Illinois General Assembly - Full Text of SB1432
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Full Text of SB1432  93rd General Assembly

SB1432 93rd General Assembly


093_SB1432

 
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 1        AN ACT concerning health coverage  under  State  employee
 2    programs.

 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:

 5        Section 5.  The State Employees Group  Insurance  Act  of
 6    1971  is  amended by changing Sections 2, 3, 10, 13.2, and 15
 7    as follows:

 8        (5 ILCS 375/2) (from Ch. 127, par. 522)
 9        Sec. 2.  Purpose.  The purpose of this Act is to  provide
10    a  program  of  group  life  insurance,  a  program of health
11    benefits and other  employee  benefits  for  persons  in  the
12    service   of  the  State  of  Illinois,  employees  of  local
13    governments,  employees  of  rehabilitation  facilities   and
14    employees  of  domestic  violence  shelters and services, and
15    certain of their dependents.  It is also the purpose of  this
16    Act  to  provide a program of health benefits (i) for certain
17    benefit recipients of the Teachers' Retirement System of  the
18    State  of Illinois and their dependent beneficiaries and (ii)
19    for certain eligible retired community college employees  and
20    their  dependent  beneficiaries.   It  is also the purpose of
21    this Act to provide a program  of  health  benefits  for  (i)
22    owners  and employees of qualified small businesses and their
23    dependents  and  (ii)   self-employed   persons   and   their
24    dependents.
25    (Source: P.A. 89-25, eff. 6-21-95; 90-497, eff. 8-18-97.)

26        (5 ILCS 375/3) (from Ch. 127, par. 523)
27        Sec.   3.  Definitions.   Unless  the  context  otherwise
28    requires, the following words and phrases as used in this Act
29    shall have the following meanings.  The Department may define
30    these and other words and phrases separately for the  purpose
 
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 1    of  implementing  specific  programs providing benefits under
 2    this Act.
 3        (a)  "Administrative  service  organization"  means   any
 4    person,  firm  or  corporation experienced in the handling of
 5    claims  which  is  fully  qualified,  financially  sound  and
 6    capable of meeting the service requirements of a contract  of
 7    administration executed with the Department.
 8        (b)  "Annuitant"  means  (1)  an employee who retires, or
 9    has retired, on or after January  1,  1966  on  an  immediate
10    annuity under the provisions of Articles 2, 14, 15 (including
11    an  employee  who  has  retired under the optional retirement
12    program established under Section 15-158.2), paragraphs  (2),
13    (3),  or (5) of Section 16-106, or Article 18 of the Illinois
14    Pension  Code;  (2)  any  person  who  was  receiving   group
15    insurance  coverage  under  this  Act as of March 31, 1978 by
16    reason of his status as an annuitant, even though the annuity
17    in  relation  to  which  such  coverage  was  provided  is  a
18    proportional annuity based on less than the minimum period of
19    service required for  a  retirement  annuity  in  the  system
20    involved;  (3)  any  person not otherwise covered by this Act
21    who has retired as a participating member under Article 2  of
22    the   Illinois   Pension  Code  but  is  ineligible  for  the
23    retirement  annuity  under  Section  2-119  of  the  Illinois
24    Pension Code; (4) the spouse of any person who is receiving a
25    retirement annuity under Article 18 of the  Illinois  Pension
26    Code  and  who  is  covered  under  a  group health insurance
27    program sponsored by a governmental employer other  than  the
28    State  of  Illinois  and who has irrevocably elected to waive
29    his or her coverage under this Act and to  have  his  or  her
30    spouse  considered  as the "annuitant" under this Act and not
31    as a "dependent"; or (5) an  employee  who  retires,  or  has
32    retired,  from  a qualified position, as determined according
33    to rules promulgated by the Director, under a qualified local
34    government  or  a  qualified  rehabilitation  facility  or  a
 
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 1    qualified domestic violence shelter or  service;  or  (6)  an
 2    owner  or  employee  who  retires,  or  has  retired,  from a
 3    qualified  position,  as  determined   according   to   rules
 4    promulgated  by the Director, with a qualified small business
 5    or as  self-employed  person.  (For  definition  of  "retired
 6    employee", see (p) post).
 7        (b-5)  "New  SERS  annuitant"  means  a person who, on or
 8    after January 1, 1998, becomes an annuitant,  as  defined  in
 9    subsection   (b),   by  virtue  of  beginning  to  receive  a
10    retirement annuity under Article 14 of the  Illinois  Pension
11    Code,  and is eligible to participate in the basic program of
12    group health benefits provided for annuitants under this Act.
13        (b-6)  "New SURS annuitant" means a person who (1) on  or
14    after  January  1,  1998, becomes an annuitant, as defined in
15    subsection  (b),  by  virtue  of  beginning  to   receive   a
16    retirement  annuity  under Article 15 of the Illinois Pension
17    Code, (2) has not made the election authorized under  Section
18    15-135.1 of the Illinois Pension Code, and (3) is eligible to
19    participate  in  the  basic  program of group health benefits
20    provided for annuitants under this Act.
21        (b-7)  "New TRS State annuitant" means a person  who,  on
22    or  after  July  1, 1998, becomes an annuitant, as defined in
23    subsection  (b),  by  virtue  of  beginning  to   receive   a
24    retirement  annuity  under Article 16 of the Illinois Pension
25    Code based on service as a teacher as  defined  in  paragraph
26    (2),  (3),  or  (5)  of  Section  16-106 of that Code, and is
27    eligible to participate in the basic program of group  health
28    benefits provided for annuitants under this Act.
29        (c)  "Carrier"   means   (1)   an  insurance  company,  a
30    corporation  organized  under  the  Limited  Health   Service
31    Organization Act or the Voluntary Health Services Plan Act, a
32    partnership,  or other nongovernmental organization, which is
33    authorized  to  do  group  life  or  group  health  insurance
34    business in Illinois, or (2)  the  State  of  Illinois  as  a
 
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 1    self-insurer.
 2        (d)  "Compensation"  means  salary  or wages payable on a
 3    regular payroll by the State Treasurer on a  warrant  of  the
 4    State Comptroller out of any State, trust or federal fund, or
 5    by  the Governor of the State through a disbursing officer of
 6    the State out of a trust or out of federal funds, or  by  any
 7    Department  out  of State, trust, federal or other funds held
 8    by the State Treasurer or the Department, to any  person  for
 9    personal   services  currently  performed,  and  ordinary  or
10    accidental disability  benefits  under  Articles  2,  14,  15
11    (including  ordinary  or accidental disability benefits under
12    the optional retirement  program  established  under  Section
13    15-158.2),  paragraphs (2), (3), or (5) of Section 16-106, or
14    Article 18 of  the  Illinois  Pension  Code,  for  disability
15    incurred after January 1, 1966, or benefits payable under the
16    Workers'   Compensation   or  Occupational  Diseases  Act  or
17    benefits  payable  under  a  sick  pay  plan  established  in
18    accordance  with  Section  36  of  the  State  Finance   Act.
19    "Compensation" also means salary or wages paid to an employee
20    of any qualified local government or qualified rehabilitation
21    facility or a qualified domestic violence shelter or service.
22    "Compensation" also means salary or wages paid to an employee
23    or  owner  of  a  qualified  small business and earned income
24    earned by a self-employed person.
25        (e)  "Commission"  means  the   State   Employees   Group
26    Insurance   Advisory   Commission  authorized  by  this  Act.
27    Commencing July 1, 1984, "Commission" as  used  in  this  Act
28    means   the   Illinois  Economic  and  Fiscal  Commission  as
29    established by the Legislative Commission Reorganization  Act
30    of 1984.
31        (f)  "Contributory",  when  referred  to  as contributory
32    coverage, shall mean optional coverages or  benefits  elected
33    by  the  member  toward  the  cost of which such member makes
34    contribution, or which are funded in whole or in part through
 
