cost of participation, if any, resulting from
17the amendment to subsection (a) made by this amendatory Act of
18the 91st General Assembly.
19    (h) Those persons occupying positions with any department
20as a result of emergency appointments pursuant to Section 8b.8
21of the Personnel Code who are not considered employees under
22this Act shall be given the option of participating in the
23programs of group life insurance, health benefits and other
24employee benefits. Such persons electing coverage may
25participate only by making payment equal to the amount normally
26contributed by the State for similarly situated employees. Such

 

 

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1amounts shall be determined by the Director. Such payments and
2coverage may be continued until such time as the person becomes
3an employee pursuant to this Act or such person's appointment
4is terminated.
5    (i) Any unit of local government within the State of
6Illinois may apply to the Director to have its employees,
7annuitants, and their dependents provided group health
8coverage under this Act on a non-insured basis. To participate,
9a unit of local government must agree to enroll all of its
10employees, who may select coverage under either the State group
11health benefits plan or a health maintenance organization that
12has contracted with the State to be available as a health care
13provider for employees as defined in this Act. A unit of local
14government must remit the entire cost of providing coverage
15under the State group health benefits plan or, for coverage
16under a health maintenance organization, an amount determined
17by the Director based on an analysis of the sex, age,
18geographic location, or other relevant demographic variables
19for its employees, except that the unit of local government
20shall not be required to enroll those of its employees who are
21covered spouses or dependents under this plan or another group
22policy or plan providing health benefits as long as (1) an
23appropriate official from the unit of local government attests
24that each employee not enrolled is a covered spouse or
25dependent under this plan or another group policy or plan, and
26(2) at least 50% of the employees are enrolled and the unit of

 

 

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1local government remits the entire cost of providing coverage
2to those employees, except that a participating school district
3must have enrolled at least 50% of its full-time employees who
4have not waived coverage under the district's group health plan
5by participating in a component of the district's cafeteria
6plan. A participating school district is not required to enroll
7a full-time employee who has waived coverage under the
8district's health plan, provided that an appropriate official
9from the participating school district attests that the
10full-time employee has waived coverage by participating in a
11component of the district's cafeteria plan. For the purposes of
12this subsection, "participating school district" includes a
13unit of local government whose primary purpose is education as
14defined by the Department's rules.
15    Employees of a participating unit of local government who
16are not enrolled due to coverage under another group health
17policy or plan may enroll in the event of a qualifying change
18in status, special enrollment, special circumstance as defined
19by the Director, or during the annual Benefit Choice Period. A
20participating unit of local government may also elect to cover
21its annuitants. Dependent coverage shall be offered on an
22optional basis, with the costs paid by the unit of local
23government, its employees, or some combination of the two as
24determined by the unit of local government. The unit of local
25government shall be responsible for timely collection and
26transmission of dependent premiums.

 

 

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1    The Director shall annually determine monthly rates of
2payment, subject to the following constraints:
3        (1) In the first year of coverage, the rates shall be
4    equal to the amount normally charged to State employees for
5    elected optional coverages or for enrolled dependents
6    coverages or other contributory coverages, or contributed
7    by the State for basic insurance coverages on behalf of its
8    employees, adjusted for differences between State
9    employees and employees of the local government in age,
10    sex, geographic location or other relevant demographic
11    variables, plus an amount sufficient to pay for the
12    additional administrative costs of providing coverage to
13    employees of the unit of local government and their
14    dependents.
15        (2) In subsequent years, a further adjustment shall be
16    made to reflect the actual prior years' claims experience
17    of the employees of the unit of local government.
18    In the case of coverage of local government employees under
19a health maintenance organization, the Director shall annually
20determine for each participating unit of local government the
21maximum monthly amount the unit may contribute toward that
22coverage, based on an analysis of (i) the age, sex, geographic
23location, and other relevant demographic variables of the
24unit's employees and (ii) the cost to cover those employees
25under the State group health benefits plan. The Director may
26similarly determine the maximum monthly amount each unit of

 

 

