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| [ Introduced ] | [ Senate Amendment 001 ] |
91_SB0854eng SB854 Engrossed LRB9105994EGfg 1 AN ACT concerning retired teachers. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The State Employees Group Insurance Act of 5 1971 is amended by changing Sections 6.5 and 10 as follows: 6 (5 ILCS 375/6.5) 7 Sec. 6.5. Health benefits for TRS benefit recipients and 8 TRS dependent beneficiaries. 9 (a) Purpose. It is the purpose of this amendatory Act 10 of 1995 to transfer the administration of the program of 11 health benefits established for benefit recipients and their 12 dependent beneficiaries under Article 16 of the Illinois 13 Pension Code to the Department of Central Management 14 Services. 15 (b) Transition provisions. The Board of Trustees of the 16 Teachers' Retirement System shall continue to administer the 17 health benefit program established under Article 16 of the 18 Illinois Pension Code through December 31, 1995. Beginning 19 January 1, 1996, the Department of Central Management 20 Services shall be responsible for administering a program of 21 health benefits for TRS benefit recipients and TRS dependent 22 beneficiaries under this Section. The Department of Central 23 Management Services and the Teachers' Retirement System shall 24 cooperate in this endeavor and shall coordinate their 25 activities so as to ensure a smooth transition and 26 uninterrupted health benefit coverage. 27 (c) Eligibility. All persons who were enrolled in the 28 Article 16 program at the time of the transfer shall be 29 eligible to participate in the program established under this 30 Section without any interruption or delay in coverage or 31 limitation as to pre-existing medical conditions. SB854 Engrossed -2- LRB9105994EGfg 1 Eligibility to participate shall be determined by the 2 Teachers' Retirement System. Eligibility information shall 3 be communicated to the Department of Central Management 4 Services in a format acceptable to the Department. 5 (d) Coverage. The level of health benefits provided 6 under this Section shall be similar to the level of benefits 7 provided by the program previously established under Article 8 16 of the Illinois Pension Code; except that beginning in 9 State fiscal year 2001, the benefits and participant costs 10 for the following listed benefit areas shall be substantially 11 the same as for the program of basic health benefits provided 12 under this Act for retired State employees: 13 For Managed Health Care Plans: 14 (i) inpatient admission copayment. 15 For the Major Medical Plan: 16 (1) annual deductible; 17 (2) general out-of-pocket maximum; 18 (3) Medicare coordination of benefit. 19 Group life insurance benefits are not included in the 20 benefits to be provided to TRS benefit recipients and TRS 21 dependent beneficiaries under this Act. 22 The program of health benefits under this Section may 23 include any or all of the benefit limitations, including but 24 not limited to a reduction in benefits based on eligibility 25 for federal medicare benefits, that are provided under 26 subsection (a) of Section 6 of this Act for other health 27 benefit programs under this Act. 28 (e) Insurance rates and premiums. The Director shall 29 determine the insurance rates and premiums for TRS benefit 30 recipients and TRS dependent beneficiaries. For Fiscal Year 31 1996, the premium shall be equal to the premium actually 32 charged in Fiscal Year 1995. In subsequent years, the 33 premium shall never be lower than the premium charged in SB854 Engrossed -3- LRB9105994EGfg 1 Fiscal Year 1995. Rates and premiums may be based in part on 2 age and eligibility for federal medicare coverage. 3 The cost of health benefits under the program shall be 4 paid as follows: 5 (1) For a TRS benefit recipient selecting a managed 6 care program, up to 75% of the total insurance rate shall 7 be paid from the Teacher Health Insurance Security Fund. 8 (2) For a TRS benefit recipient selecting the major 9 medical coverage program, up to 50% of the total 10 insurance rate shall be paid from the Teacher Health 11 Insurance Security Fund if a managed care program is 12 accessible, as determined by the Teachers' Retirement 13 System. 14 (3) For a TRS benefit recipient selecting the major 15 medical coverage program, up to 75% of the total 16 insurance rate shall be paid from the Teacher Health 17 Insurance Security Fund if a managed care program is not 18 accessible, as determined by the Teachers' Retirement 19 System. 20 (4) The balance of the rate of insurance, including 21 the entire premium of any coverage for TRS dependent 22 beneficiaries that has been elected, shall be paid by 23 deductions authorized by the TRS benefit recipient to be 24 withheld from his or her monthly annuity or benefit 25 payment from the Teachers' Retirement System; except that 26 (i) if the balance of the cost of coverage exceeds the 27 amount of the monthly annuity or benefit payment, the 28 difference shall be paid directly to the Teachers' 29 Retirement System by the TRS benefit recipient, and (ii) 30 all or part of the balance of the cost of coverage may, 31 at the school board's option, be paid to the Teachers' 32 Retirement System by the school board of the school 33 district from which the TRS benefit recipient retired, in 34 accordance with Section 10-22.3b of the School Code. The SB854 Engrossed -4- LRB9105994EGfg 1 Teachers' Retirement System shall promptly deposit all 2 moneys withheld by or paid to it under this subdivision 3 (e)(4) into the Teacher Health Insurance Security Fund. 4 These moneys shall not be considered assets of the 5 Retirement System. 