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 1    the acceptance of a reduction in earnings or the foregoing of
 2    an increase in earnings by an employee, as distinguished from
 3    noncontributory coverage or benefits which are paid  entirely
 4    by  the  State  of Illinois without reduction of the member's
 5    salary.
 6        (g)  "Department"  means  any  department,   institution,
 7    board,  commission, officer, court or any agency of the State
 8    government  receiving  appropriations  and  having  power  to
 9    certify payrolls to the Comptroller authorizing  payments  of
10    salary  and  wages against such appropriations as are made by
11    the General Assembly from any State fund,  or  against  trust
12    funds  held  by  the  State  Treasurer and includes boards of
13    trustees of the retirement systems created by Articles 2, 14,
14    15, 16 and 18 of the  Illinois  Pension  Code.   "Department"
15    also  includes  the  Illinois  Comprehensive Health Insurance
16    Board, the Board of Examiners established under the  Illinois
17    Public Accounting Act, and the Illinois Rural Bond Bank.
18        (h)  "Dependent", when the term is used in the context of
19    the  health  and  life  plan, means a member's spouse and any
20    unmarried child (1) from birth to age 19 including an adopted
21    child, a child who lives with the member from the time of the
22    filing of a petition for adoption until entry of an order  of
23    adoption,  a stepchild or recognized child who lives with the
24    member in a parent-child relationship, or a child  who  lives
25    with  the member if such member is a court appointed guardian
26    of the child, or (2) age 19 to 23  enrolled  as  a  full-time
27    student  in any accredited school, financially dependent upon
28    the member, and eligible to be claimed  as  a  dependent  for
29    income tax purposes, or (3) age 19 or over who is mentally or
30    physically  handicapped.  For  the health plan only, the term
31    "dependent" also includes any person enrolled  prior  to  the
32    effective  date  of  this  Section  who is dependent upon the
33    member to the extent that the member may claim such person as
34    a dependent for income tax deduction purposes; no other  such
 
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 1    person  may  be  enrolled. For the health plan only, the term
 2    "dependent" also includes any person who has  received  after
 3    June  30,  2000  an  organ  transplant and who is financially
 4    dependent upon the member and eligible to  be  claimed  as  a
 5    dependent for income tax purposes.
 6        (i)  "Director"   means  the  Director  of  the  Illinois
 7    Department of Central Management Services.
 8        (j)  "Eligibility period" means  the  period  of  time  a
 9    member  has  to  elect  enrollment  in  programs or to select
10    benefits without regard to age, sex or health.
11        (k)  "Employee"  means  and  includes  each  officer   or
12    employee  in the service of a department who (1) receives his
13    compensation for service rendered  to  the  department  on  a
14    warrant   issued   pursuant  to  a  payroll  certified  by  a
15    department or on a warrant or check issued  and  drawn  by  a
16    department  upon  a  trust,  federal  or  other  fund or on a
17    warrant issued pursuant to a payroll certified by an  elected
18    or  duly  appointed  officer  of  the  State  or who receives
19    payment of the performance of personal services on a  warrant
20    issued  pursuant  to  a payroll certified by a Department and
21    drawn by the Comptroller upon  the  State  Treasurer  against
22    appropriations  made by the General Assembly from any fund or
23    against trust funds held by the State Treasurer, and  (2)  is
24    employed  full-time  or  part-time  in  a  position  normally
25    requiring actual performance of duty during not less than 1/2
26    of  a  normal  work period, as established by the Director in
27    cooperation with each department, except that persons elected
28    by popular vote  will  be  considered  employees  during  the
29    entire  term  for  which they are elected regardless of hours
30    devoted to the service of the  State,  and  (3)  except  that
31    "employee" does not include any person who is not eligible by
32    reason  of  such person's employment to participate in one of
33    the State retirement systems under Articles 2, 14, 15 (either
34    the regular Article 15  system  or  the  optional  retirement
 
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 1    program  established  under Section 15-158.2) or 18, or under
 2    paragraph (2), (3), or (5) of Section 16-106, of the Illinois
 3    Pension Code, but such term  does  include  persons  who  are
 4    employed  during  the 6 month qualifying period under Article
 5    14 of the Illinois Pension Code.  Such term also includes any
 6    person who (1) after January 1, 1966, is  receiving  ordinary
 7    or  accidental  disability  benefits under Articles 2, 14, 15
 8    (including ordinary or accidental disability  benefits  under
 9    the  optional  retirement  program  established under Section
10    15-158.2), paragraphs (2), (3), or (5) of Section 16-106,  or
11    Article  18  of  the  Illinois  Pension  Code, for disability
12    incurred after January 1, 1966, (2) receives total  permanent
13    or total temporary disability under the Workers' Compensation
14    Act  or  Occupational  Disease  Act  as  a result of injuries
15    sustained or illness contracted in the course  of  employment
16    with  the  State of Illinois, or (3) is not otherwise covered
17    under this Act and has  retired  as  a  participating  member
18    under   Article  2  of  the  Illinois  Pension  Code  but  is
19    ineligible for the retirement annuity under Section 2-119  of
20    the  Illinois  Pension Code.  However, a person who satisfies
21    the criteria of the foregoing definition of "employee" except
22    that such person is made ineligible  to  participate  in  the
23    State   Universities  Retirement  System  by  clause  (4)  of
24    subsection (a) of Section 15-107 of the Illinois Pension Code
25    is  also  an  "employee"  for  the  purposes  of  this   Act.
26    "Employee" also includes any person receiving or eligible for
27    benefits under a sick pay plan established in accordance with
28    Section 36 of the State Finance Act. "Employee" also includes
29    each  officer or employee in the service of a qualified local
30    government,  including  persons  appointed  as  trustees   of
31    sanitary districts regardless of hours devoted to the service
32    of the sanitary district, and each employee in the service of
33    a   qualified  rehabilitation  facility  and  each  full-time
34    employee in the service  of  a  qualified  domestic  violence
 
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 1    shelter   or   service,  as  determined  according  to  rules
 2    promulgated by the  Director.  "Employee"  also  includes  an
 3    owner  and a full-time employee in the service of a qualified
 4    small business and  a  self-employed  person,  as  determined
 5    according to rules promulgated by the Director.
 6        (l)  "Member"   means  an  employee,  annuitant,  retired
 7    employee or survivor.
 8        (m)  "Optional  coverages  or   benefits"   means   those
 9    coverages  or  benefits available to the member on his or her
10    voluntary election, and at his or her own expense.
11        (n)  "Program" means the  group  life  insurance,  health
12    benefits  and other employee benefits designed and contracted
13    for by the Director under this Act.
14        (o)  "Health  plan"  means  a  health  benefits   program
15    offered by the State of Illinois for persons eligible for the
16    plan.
17        (p)  "Retired  employee" means any person who would be an
18    annuitant as that term is defined herein  but  for  the  fact
19    that such person retired prior to January 1, 1966.  Such term
20    also  includes any person formerly employed by the University
21    of Illinois in the Cooperative Extension Service who would be
22    an annuitant but for the  fact  that  such  person  was  made
23    ineligible   to   participate   in   the  State  Universities
24    Retirement System by clause (4) of subsection (a) of  Section
25    15-107 of the Illinois Pension Code.
26        (q)  "Survivor"  means a person receiving an annuity as a
27    survivor of an employee or of an annuitant.  "Survivor"  also
28    includes:  (1)  the  surviving  dependent  of  a  person  who
29    satisfies  the  definition  of  "employee"  except  that such
30    person  is  made  ineligible  to  participate  in  the  State
31    Universities Retirement System by clause  (4)  of  subsection
32    (a)  of  Section 15-107 of the Illinois Pension Code; and (2)
33    the surviving dependent of any person  formerly  employed  by
34    the  University  of  Illinois  in  the  Cooperative Extension
 