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1local government may contribute toward coverage of its
2employees' dependents under a health maintenance organization.
3    Monthly payments by the unit of local government or its
4employees for group health benefits plan or health maintenance
5organization coverage shall be deposited in the Local
6Government Health Insurance Reserve Fund.
7    The Local Government Health Insurance Reserve Fund is
8hereby created as a nonappropriated trust fund to be held
9outside the State Treasury, with the State Treasurer as
10custodian. The Local Government Health Insurance Reserve Fund
11shall be a continuing fund not subject to fiscal year
12limitations. The Local Government Health Insurance Reserve
13Fund is not subject to administrative charges or charge-backs,
14including but not limited to those authorized under Section 8h
15of the State Finance Act. All revenues arising from the
16administration of the health benefits program established
17under this Section shall be deposited into the Local Government
18Health Insurance Reserve Fund. Any interest earned on moneys in
19the Local Government Health Insurance Reserve Fund shall be
20deposited into the Fund. All expenditures from this Fund shall
21be used for payments for health care benefits for local
22government and rehabilitation facility employees, annuitants,
23and dependents, and to reimburse the Department or its
24administrative service organization for all expenses incurred
25in the administration of benefits. No other State funds may be
26used for these purposes.

 

 

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1    A local government employer's participation or desire to
2participate in a program created under this subsection shall
3not limit that employer's duty to bargain with the
4representative of any collective bargaining unit of its
5employees.
6    (j) Any rehabilitation facility within the State of
7Illinois may apply to the Director to have its employees,
8annuitants, and their eligible dependents provided group
9health coverage under this Act on a non-insured basis. To
10participate, a rehabilitation facility must agree to enroll all
11of its employees and remit the entire cost of providing such
12coverage for its employees, except that the rehabilitation
13facility shall not be required to enroll those of its employees
14who are covered spouses or dependents under this plan or
15another group policy or plan providing health benefits as long
16as (1) an appropriate official from the rehabilitation facility
17attests that each employee not enrolled is a covered spouse or
18dependent under this plan or another group policy or plan, and
19(2) at least 50% of the employees are enrolled and the
20rehabilitation facility remits the entire cost of providing
21coverage to those employees. Employees of a participating
22rehabilitation facility who are not enrolled due to coverage
23under another group health policy or plan may enroll in the
24event of a qualifying change in status, special enrollment,
25special circumstance as defined by the Director, or during the
26annual Benefit Choice Period. A participating rehabilitation

 

 

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1facility may also elect to cover its annuitants. Dependent
2coverage shall be offered on an optional basis, with the costs
3paid by the rehabilitation facility, its employees, or some
4combination of the 2 as determined by the rehabilitation
5facility. The rehabilitation facility shall be responsible for
6timely collection and transmission of dependent premiums.
7    The Director shall annually determine quarterly rates of
8payment, subject to the following constraints:
9        (1) In the first year of coverage, the rates shall be
10    equal to the amount normally charged to State employees for
11    elected optional coverages or for enrolled dependents
12    coverages or other contributory coverages on behalf of its
13    employees, adjusted for differences between State
14    employees and employees of the rehabilitation facility in
15    age, sex, geographic location or other relevant
16    demographic variables, plus an amount sufficient to pay for
17    the additional administrative costs of providing coverage
18    to employees of the rehabilitation facility and their
19    dependents.
20        (2) In subsequent years, a further adjustment shall be
21    made to reflect the actual prior years' claims experience
22    of the employees of the rehabilitation facility.
23    Monthly payments by the rehabilitation facility or its
24employees for group health benefits shall be deposited in the
25Local Government Health Insurance Reserve Fund.
26    (k) Any domestic violence shelter or service within the

 

 

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1State of Illinois may apply to the Director to have its
2employees, annuitants, and their dependents provided group
3health coverage under this Act on a non-insured basis. To
4participate, a domestic violence shelter or service must agree
5to enroll all of its employees and pay the entire cost of
6providing such coverage for its employees. The domestic
7violence shelter shall not be required to enroll those of its
8employees who are covered spouses or dependents under this plan
9or another group policy or plan providing health benefits as
10long as (1) an appropriate official from the domestic violence
11shelter attests that each employee not enrolled is a covered
12spouse or dependent under this plan or another group policy or
13plan and (2) at least 50% of the employees are enrolled and the
14domestic violence shelter remits the entire cost of providing
15coverage to those employees. Employees of a participating
16domestic violence shelter who are not enrolled due to coverage
17under another group health policy or plan may enroll in the
18event of a qualifying change in status, special enrollment, or
19special circumstance as defined by the Director or during the
20annual Benefit Choice Period. A participating domestic
21violence shelter may also elect to cover its annuitants.
22Dependent coverage shall be offered on an optional basis, with
23employees, or some combination of the 2 as determined by the
24domestic violence shelter or service. The domestic violence
25shelter or service shall be responsible for timely collection
26and transmission of dependent premiums.