6 (f) Financing. Beginning July 1, 1995, all revenues 7 arising from the administration of the health benefit 8 programs established under Article 16 of the Illinois Pension 9 Code or this Section shall be deposited into the Teacher 10 Health Insurance Security Fund, which is hereby created as a 11 nonappropriated trust fund to be held outside the State 12 Treasury, with the State Treasurer as custodian. Any 13 interest earned on moneys in the Teacher Health Insurance 14 Security Fund shall be deposited into the Fund. 15 Moneys in the Teacher Health Insurance Security Fund 16 shall be used only to pay the costs of the health benefit 17 program established under this Section, including associated 18 administrative costs, and the costs associated with the 19 health benefit program established under Article 16 of the 20 Illinois Pension Code, as authorized in this Section. 21 Beginning July 1, 1995, the Department of Central Management 22 Services may make expenditures from the Teacher Health 23 Insurance Security Fund for those costs. 24 After other funds authorized for the payment of the costs 25 of the health benefit program established under Article 16 of 26 the Illinois Pension Code are exhausted and until January 1, 27 1996 (or such later date as may be agreed upon by the 28 Director of Central Management Services and the Secretary of 29 the Teachers' Retirement System), the Secretary of the 30 Teachers' Retirement System may make expenditures from the 31 Teacher Health Insurance Security Fund as necessary to pay up 32 to 75% of the cost of providing health coverage to eligible 33 benefit recipients (as defined in Sections 16-153.1 and 34 16-153.3 of the Illinois Pension Code) who are enrolled in SB854 Engrossed -5- LRB9105994EGfg 1 the Article 16 health benefit program and to facilitate the 2 transfer of administration of the health benefit program to 3 the Department of Central Management Services. 4 (g) Contract for benefits. The Director shall by 5 contract, self-insurance, or otherwise make available the 6 program of health benefits for TRS benefit recipients and 7 their TRS dependent beneficiaries that is provided for in 8 this Section. The contract or other arrangement for the 9 provision of these health benefits shall be on terms deemed 10 by the Director to be in the best interest of the State of 11 Illinois and the TRS benefit recipients based on, but not 12 limited to, such criteria as administrative cost, service 13 capabilities of the carrier or other contractor, and the 14 costs of the benefits. 15 (h) Continuation of program. It is the intention of the 16 General Assembly that the program of health benefits provided 17 under this Section be maintained on an ongoing, affordable 18 basis. The program of health benefits provided under this 19 Section may be amended by the State and is not intended to be 20 a pension or retirement benefit subject to protection under 21 Article XIII, Section 5 of the Illinois Constitution. 22 (Source: P.A. 89-21, eff. 6-21-95; 89-25, eff. 6-21-95.) 23 (5 ILCS 375/10) (from Ch. 127, par. 530) 24 Sec. 10. Payments by State; premiums. 25 (a) The State shall pay the cost of basic 26 non-contributory group life insurance and, subject to member 27 paid contributions set by the Department or required by this 28 Section, the basic program of group health benefits on each 29 eligible member, except a member, not otherwise covered by 30 this Act, who has retired as a participating member under 31 Article 2 of the Illinois Pension Code but is ineligible for 32 the retirement annuity under Section 2-119 of the Illinois 33 Pension Code, and part of each eligible member's and retired SB854 Engrossed -6- LRB9105994EGfg 1 member's premiums for health insurance coverage for enrolled 2 dependents as provided by Section 9. The State shall pay the 3 cost of the basic program of group health benefits only after 4 benefits are reduced by the amount of benefits covered by 5 Medicare for all retired members and retired dependents aged 6 65 years or older who are entitled to benefits under Social 7 Security or the Railroad Retirement system or who had 8 sufficient Medicare-covered government employment except that 9 such reduction in benefits shall apply only to those retired 10 members or retired dependents who (1) first become eligible 11 for such Medicare coverage on or after July 1, 1992; or (2) 12 remain eligible for, but no longer receive Medicare coverage 13 which they had been receiving on or after July 1, 1992. The 14 Department may determine the aggregate level of the State's 15 contribution on the basis of actual cost of medical services 16 adjusted for age, sex or geographic or other demographic 17 characteristics which affect the costs of such programs. 