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 1    Service who would be an annuitant except for  the  fact  that
 2    such  person  was made ineligible to participate in the State
 3    Universities Retirement System by clause  (4)  of  subsection
 4    (a) of Section 15-107 of the Illinois Pension Code.
 5        (q-5)  "New  SERS  survivor" means a survivor, as defined
 6    in subsection (q), whose annuity is paid under Article 14  of
 7    the Illinois Pension Code and is based on the death of (i) an
 8    employee  whose  death occurs on or after January 1, 1998, or
 9    (ii) a new SERS annuitant as defined in subsection (b-5).
10        (q-6)  "New SURS survivor" means a survivor,  as  defined
11    in  subsection (q), whose annuity is paid under Article 15 of
12    the Illinois Pension Code and is based on the death of (i) an
13    employee whose death occurs on or after January 1,  1998,  or
14    (ii) a new SURS annuitant as defined in subsection (b-6).
15        (q-7)  "New  TRS  State  survivor"  means  a survivor, as
16    defined in  subsection  (q),  whose  annuity  is  paid  under
17    Article  16  of the Illinois Pension Code and is based on the
18    death of (i) an employee who  is  a  teacher  as  defined  in
19    paragraph (2), (3), or (5) of Section 16-106 of that Code and
20    whose  death  occurs  on or after July 1, 1998, or (ii) a new
21    TRS State annuitant as defined in subsection (b-7).
22        (r)  "Medical  services"  means  the  services   provided
23    within  the  scope  of their licenses by practitioners in all
24    categories licensed under the Medical Practice Act of 1987.
25        (s)  "Unit  of  local  government"  means   any   county,
26    municipality,   township,   school   district   (including  a
27    combination of school districts under  the  Intergovernmental
28    Cooperation  Act), special district or other unit, designated
29    as a unit of local government by law, which exercises limited
30    governmental  powers  or  powers  in   respect   to   limited
31    governmental  subjects, any not-for-profit association with a
32    membership that primarily  includes  townships  and  township
33    officials, that has duties that include provision of research
34    service, dissemination of information, and other acts for the
 
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 1    purpose  of improving township government, and that is funded
 2    wholly or partly in accordance  with  Section  85-15  of  the
 3    Township Code; any not-for-profit corporation or association,
 4    with  a  membership  consisting  primarily of municipalities,
 5    that operates its own utility system, and provides  research,
 6    training,  dissemination  of  information,  or  other acts to
 7    promote cooperation between  and  among  municipalities  that
 8    provide utility services and for the advancement of the goals
 9    and   purposes  of  its  membership;  the  Southern  Illinois
10    Collegiate Common Market, which is  a  consortium  of  higher
11    education institutions in Southern Illinois; and the Illinois
12    Association  of Park Districts.  "Qualified local government"
13    means a unit of local government approved by the Director and
14    participating in a program created under  subsection  (i)  of
15    Section 10 of this Act.
16        (t)  "Qualified   rehabilitation   facility"   means  any
17    not-for-profit  organization  that  is  accredited   by   the
18    Commission  on  Accreditation of Rehabilitation Facilities or
19    certified by the Department of Human Services  (as  successor
20    to   the   Department  of  Mental  Health  and  Developmental
21    Disabilities)   to   provide   services   to   persons   with
22    disabilities and which  receives  funds  from  the  State  of
23    Illinois  for  providing  those  services,  approved  by  the
24    Director   and  participating  in  a  program  created  under
25    subsection (j) of Section 10 of this Act.
26        (u)  "Qualified domestic  violence  shelter  or  service"
27    means  any  Illinois domestic violence shelter or service and
28    its administrative offices funded by the Department of  Human
29    Services  (as  successor to the Illinois Department of Public
30    Aid), approved by the Director and participating in a program
31    created under subsection (k) of Section 10.
32        (v)  "TRS benefit recipient" means a person who:
33             (1)  is not a "member" as defined in  this  Section;
34        and
 
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 1             (2)  is  receiving  a  monthly benefit or retirement
 2        annuity under Article 16 of the  Illinois  Pension  Code;
 3        and
 4             (3)  either  (i)  has at least 8 years of creditable
 5        service under Article 16 of the Illinois Pension Code, or
 6        (ii) was enrolled in the health insurance program offered
 7        under that Article on January 1, 1996, or  (iii)  is  the
 8        survivor  of a benefit recipient who had at least 8 years
 9        of creditable service under Article 16  of  the  Illinois
10        Pension  Code  or  was  enrolled  in the health insurance
11        program offered under that Article on the effective  date
12        of this amendatory Act of 1995, or (iv) is a recipient or
13        survivor  of  a  recipient  of a disability benefit under
14        Article 16 of the Illinois Pension Code.
15        (w)  "TRS dependent beneficiary" means a person who:
16             (1)  is not a "member" or "dependent" as defined  in
17        this Section; and
18             (2)  is  a  TRS benefit recipient's: (A) spouse, (B)
19        dependent parent who is receiving at least half of his or
20        her support  from  the  TRS  benefit  recipient,  or  (C)
21        unmarried  natural  or adopted child who is (i) under age
22        19, or  (ii)  enrolled  as  a  full-time  student  in  an
23        accredited  school,  financially  dependent  upon the TRS
24        benefit recipient, eligible to be claimed as a  dependent
25        for  income  tax  purposes, and either is under age 24 or
26        was, on January 1, 1996,  participating  as  a  dependent
27        beneficiary in the health insurance program offered under
28        Article  16 of the Illinois Pension Code, or (iii) age 19
29        or over who is mentally or physically handicapped.
30        (x)  "Military leave with pay  and  benefits"  refers  to
31    individuals  in basic training for reserves, special/advanced
32    training, annual training, emergency call up,  or  activation
33    by  the  President of the United States with approved pay and
34    benefits.
 
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 1        (y)  "Military leave without pay and benefits" refers  to
 2    individuals who enlist for active duty in a regular component
 3    of  the  U.S.  Armed  Forces  or  other duty not specified or
 4    authorized under military leave with pay and benefits.
 5        (z)  "Community college benefit recipient" means a person
 6    who:
 7             (1)  is not a "member" as defined in  this  Section;
 8        and
 9             (2)  is  receiving  a  monthly survivor's annuity or
10        retirement annuity  under  Article  15  of  the  Illinois
11        Pension Code; and
12             (3)  either  (i)  was  a  full-time  employee  of  a
13        community college district or an association of community
14        college boards created under the Public Community College
15        Act  (other  than  an  employee whose last employer under
16        Article 15 of the Illinois Pension Code was  a  community
17        college  district  subject  to  Article VII of the Public
18        Community College Act) and was eligible to participate in
19        a group health benefit plan as  an  employee  during  the
20        time  of  employment  with  a  community college district
21        (other than  a  community  college  district  subject  to
22        Article  VII  of  the Public Community College Act) or an
23        association of community college boards, or (ii)  is  the
24        survivor of a person described in item (i).
25        (aa)  "Community  college  dependent beneficiary" means a
26    person who:
27             (1)  is not a "member" or "dependent" as defined  in
28        this Section; and
29             (2)  is a community college benefit recipient's: (A)
30        spouse,  (B)  dependent  parent who is receiving at least
31        half of his or her support  from  the  community  college
32        benefit  recipient,  or  (C) unmarried natural or adopted
33        child who is (i) under age 19,  or  (ii)  enrolled  as  a
34        full-time  student  in  an accredited school, financially
 
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 1        dependent upon the community college  benefit  recipient,
 2        eligible  to  be  claimed  as  a dependent for income tax
 3        purposes and under age 23, or (iii) age 19  or  over  and
 4        mentally or physically handicapped.
 5        (bb)  "Qualified   small   business"   means  a  business
 6    situated in Illinois having 25 or fewer  employees,  approved
 7    by  the Director and participating in a program created under
 8    subsection (k-5) of Section 10.
 9        (cc)  "Self-employed person" means a person engaged in  a
10    business  enterprise  as  a  self-employed  person  or who is
11    conducting another self-employed occupation or profession and
12    is participating in a program created under subsection  (k-5)
13    of Section 10.
14    (Source:  P.A.  91-390,  eff.  7-30-99; 91-395, eff. 7-30-99;
15    91-617, eff.  8-19-99;  92-16,  eff.  6-28-01;  92-186,  eff.
16    1-1-02; 92-204, eff. 8-1-01; 92-651, eff. 7-11-02.)