 

 

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1    The Director shall annually determine rates of payment,
2subject to the following constraints:
3        (1) In the first year of coverage, the rates shall be
4    equal to the amount normally charged to State employees for
5    elected optional coverages or for enrolled dependents
6    coverages or other contributory coverages on behalf of its
7    employees, adjusted for differences between State
8    employees and employees of the domestic violence shelter or
9    service in age, sex, geographic location or other relevant
10    demographic variables, plus an amount sufficient to pay for
11    the additional administrative costs of providing coverage
12    to employees of the domestic violence shelter or service
13    and their dependents.
14        (2) In subsequent years, a further adjustment shall be
15    made to reflect the actual prior years' claims experience
16    of the employees of the domestic violence shelter or
17    service.
18    Monthly payments by the domestic violence shelter or
19service or its employees for group health insurance shall be
20deposited in the Local Government Health Insurance Reserve
21Fund.
22    (l) A public community college or entity organized pursuant
23to the Public Community College Act may apply to the Director
24initially to have only annuitants not covered prior to July 1,
251992 by the district's health plan provided health coverage
26under this Act on a non-insured basis. The community college

 

 

09700SB0175sam003- 23 -LRB097 04017 JDS 56449 a

1must execute a 2-year contract to participate in the Local
2Government Health Plan. Any annuitant may enroll in the event
3of a qualifying change in status, special enrollment, special
4circumstance as defined by the Director, or during the annual
5Benefit Choice Period.
6    The Director shall annually determine monthly rates of
7payment subject to the following constraints: for those
8community colleges with annuitants only enrolled, first year
9rates shall be equal to the average cost to cover claims for a
10State member adjusted for demographics, Medicare
11participation, and other factors; and in the second year, a
12further adjustment of rates shall be made to reflect the actual
13first year's claims experience of the covered annuitants.
14    (l-5) The provisions of subsection (l) become inoperative
15on July 1, 1999.
16    (m) The Director shall adopt any rules deemed necessary for
17implementation of this amendatory Act of 1989 (Public Act
1886-978).
19    (n) Any child advocacy center within the State of Illinois
20may apply to the Director to have its employees, annuitants,
21and their dependents provided group health coverage under this
22Act on a non-insured basis. To participate, a child advocacy
23center must agree to enroll all of its employees and pay the
24entire cost of providing coverage for its employees. The child
25advocacy center shall not be required to enroll those of its
26employees who are covered spouses or dependents under this plan

 

 

09700SB0175sam003- 24 -LRB097 04017 JDS 56449 a

1or another group policy or plan providing health benefits as
2long as (1) an appropriate official from the child advocacy
3center attests that each employee not enrolled is a covered
4spouse or dependent under this plan or another group policy or
5plan and (2) at least 50% of the employees are enrolled and the
6child advocacy center remits the entire cost of providing
7coverage to those employees. Employees of a participating child
8advocacy center who are not enrolled due to coverage under
9another group health policy or plan may enroll in the event of
10a qualifying change in status, special enrollment, or special
11circumstance as defined by the Director or during the annual
12Benefit Choice Period. A participating child advocacy center
13may also elect to cover its annuitants. Dependent coverage
14shall be offered on an optional basis, with the costs paid by
15the child advocacy center, its employees, or some combination
16of the 2 as determined by the child advocacy center. The child
17advocacy center shall be responsible for timely collection and
18transmission of dependent premiums.
19    The Director shall annually determine rates of payment,
20subject to the following constraints:
21        (1) In the first year of coverage, the rates shall be
22    equal to the amount normally charged to State employees for
23    elected optional coverages or for enrolled dependents
24    coverages or other contributory coverages on behalf of its
25    employees, adjusted for differences between State
26    employees and employees of the child advocacy center in

 

 

09700SB0175sam003- 25 -LRB097 04017 JDS 56449 a

1    age, sex, geographic location, or other relevant
2    demographic variables, plus an amount sufficient to pay for
3    the additional administrative costs of providing coverage
4    to employees of the child advocacy center and their
5    dependents.
6        (2) In subsequent years, a further adjustment shall be
7    made to reflect the actual prior years' claims experience
8    of the employees of the child advocacy center.
9    Monthly payments by the child advocacy center or its
10employees for group health insurance shall be deposited into
11the Local Government Health Insurance Reserve Fund.
12(Source: P.A. 95-331, eff. 8-21-07; 95-632, eff. 9-25-07;
1395-707, eff. 1-11-08; 96-756, eff. 1-1-10; 96-1232, eff.
147-23-10; 96-1519, eff. 2-4-11.)
 
15    Section 99. Effective date. This Act takes effect January
161, 2012.".