18 (a-1) Beginning January 1, 1998, for each person who 19 becomes a new SERS annuitant and participates in the basic 20 program of group health benefits, the State shall contribute 21 toward the cost of the annuitant's coverage under the basic 22 program of group health benefits an amount equal to 5% of 23 that cost for each full year of creditable service upon which 24 the annuitant's retirement annuity is based, up to a maximum 25 of 100% for an annuitant with 20 or more years of creditable 26 service. The remainder of the cost of a new SERS annuitant's 27 coverage under the basic program of group health benefits 28 shall be the responsibility of the annuitant. 29 (a-2) Beginning January 1, 1998, for each person who 30 becomes a new SERS survivor and participates in the basic 31 program of group health benefits, the State shall contribute 32 toward the cost of the survivor's coverage under the basic 33 program of group health benefits an amount equal to 5% of 34 that cost for each full year of the deceased employee's or SB854 Engrossed -7- LRB9105994EGfg 1 deceased annuitant's creditable service in the State 2 Employees' Retirement System of Illinois on the date of 3 death, up to a maximum of 100% for a survivor of an employee 4 or annuitant with 20 or more years of creditable service. 5 The remainder of the cost of the new SERS survivor's coverage 6 under the basic program of group health benefits shall be the 7 responsibility of the survivor. 8 (a-3) Beginning January 1, 1998, for each person who 9 becomes a new SURS annuitant and participates in the basic 10 program of group health benefits, the State shall contribute 11 toward the cost of the annuitant's coverage under the basic 12 program of group health benefits an amount equal to 5% of 13 that cost for each full year of creditable service upon which 14 the annuitant's retirement annuity is based, up to a maximum 15 of 100% for an annuitant with 20 or more years of creditable 16 service. The remainder of the cost of a new SURS annuitant's 17 coverage under the basic program of group health benefits 18 shall be the responsibility of the annuitant. 19 (a-4) Beginning January 1, 1998, for each person who 20 becomes a new SURS retired employee and participates in the 21 basic program of group health benefits, the State shall 22 contribute toward the cost of the retired employee's coverage 23 under the basic program of group health benefits an amount 24 equal to 5% of that cost for each full year that the retired 25 employee was an employee as defined in Section 3, up to a 26 maximum of 100% for a retired employee who was an employee 27 for 20 or more years. The remainder of the cost of a new 28 SURS retired employee's coverage under the basic program of 29 group health benefits shall be the responsibility of the 30 retired employee. 31 (a-5) Beginning January 1, 1998, for each person who 32 becomes a new SURS survivor and participates in the basic 33 program of group health benefits, the State shall contribute 34 toward the cost of the survivor's coverage under the basic SB854 Engrossed -8- LRB9105994EGfg 1 program of group health benefits an amount equal to 5% of 2 that cost for each full year of the deceased employee's or 3 deceased annuitant's creditable service in the State 4 Universities Retirement System on the date of death, up to a 5 maximum of 100% for a survivor of an employee or annuitant 6 with 20 or more years of creditable service. The remainder 7 of the cost of the new SURS survivor's coverage under the 8 basic program of group health benefits shall be the 9 responsibility of the survivor. 10 (a-6) Beginning July 1, 1998, for each person who 11 becomes a new TRS State annuitant and participates in the 12 basic program of group health benefits, the State shall 13 contribute toward the cost of the annuitant's coverage under 14 the basic program of group health benefits an amount equal to 15 5% of that cost for each full year of creditable service as a 16 teacher as defined in paragraph (2), (3), or (5) of Section 17 16-106 of the Illinois Pension Code upon which the 18 annuitant's retirement annuity is based, up to a maximum of 19 100% for an annuitant with 20 or more years of such 20 creditable service. The remainder of the cost of a new TRS 21 State annuitant's coverage under the basic program of group 22 health benefits shall be the responsibility of the 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% for a survivor of an employee or annuitant 33 with 20 or more years of such creditable service. The 34 remainder of the cost of the new TRS State survivor's SB854 Engrossed -9- LRB9105994EGfg 1 coverage under the basic program of group health benefits 2 shall be the responsibility of the survivor. 3 (a-8) A new SERS annuitant, new SERS survivor, new SURS 4 annuitant, new SURS retired employee, new SURS survivor, new 5 TRS State annuitant, or new TRS State survivor may waive or 6 terminate coverage in the program of group health benefits. 