17        (5 ILCS 375/10) (from Ch. 127, par. 530)
18        Sec. 10.  Payments by State; premiums.
19        (a)  The    State   shall   pay   the   cost   of   basic
20    non-contributory group life insurance and, subject to  member
21    paid  contributions set by the Department or required by this
22    Section, the basic program of group health benefits  on  each
23    eligible  member,  except  a member, not otherwise covered by
24    this Act, who has retired as  a  participating  member  under
25    Article  2 of the Illinois Pension Code but is ineligible for
26    the retirement annuity under Section 2-119  of  the  Illinois
27    Pension  Code, and part of each eligible member's and retired
28    member's premiums for health insurance coverage for  enrolled
29    dependents as provided by Section 9.  The State shall pay the
30    cost of the basic program of group health benefits only after
31    benefits  are  reduced  by  the amount of benefits covered by
32    Medicare for all members and dependents who are eligible  for
33    benefits  under  Social  Security  or the Railroad Retirement
 
                            -14-     LRB093 08085 JLS 08286 b
 1    system or  who  had  sufficient  Medicare-covered  government
 2    employment,  except  that  such  reduction  in benefits shall
 3    apply only to those members  and  dependents  who  (1)  first
 4    become  eligible  for such Medicare coverage on or after July
 5    1, 1992; or (2) are Medicare-eligible members  or  dependents
 6    of  a  local government unit which began participation in the
 7    program on or after July 1, 1992; or (3) remain eligible for,
 8    but no longer receive Medicare coverage which they  had  been
 9    receiving  on  or  after  July  1,  1992.  The Department may
10    determine the aggregate level of the State's contribution  on
11    the  basis  of  actual  cost of medical services adjusted for
12    age, sex or geographic or other  demographic  characteristics
13    which affect the costs of such programs.
14        The  cost  of participation in the basic program of group
15    health benefits for the dependent or survivor of a living  or
16    deceased  retired  employee  who was formerly employed by the
17    University of Illinois in the Cooperative  Extension  Service
18    and would be an annuitant but for the fact that he or she was
19    made  ineligible  to  participate  in  the State Universities
20    Retirement System by clause (4) of subsection (a) of  Section
21    15-107 of the Illinois Pension Code shall not be greater than
22    the  cost of participation that would otherwise apply to that
23    dependent or survivor if he or  she  were  the  dependent  or
24    survivor   of  an  annuitant  under  the  State  Universities
25    Retirement System.
26        (a-1)  Beginning January 1, 1998,  for  each  person  who
27    becomes  a  new  SERS annuitant and participates in the basic
28    program of group health benefits, the State shall  contribute
29    toward  the  cost of the annuitant's coverage under the basic
30    program of group health benefits an amount  equal  to  5%  of
31    that cost for each full year of creditable service upon which
32    the  annuitant's retirement annuity is based, up to a maximum
33    of 100% for an annuitant with 20 or more years of  creditable
34    service.  The remainder of the cost of a new SERS annuitant's
 
                            -15-     LRB093 08085 JLS 08286 b
 1    coverage under the basic program  of  group  health  benefits
 2    shall be the responsibility of the annuitant.
 3        (a-2)  Beginning  January  1,  1998,  for each person who
 4    becomes a new SERS survivor and  participates  in  the  basic
 5    program  of group health benefits, the State shall contribute
 6    toward the cost of the survivor's coverage  under  the  basic
 7    program  of  group  health  benefits an amount equal to 5% of
 8    that cost for each full year of the  deceased  employee's  or
 9    deceased   annuitant's   creditable   service  in  the  State
10    Employees' Retirement System  of  Illinois  on  the  date  of
11    death,  up to a maximum of 100% for a survivor of an employee
12    or annuitant with 20 or more  years  of  creditable  service.
13    The remainder of the cost of the new SERS survivor's coverage
14    under the basic program of group health benefits shall be the
15    responsibility of the survivor.
16        (a-3)  Beginning  January  1,  1998,  for each person who
17    becomes a new SURS annuitant and participates  in  the  basic
18    program  of group health benefits, the State shall contribute
19    toward the cost of the annuitant's coverage under  the  basic
20    program  of  group  health  benefits an amount equal to 5% of
21    that cost for each full year of creditable service upon which
22    the annuitant's retirement annuity is based, up to a  maximum
23    of  100% for an annuitant with 20 or more years of creditable
24    service. The remainder of the cost of a new SURS  annuitant's
25    coverage  under  the  basic  program of group health benefits
26    shall be the responsibility of the annuitant.
27        (a-4)  (Blank).
28        (a-5)  Beginning January 1, 1998,  for  each  person  who
29    becomes  a  new  SURS  survivor and participates in the basic
30    program of group health benefits, the State shall  contribute
31    toward  the  cost  of the survivor's coverage under the basic
32    program of group health benefits an amount  equal  to  5%  of
33    that  cost  for  each full year of the deceased employee's or
34    deceased  annuitant's  creditable  service   in   the   State
 
                            -16-     LRB093 08085 JLS 08286 b
 1    Universities  Retirement System on the date of death, up to a
 2    maximum of 100% for a survivor of an  employee  or  annuitant
 3    with  20  or more years of creditable service.  The remainder
 4    of the cost of the new SURS  survivor's  coverage  under  the
 5    basic   program   of  group  health  benefits  shall  be  the
 6    responsibility of the survivor.
 7        (a-6)  Beginning  July  1,  1998,  for  each  person  who
 8    becomes a new TRS State annuitant  and  participates  in  the
 9    basic  program  of  group  health  benefits,  the State shall
10    contribute toward the cost of the annuitant's coverage  under
11    the basic program of group health benefits an amount equal to
12    5% of that cost for each full year of creditable service as a
13    teacher  as  defined in paragraph (2), (3), or (5) of Section
14    16-106  of  the  Illinois  Pension  Code   upon   which   the
15    annuitant's  retirement  annuity is based, up to a maximum of
16    100%; except that the State contribution shall be  12.5%  per
17    year  (rather  than  5%)  for  each  full  year of creditable
18    service as a regional superintendent  or  assistant  regional
19    superintendent  of  schools.   The remainder of the cost of a
20    new TRS State annuitant's coverage under the basic program of
21    group health benefits shall  be  the  responsibility  of  the
22    annuitant.
23        (a-7)  Beginning  July  1,  1998,  for  each  person  who
24    becomes  a  new  TRS  State  survivor and participates in the
25    basic program of  group  health  benefits,  the  State  shall
26    contribute  toward  the cost of the survivor's coverage under
27    the basic program of group health benefits an amount equal to
28    5% of that cost for each full year of the deceased employee's
29    or deceased annuitant's creditable service as  a  teacher  as
30    defined  in  paragraph  (2), (3), or (5) of Section 16-106 of
31    the Illinois Pension Code on the  date  of  death,  up  to  a
32    maximum  of 100%; except that the State contribution shall be
33    12.5% per year (rather than 5%) for each  full  year  of  the
34    deceased   employee's   or  deceased  annuitant's  creditable
 
                            -17-     LRB093 08085 JLS 08286 b
 1    service as a regional superintendent  or  assistant  regional
 2    superintendent  of  schools. The remainder of the cost of the
 3    new TRS State survivor's coverage under the basic program  of
 4    group  health  benefits  shall  be  the responsibility of the
 5    survivor.
 6        (a-8)  A new SERS annuitant, new SERS survivor, new  SURS
 7    annuitant, new SURS survivor, new TRS State annuitant, or new
 8    TRS  State  survivor  may  waive or terminate coverage in the
 9    program of group health  benefits.   Any  such  annuitant  or
10    survivor  who has waived or terminated coverage may enroll or
11    re-enroll in the program of group health benefits only during
12    the annual  benefit  choice  period,  as  determined  by  the
13    Director; except that in the event of termination of coverage
14    due  to nonpayment of premiums, the annuitant or survivor may
15    not re-enroll in the program.
16        (a-9)  No later than May 1 of  each  calendar  year,  the
17    Director  of  Central  Management  Services  shall certify in
18    writing to the Executive Secretary of  the  State  Employees'
19    Retirement  System  of  Illinois  the amounts of the Medicare
20    supplement health care premiums and the amounts of the health
21    care premiums for all other retirees  who  are  not  Medicare
22    eligible.
23        A  separate  calculation  of  the premiums based upon the
24    actual cost of each health care plan shall be so certified.
25        The Director of Central Management Services shall provide
26    to the Executive Secretary of the State Employees' Retirement
27    System of Illinois such information,  statistics,  and  other
28    data  as  he or she may require to review the premium amounts
29    certified by the Director of Central Management Services.
30        (b)  State employees who become eligible for this program
31    on or after January 1, 1980 in positions  normally  requiring
32    actual performance of duty not less than 1/2 of a normal work
33    period  but  not equal to that of a normal work period, shall
34    be  given  the  option  of  participating  in  the  available
 
                            -18-     LRB093 08085 JLS 08286 b
 1    program. If the employee elects  coverage,  the  State  shall
 2    contribute  on  behalf  of  such  employee to the cost of the
 3    employee's benefit and any applicable  dependent  supplement,
 4    that  sum  which bears the same percentage as that percentage
 5    of time the employee regularly works when compared to  normal
 6    work period.
 7        (c)  The  basic  non-contributory coverage from the basic
 8    program of group health benefits shall be continued for  each
 9    employee  not in pay status or on active service by reason of
10    (1) leave of absence due to illness or injury, (2) authorized
11    educational leave of absence  or  sabbatical  leave,  or  (3)
12    military  leave  with  pay  and benefits. This coverage shall
13    continue until expiration of authorized leave and  return  to
14    active  service, but not to exceed 24 months for leaves under
15    item (1) or (2). This 24-month limitation and the requirement
16    of returning to active service shall  not  apply  to  persons
17    receiving  ordinary  or  accidental  disability  benefits  or
18    retirement  benefits through the appropriate State retirement
19    system  or  benefits  under  the  Workers'  Compensation   or
20    Occupational Disease Act.
21        (d)  The   basic  group  life  insurance  coverage  shall
22    continue, with full State contribution, where such person  is
23    (1)  absent  from  active  service  by  reason  of disability
24    arising from any cause  other  than  self-inflicted,  (2)  on
25    authorized  educational leave of absence or sabbatical leave,
26    or (3) on military leave with pay and benefits.
27        (e)  Where the person is in non-pay status for  a  period
28    in  excess  of  30 days or on leave of absence, other than by
29    reason of disability, educational  or  sabbatical  leave,  or
30    military  leave  with  pay  and  benefits,  such  person  may
31    continue  coverage  only  by making personal payment equal to
32    the amount normally contributed by the State on such person's
33    behalf. Such payments and  coverage  may  be  continued:  (1)
34    until  such  time  as the person returns to a status eligible
 
                            -19-     LRB093 08085 JLS 08286 b
 1    for coverage at State expense, but not to exceed  24  months,
 2    (2)  until  such person's employment or annuitant status with
 3    the State is terminated, or (3) for a  maximum  period  of  4
 4    years for members on military leave with pay and benefits and
 5    military  leave  without  pay  and benefits (exclusive of any
 6    additional service imposed pursuant to law).
 7        (f)  The Department shall  establish by rule  the  extent
 8    to which other employee benefits will continue for persons in
 9    non-pay status or who are not in active service.
10        (g)  The  State  shall  not  pay  the  cost  of the basic
11    non-contributory group  life  insurance,  program  of  health
12    benefits  and  other  employee  benefits  for members who are
13    survivors as defined by paragraphs (1) and (2) of  subsection
14    (q)  of  Section  3  of  this Act.  The costs of benefits for
15    these survivors shall be paid by  the  survivors  or  by  the
16    University  of Illinois Cooperative Extension Service, or any
17    combination thereof. However, the State shall pay the  amount
18    of  the  reduction  in  the  cost  of  participation, if any,
19    resulting from the amendment to subsection (a) made  by  this
20    amendatory Act of the 91st General Assembly.
21        (h)  Those   persons   occupying   positions   with   any
22    department  as a result of emergency appointments pursuant to
23    Section 8b.8 of the Personnel Code  who  are  not  considered
24    employees  under  this  Act  shall  be  given  the  option of
25    participating in the programs of group life insurance, health
26    benefits and other employee benefits.  Such persons  electing
27    coverage  may participate only by making payment equal to the
28    amount  normally  contributed  by  the  State  for  similarly
29    situated employees.  Such amounts shall be determined by  the
30    Director.   Such payments and coverage may be continued until
31    such time as the person becomes an employee pursuant to  this
32    Act or such person's appointment is terminated.
33        (i)  Any  unit  of  local  government within the State of
34    Illinois may apply to the Director  to  have  its  employees,
 
                            -20-     LRB093 08085 JLS 08286 b
 1    annuitants,   and  their  dependents  provided  group  health
 2    coverage  under  this  Act  on  a  non-insured   basis.    To
 3    participate,  a unit of local government must agree to enroll
 4    all of its employees, who may select  coverage  under  either
 5    the  State group health benefits plan or a health maintenance
 6    organization  that  has  contracted  with  the  State  to  be
 7    available as a health care provider for employees as  defined
 8    in  this  Act.   A  unit  of  local government must remit the
 9    entire cost of  providing  coverage  under  the  State  group
10    health   benefits  plan  or,  for  coverage  under  a  health
11    maintenance  organization,  an  amount  determined   by   the
12    Director  based  on  an  analysis of the sex, age, geographic
13    location, or other relevant  demographic  variables  for  its
14    employees, except that the unit of local government shall not
15    be  required to enroll those of its employees who are covered
16    spouses or dependents under this plan or another group policy
17    or  plan  providing  health  benefits  as  long  as  (1)   an
18    appropriate  official  from  the  unit  of  local  government
19    attests  that  each employee not enrolled is a covered spouse
20    or dependent under this plan or another group policy or plan,
21    and (2) at least 85% of the employees are  enrolled  and  the
22    unit  of local government remits the entire cost of providing
23    coverage to those  employees,  except  that  a  participating
24    school  district  must  have  enrolled  at  least  85% of its
25    full-time employees who have not waived  coverage  under  the
26    district's  group health plan by participating in a component
27    of the district's cafeteria  plan.   A  participating  school
28    district  is  not required to enroll a full-time employee who
29    has  waived  coverage  under  the  district's  health   plan,
30    provided  that an appropriate official from the participating
31    school district  attests  that  the  full-time  employee  has
32    waived  coverage  by  participating  in  a  component  of the
33    district's  cafeteria  plan.   For  the  purposes   of   this
34    subsection,  "participating  school district" includes a unit
 
                            -21-     LRB093 08085 JLS 08286 b
 1    of local government whose primary  purpose  is  education  as
 2    defined by the Department's rules.
 3        Employees of a participating unit of local government who
 4    are  not  enrolled due to coverage under another group health
 5    policy or plan may enroll in the event of a qualifying change
 6    in  status,  special  enrollment,  special  circumstance   as
 7    defined  by the Director, or during the annual Benefit Choice
 8    Period.  A participating unit of local  government  may  also
 9    elect  to  cover its annuitants.  Dependent coverage shall be
10    offered on an optional basis, with the costs paid by the unit
11    of local government, its employees, or  some  combination  of
12    the  two  as determined by the unit of local government.  The
13    unit of local government  shall  be  responsible  for  timely
14    collection and transmission of dependent premiums.
15        The  Director  shall  annually determine monthly rates of
16    payment, subject to the following constraints:
17             (1)  In the first year of coverage, the rates  shall
18        be   equal  to  the  amount  normally  charged  to  State
19        employees for elected optional coverages or for  enrolled
20        dependents  coverages or other contributory coverages, or
21        contributed by the State for basic insurance coverages on
22        behalf of its employees, adjusted for differences between
23        State employees and employees of the local government  in
24        age,   sex,   geographic   location   or  other  relevant
25        demographic variables, plus an amount sufficient  to  pay
26        for  the  additional  administrative  costs  of providing
27        coverage to employees of the unit of local government and
28        their dependents.
29             (2)  In subsequent years, a further adjustment shall
30        be  made  to  reflect  the  actual  prior  years'  claims
31        experience  of  the  employees  of  the  unit  of   local
32        government.
33        In  the  case  of  coverage of local government employees
34    under a health maintenance organization, the  Director  shall
 
                            -22-     LRB093 08085 JLS 08286 b
 1    annually  determine  for  each  participating  unit  of local
 2    government the maximum monthly amount the unit may contribute
 3    toward that coverage, based on an analysis of  (i)  the  age,
 4    sex,  geographic  location,  and  other  relevant demographic
 5    variables of the unit's employees and (ii) the cost to  cover
 6    those  employees  under the State group health benefits plan.
 7    The Director may  similarly  determine  the  maximum  monthly
 8    amount  each  unit  of local government may contribute toward
 9    coverage  of  its  employees'  dependents  under   a   health
10    maintenance organization.
11        Monthly  payments  by the unit of local government or its
12    employees  for  group  health   benefits   plan   or   health
13    maintenance  organization  coverage shall be deposited in the
14    Local Government Health Insurance Reserve Fund.
15        The Local Government Health Insurance Reserve Fund  shall
16    be  a continuing fund not subject to fiscal year limitations.
17    All expenditures from this Fund shall be  used  for  payments
18    for  health  care  benefits  for  local  government, domestic
19    violence shelter  or  service,  and  rehabilitation  facility
20    employees,  annuitants,  and dependents, and to reimburse the
21    Department or its administrative service organization for all
22    expenses incurred in  the  administration  of  benefits.   No
23    other State funds may be used for these purposes.
24        A  local government employer's participation or desire to
25    participate in a program created under this subsection  shall
26    not   limit   that   employer's  duty  to  bargain  with  the
27    representative of  any  collective  bargaining  unit  of  its
28    employees.
29        (j)  Any  rehabilitation  facility  within  the  State of
30    Illinois may apply to the Director  to  have  its  employees,
31    annuitants,  and  their  eligible  dependents  provided group
32    health coverage under this Act on  a  non-insured  basis.  To
33    participate,  a  rehabilitation facility must agree to enroll
34    all of its employees and remit the entire cost  of  providing
 
                            -23-     LRB093 08085 JLS 08286 b
 1    such   coverage   for   its   employees,   except   that  the
 2    rehabilitation facility shall not be required to enroll those
 3    of its employees who are covered spouses or dependents  under
 4    this  plan  or  another group policy or plan providing health
 5    benefits as long as (1)  an  appropriate  official  from  the
 6    rehabilitation   facility  attests  that  each  employee  not
 7    enrolled is a covered spouse or dependent under this plan  or
 8    another  group  policy  or  plan, and (2) at least 85% of the
 9    employees are enrolled and the rehabilitation facility remits
10    the entire cost of providing  coverage  to  those  employees.
11    Employees  of a participating rehabilitation facility who are
12    not enrolled due  to  coverage  under  another  group  health
13    policy or plan may enroll in the event of a qualifying change
14    in   status,  special  enrollment,  special  circumstance  as
15    defined by the Director, or during the annual Benefit  Choice
16    Period.   A  participating  rehabilitation  facility may also
17    elect to cover its annuitants. Dependent  coverage  shall  be
18    offered  on  an  optional  basis,  with the costs paid by the
19    rehabilitation facility, its employees, or  some  combination
20    of  the  2  as determined by the rehabilitation facility. The
21    rehabilitation  facility  shall  be  responsible  for  timely
22    collection and transmission of dependent premiums.
23        The Director shall annually determine quarterly rates  of
24    payment, subject to the following constraints:
25             (1)  In  the first year of coverage, the rates shall
26        be  equal  to  the  amount  normally  charged  to   State
27        employees  for elected optional coverages or for enrolled
28        dependents coverages or other contributory  coverages  on
29        behalf of its employees, adjusted for differences between
30        State  employees  and  employees  of  the  rehabilitation
31        facility  in  age,  sex,  geographic  location  or  other
32        relevant demographic variables, plus an amount sufficient
33        to   pay  for  the  additional  administrative  costs  of
34        providing coverage to  employees  of  the  rehabilitation
 
                            -24-     LRB093 08085 JLS 08286 b
 1        facility and their dependents.
 2             (2)  In subsequent years, a further adjustment shall
 3        be  made  to  reflect  the  actual  prior  years'  claims
 4        experience   of   the  employees  of  the  rehabilitation
 5        facility.
 6        Monthly payments by the rehabilitation  facility  or  its
 7    employees for group health benefits shall be deposited in the
 8    Local Government Health Insurance Reserve Fund.
 9        (k)  Any  domestic violence shelter or service within the
10    State of Illinois may apply  to  the  Director  to  have  its
11    employees,  annuitants,  and  their dependents provided group
12    health coverage under this Act on a  non-insured  basis.   To
13    participate,  a  domestic  violence  shelter  or service must
14    agree to enroll all of its employees and pay the entire  cost
15    of   providing   such   coverage   for   its   employees.   A
16    participating domestic violence shelter  may  also  elect  to
17    cover its annuitants.  Dependent coverage shall be offered on
18    an  optional  basis,  with  the  costs  paid  by the domestic
19    violence  shelter  or  service,  its   employees,   or   some
20    combination  of  the 2 as determined by the domestic violence
21    shelter or service.  The domestic violence shelter or service
22    shall be responsible for timely collection  and  transmission
23    of dependent premiums.
24        The  Director  shall annually determine rates of payment,
25    subject to the following constraints:
26             (1)  In the first year of coverage, the rates  shall
27        be   equal  to  the  amount  normally  charged  to  State
28        employees for elected optional coverages or for  enrolled
29        dependents  coverages  or other contributory coverages on
30        behalf of its employees, adjusted for differences between
31        State employees and employees of  the  domestic  violence
32        shelter  or  service  in age, sex, geographic location or
33        other relevant  demographic  variables,  plus  an  amount
34        sufficient to pay for the additional administrative costs
 
                            -25-     LRB093 08085 JLS 08286 b
 1        of  providing  coverage  to  employees  of  the  domestic
 2        violence shelter or service and their dependents.
 3             (2)  In subsequent years, a further adjustment shall
 4        be  made  to  reflect  the  actual  prior  years'  claims
 5        experience  of  the  employees  of  the domestic violence
 6        shelter or service.
 7        Monthly payments by  the  domestic  violence  shelter  or
 8    service  or its employees for group health insurance shall be
 9    deposited in the Local Government  Health  Insurance  Reserve
10    Fund.
11        (k-5)  Any  qualified  small  business  or  self-employed
12    person within the State of Illinois may apply to the Director
13    to  have  its  employees,  annuitants,  and  their dependents
14    provided  group  health  coverage  under  this   Act   on   a
15    non-insured   basis.    To  participate,  a  qualified  small
16    business or self-employed person must agree to enroll all  of
17    its  employees  and  pay  the  entire  cost of providing such
18    coverage for its employees.  A participating qualified  small
19    business  or self-employed person may also elect to cover its
20    annuitants.   Dependent  coverage  shall  be  offered  on  an
21    optional basis, with employees, or some combination of the  2
22    as   determined   by   the   qualified   small   business  or
23    self-employed  person.   The  qualified  small  business   or
24    self-employed   person   shall   be  responsible  for  timely
25    collection and transmission of dependent premiums.
26        The Director shall annually determine rates  of  payment,
27    subject to the following constraints:
28             (1)  In  the first year of coverage, the rates shall
29        be  equal  to  the  amount  normally  charged  to   State
30        employees  for elected optional coverages or for enrolled
31        dependents coverages or other contributory  coverages  on
32        behalf of its employees, adjusted for differences between
33        State  employees  and  employees  of  the qualified small
34        business or self-employed person in age, sex,  geographic
 
                            -26-     LRB093 08085 JLS 08286 b
 1        location or other relevant demographic variables, plus an
 2        amount    sufficient    to   pay   for   the   additional
 3        administrative costs of providing coverage  to  employees
 4        of  the  qualified small business or self-employed person
 5        and their dependents.
 6             (2)  In subsequent years, a further adjustment shall
 7        be  made  to  reflect  the  actual  prior  years'  claims
 8        experience  of  the  employees  of  the  qualified  small
 9        business or self-employed person.
10        Monthly payments  by  the  qualified  small  business  or
11    self-employed  person  for  group  health  insurance shall be
12    deposited into the Small Employers Health  Insurance  Reserve
13    Fund.   The  Small  Employers  Health  Insurance Reserve Fund
14    shall be  a  continuing  fund  not  subject  to  fiscal  year
15    limitations.   All  expenditures from this fund shall be used
16    for payments  for  health  care  benefits  for  self-employed
17    persons and employees of qualified small businesses and their
18    annuitants  and dependents and to reimburse the Department or
19    its administrative  service  organization  for  all  expenses
20    incurred  in  the administration of benefits.  No other State
21    funds may be used for these purposes.
22        (l)  A  public  community  college  or  entity  organized
23    pursuant to the Public Community College Act may apply to the
24    Director initially to have only annuitants not covered  prior
25    to July 1, 1992 by the district's health plan provided health
26    coverage   under  this  Act  on  a  non-insured  basis.   The
27    community  college  must  execute  a   2-year   contract   to
28    participate   in   the  Local  Government  Health  Plan.  Any
29    annuitant may enroll in the event of a qualifying  change  in
30    status,  special  enrollment, special circumstance as defined
31    by the Director, or during the annual Benefit Choice Period.
32        The Director shall annually determine  monthly  rates  of
33    payment  subject  to  the  following  constraints:  for those
34    community colleges with annuitants only enrolled, first  year
 
                            -27-     LRB093 08085 JLS 08286 b
 1    rates  shall be equal to the average cost to cover claims for
 2    a  State   member   adjusted   for   demographics,   Medicare
 3    participation,  and  other factors; and in the second year, a
 4    further adjustment of rates shall  be  made  to  reflect  the
 5    actual   first   year's  claims  experience  of  the  covered
 6    annuitants.
 7        (l-5)  The   provisions   of   subsection   (l)    become
 8    inoperative on July 1, 1999.
 9        (m)  The  Director shall adopt any rules deemed necessary
10    for implementation of this amendatory Act of 1989 (Public Act
11    86-978).
12    (Source: P.A. 91-280, eff.  7-23-99;  91-311;  eff.  7-29-99;
13    91-357,  eff.  7-29-99;  91-390,  eff.  7-30-99; 91-395, eff.
14    7-30-99; 91-617, eff. 8-19-99; 92-16, eff.  6-28-01;  revised
15    2-25-02.)

16        (5 ILCS 375/13.2) (from Ch. 127, par. 533.2)
17        Sec.  13.2.  Insurance  reserve  funds; investments.  All
18    amounts held in the Health Insurance Reserve Fund, the  Group
19    Insurance  Premium Fund, the Small Employers Health Insurance
20    Reserve Fund,  and  the  Local  Government  Health  Insurance
21    Reserve  Fund  shall  be  invested, at interest, by the State
22    Treasurer.   The  investments  shall  be  subject  to  terms,
23    conditions, and limitations imposed by the laws  of  Illinois
24    on  State  funds.   All  income  derived from the investments
25    shall accrue and be deposited to the respective funds no less
26    frequently than  quarterly.   The  Health  Insurance  Reserve
27    Fund,  the Small Employers Health Insurance Reserve Fund, and
28    the Local Government Health Insurance Reserve Fund  shall  be
29    administered by the Director.
30    (Source: P.A. 91-390, eff. 7-30-99.)

31        (5 ILCS 375/15) (from Ch. 127, par. 535)
32        Sec. 15.  Administration; rules; audit; review.
 
                            -28-     LRB093 08085 JLS 08286 b
 1        (a)  The  Director  shall  administer  this Act and shall
 2    prescribe such rules and regulations as are necessary to give
 3    full effect to the purposes of this Act.
 4        (b)  These rules may fix  reasonable  standards  for  the
 5    group  life  and  group  health  programs  and  other benefit
 6    programs offered under this  Act,  and  for  the  contractors
 7    providing them.
 8        (c)  These  rules shall specify that covered and optional
 9    medical services of the program are services provided  within
10    the   scope   of  their  licenses  by  practitioners  in  all
11    categories licensed under the Medical Practice  Act  of  1987
12    and shall provide that all eligible persons be fully informed
13    of this specification.
14        (d)  These rules shall establish eligibility requirements
15    for  members and dependents as may be necessary to supplement
16    or clarify requirements contained in this Act.
17        (e)  Each affected department of  the  State,  the  State
18    Universities  Retirement  System,  the  Teachers'  Retirement
19    System,  and  each qualified local government, rehabilitation
20    facility, or domestic  violence  shelter  or  service,  small
21    business,  or  self-employed  person shall keep such records,
22    make such  certifications,  and  furnish  the  Director  such
23    information  as  may  be  necessary for the administration of
24    this Act, including information concerning number  and  total
25    amounts  of  payroll  of  employees of the department who are
26    paid from trust funds or federal funds.
27        (f)  Each  member,   each   community   college   benefit
28    recipient  to  whom  this  Act  applies, and each TRS benefit
29    recipient  to  whom  this  Act  applies  shall  furnish   the
30    Director,  in  such  form as may be required, any information
31    that may be  necessary  to  enroll  such  member  or  benefit
32    recipient  and,  if  applicable,  his  or  her  dependents or
33    dependent beneficiaries under the programs or plan, including
34    such data as  may  be  required  to  allow  the  Director  to
 
                            -29-     LRB093 08085 JLS 08286 b
 1    accumulate   statistics   on   data  normally  considered  in
 2    actuarial studies  of  employee  groups.   Information  about
 3    community  college  benefit  recipients and community college
 4    dependent beneficiaries shall be furnished through the  State
 5    Universities   Retirement   System.   Information  about  TRS
 6    benefit recipients and TRS dependent beneficiaries  shall  be
 7    furnished through the Teachers' Retirement System.
 8        (g)  There  shall  be  audits and reports on the programs
 9    authorized and  established  by  this  Act  prepared  by  the
10    Director  with  the  assistance  of  a qualified, independent
11    accounting firm.  The reports shall  provide  information  on
12    the experience, and administrative effectiveness and adequacy
13    of the program including, when applicable, recommendations on
14    up-grading of benefits and improvement of the program.
15        (h)  Any  final  order,  decision  or other determination
16    made, issued or executed by the Director under the provisions
17    of this Act whereby any contractor  or  person  is  aggrieved
18    shall  be subject to review in accordance with the provisions
19    of the Administrative  Review  Law  and  all  amendments  and
20    modifications   thereof,   and  the  rules  adopted  pursuant
21    thereto, shall apply to and govern all  proceedings  for  the
22    judicial  review  of  final  administrative  decisions of the
23    Director.
24    (Source: P.A. 90-497, eff. 8-18-97; 91-390, eff. 7-30-99.)

25        Section 10.  The State Finance Act is amended by changing
26    Section 25 as follows:

27        (30 ILCS 105/25) (from Ch. 127, par. 161)
28        Sec. 25.  Fiscal year limitations.
29        (a)  All   appropriations   shall   be   available    for
30    expenditure for the fiscal year or for a lesser period if the
31    Act  making that appropriation so specifies.  A deficiency or
32    emergency appropriation shall be  available  for  expenditure
 
                            -30-     LRB093 08085 JLS 08286 b
 1    only  through  June  30  of the year when the Act making that
 2    appropriation is enacted unless that Act otherwise provides.
 3        (b)  Outstanding liabilities as of June 30, payable  from
 4    appropriations  which have otherwise expired, may be paid out
 5    of the expiring  appropriations  during  the  2-month  period
 6    ending  at  the  close of business on August 31.  Any service
 7    involving professional or artistic  skills  or  any  personal
 8    services  by  an  employee  whose  compensation is subject to
 9    income tax withholding must be performed as of June 30 of the
10    fiscal  year  in  order  to  be  considered  an  "outstanding
11    liability as of June 30" that is thereby eligible for payment
12    out of the expiring appropriation.
13        However, payment of tuition  reimbursement  claims  under
14    Section 14-7.03 or 18-3 of the School Code may be made by the
15    State  Board  of  Education from its appropriations for those
16    respective purposes for any  fiscal  year,  even  though  the
17    claims  reimbursed  by the payment may be claims attributable
18    to a prior fiscal year, and  payments  may  be  made  at  the
19    direction  of  the State Superintendent of Education from the
20    fund from which the appropriation is made without  regard  to
21    any fiscal year limitations.
22        Medical  payments  may  be  made  by  the  Department  of
23    Veterans'  Affairs from its appropriations for those purposes
24    for any fiscal year, without regard  to  the  fact  that  the
25    medical  services  being  compensated for by such payment may
26    have been rendered in a prior fiscal year.
27        Medical payments may be made by the Department of  Public
28    Aid  and child care payments may be made by the Department of
29    Human Services (as successor to the Department of Public Aid)
30    from appropriations for those purposes for any  fiscal  year,
31    without  regard  to  the  fact that the medical or child care
32    services being compensated for by such payment may have  been
33    rendered  in a prior fiscal year; and payments may be made at
34    the  direction  of  the  Department  of  Central   Management
 
                            -31-     LRB093 08085 JLS 08286 b
 1    Services  from  the  Health Insurance Reserve Fund, the Small
 2    Employers  Health  Insurance  Reserve  Fund,  and  the  Local
 3    Government Health Insurance Reserve Fund  without  regard  to
 4    any fiscal year limitations.
 5        Additionally,  payments  may be made by the Department of
 6    Human Services from its appropriations, or  any  other  State
 7    agency  from  its  appropriations  with  the  approval of the
 8    Department of Human Services, from the Immigration Reform and
 9    Control  Fund  for  purposes  authorized  pursuant   to   the
10    Immigration Reform and Control Act of 1986, without regard to
11    any fiscal year limitations.
12        Further,  with  respect to costs incurred in fiscal years
13    2002 and 2003  only,  payments  may  be  made  by  the  State
14    Treasurer from its appropriations from the Capital Litigation
15    Trust Fund without regard to any fiscal year limitations.
16        (c)  Further,  payments  may be made by the Department of
17    Public Health and the Department of Human Services (acting as
18    successor to  the  Department  of  Public  Health  under  the
19    Department  of  Human  Services  Act)  from  their respective
20    appropriations for grants for medical care to or on behalf of
21    persons  suffering  from  chronic  renal   disease,   persons
22    suffering  from  hemophilia,  rape victims, and premature and
23    high-mortality risk infants and their mothers and for  grants
24    for  supplemental  food  supplies  provided  under the United
25    States Department of Agriculture Women, Infants and  Children
26    Nutrition  Program, for any fiscal year without regard to the
27    fact that the services being compensated for by such  payment
28    may have been rendered in a prior fiscal year.
29        (d)  The  Department  of Public Health and the Department
30    of Human Services (acting as successor to the  Department  of
31    Public  Health  under  the  Department of Human Services Act)
32    shall each annually submit to the State  Comptroller,  Senate
33    President,  Senate  Minority  Leader,  Speaker  of the House,
34    House  Minority  Leader,  and  the  respective  Chairmen  and
 
                            -32-     LRB093 08085 JLS 08286 b
 1    Minority Spokesmen of the Appropriations  Committees  of  the
 2    Senate  and  the House, on or before December 31, a report of
 3    fiscal year funds used to pay for services  provided  in  any
 4    prior  fiscal year.  This report shall document by program or
 5    service category those expenditures from  the  most  recently
 6    completed  fiscal  year  used to pay for services provided in
 7    prior fiscal years.
 8        (e)  The Department of Public Aid and the  Department  of
 9    Human  Services  (acting  as  successor  to the Department of
10    Public  Aid)  shall  each  annually  submit  to   the   State
11    Comptroller,   Senate   President,  Senate  Minority  Leader,
12    Speaker of the House, House Minority Leader,  the  respective
13    Chairmen   and   Minority  Spokesmen  of  the  Appropriations
14    Committees of the Senate and the House, on or before November
15    30, a report  that  shall  document  by  program  or  service
16    category  those expenditures from the most recently completed
17    fiscal year used to pay for (i) services  provided  in  prior
18    fiscal years and (ii) services for which claims were received
19    in prior fiscal years.
20        (f)  The  Department  of  Human Services (as successor to
21    the Department of Public Aid) shall annually  submit  to  the
22    State  Comptroller, Senate President, Senate Minority Leader,
23    Speaker  of  the  House,  House  Minority  Leader,  and   the
24    respective   Chairmen   and   Minority   Spokesmen   of   the
25    Appropriations  Committees of the Senate and the House, on or
26    before December 31, a report of fiscal year funds used to pay
27    for services (other than medical care) provided in any  prior
28    fiscal  year.   This  report  shall  document  by  program or
29    service category those expenditures from  the  most  recently
30    completed  fiscal  year  used to pay for services provided in
31    prior fiscal years.
32        (g)  In addition,  each  annual  report  required  to  be
33    submitted  by  the  Department of Public Aid under subsection
34    (e) shall include the following information with  respect  to
 
                            -33-     LRB093 08085 JLS 08286 b
 1    the State's Medicaid program:
 2             (1)  Explanations   of   the  exact  causes  of  the
 3        variance between the previous year's estimated and actual
 4        liabilities.
 5             (2)  Factors  affecting  the  Department  of  Public
 6        Aid's liabilities, including but not limited  to  numbers
 7        of  aid recipients, levels of medical service utilization
 8        by aid recipients, and inflation in the cost  of  medical
 9        services.
10             (3)  The  results  of  the  Department's  efforts to
11        combat fraud and abuse.
12        (h)  As provided in Section 4  of  the  General  Assembly
13    Compensation  Act, any utility bill for service provided to a
14    General  Assembly  member's  district  office  for  a  period
15    including portions of 2 consecutive fiscal years may be  paid
16    from funds appropriated for such expenditure in either fiscal
17    year.
18        (i)  An agency which administers a fund classified by the
19    Comptroller as an internal service fund may issue rules for:
20             (1)  billing  user  agencies  in  advance  based  on
21        estimated charges for goods or services;
22             (2)  issuing  credits  during  the subsequent fiscal
23        year for all user agency  payments  received  during  the
24        prior  fiscal  year  which  were  in  excess of the final
25        amounts owed by the user agency for that period; and
26             (3)  issuing  catch-up  billings  to  user  agencies
27        during the subsequent fiscal year for  amounts  remaining
28        due  when  payments  received from the user agency during
29        the prior fiscal year were less  than  the  total  amount
30        owed for that period.
31    User  agencies  are  authorized to reimburse internal service
32    funds for catch-up billings by vouchers drawn  against  their
33    respective  appropriations  for  the fiscal year in which the
34    catch-up billing was issued.
 
                            -34-     LRB093 08085 JLS 08286 b
 1    (Source: P.A. 92-885, eff. 1-13-03.)

 2        Section 99.  Effective date.  This Act  takes  effect  on
 3    January 1, 2004.