7 Any such annuitant, survivor, or retired employee who has 8 waived or terminated coverage may enroll or re-enroll in the 9 program of group health benefits only during the annual 10 benefit choice period, as determined by the Director; except 11 that in the event of termination of coverage due to 12 nonpayment of premiums, the annuitant, survivor, or retired 13 employee may not re-enroll in the program. 14 (a-9) No later than May 1 of each calendar year, the 15 Director of Central Management Services shall certify in 16 writing to the Executive Secretary of the State Employees' 17 Retirement System of Illinois and the Executive Director of 18 the Teachers' Retirement System of the State of Illinois the 19 amounts of the Medicare supplement health care premiums and 20 the amounts of the health care premiums for all other 21 retirees who are not Medicare eligible. 22 A separate calculation of the premiums based upon the 23 actual cost of each health care plan shall be so certified. 24 The Director of Central Management Services shall provide 25 to the Executive Secretary of the State Employees' Retirement 26 System of Illinois and the Executive Director of the 27 Teachers' Retirement System of the State of Illinois such 28 information, statistics, and other data as theyhe or shemay 29 require to review the premium amounts certified by the 30 Director of Central Management Services. 31 (b) State employees who become eligible for this program 32 on or after January 1, 1980 in positions normally requiring 33 actual performance of duty not less than 1/2 of a normal work 34 period but not equal to that of a normal work period, shall SB854 Engrossed -10- LRB9105994EGfg 1 be given the option of participating in the available 2 program. If the employee elects coverage, the State shall 3 contribute on behalf of such employee to the cost of the 4 employee's benefit and any applicable dependent supplement, 5 that sum which bears the same percentage as that percentage 6 of time the employee regularly works when compared to normal 7 work period. 8 (c) The basic non-contributory coverage from the basic 9 program of group health benefits shall be continued for each 10 employee not in pay status or on active service by reason of 11 (1) leave of absence due to illness or injury, (2) authorized 12 educational leave of absence or sabbatical leave, or (3) 13 military leave with pay and benefits. This coverage shall 14 continue until expiration of authorized leave and return to 15 active service, but not to exceed 24 months for leaves under 16 item (1) or (2). This 24-month limitation and the requirement 17 of returning to active service shall not apply to persons 18 receiving ordinary or accidental disability benefits or 19 retirement benefits through the appropriate State retirement 20 system or benefits under the Workers' Compensation or 21 Occupational Disease Act. 22 (d) The basic group life insurance coverage shall 23 continue, with full State contribution, where such person is 24 (1) absent from active service by reason of disability 25 arising from any cause other than self-inflicted, (2) on 26 authorized educational leave of absence or sabbatical leave, 27 or (3) on military leave with pay and benefits. 28 (e) Where the person is in non-pay status for a period 29 in excess of 30 days or on leave of absence, other than by 30 reason of disability, educational or sabbatical leave, or 31 military leave with pay and benefits, such person may 32 continue coverage only by making personal payment equal to 33 the amount normally contributed by the State on such person's 34 behalf. Such payments and coverage may be continued: (1) SB854 Engrossed -11- LRB9105994EGfg 1 until such time as the person returns to a status eligible 2 for coverage at State expense, but not to exceed 24 months, 3 (2) until such person's employment or annuitant status with 4 the State is terminated, or (3) for a maximum period of 4 5 years for members on military leave with pay and benefits and 6 military leave without pay and benefits (exclusive of any 7 additional service imposed pursuant to law). 8 (f) The Department shall establish by rule the extent 9 to which other employee benefits will continue for persons in 10 non-pay status or who are not in active service. 11 (g) The State shall not pay the cost of the basic 12 non-contributory group life insurance, program of health 13 benefits and other employee benefits for members who are 14 survivors as defined by paragraphs (1) and (2) of subsection 15 (q) of Section 3 of this Act. The costs of benefits for 16 these survivors shall be paid by the survivors or by the 17 University of Illinois Cooperative Extension Service, or any 18 combination thereof. 19 (h) Those persons occupying positions with any 20 department as a result of emergency appointments pursuant to 21 Section 8b.8 of the Personnel Code who are not considered 22 employees under this Act shall be given the option of 23 participating in the programs of group life insurance, health 24 benefits and other employee benefits. Such persons electing 25 coverage may participate only by making payment equal to the 26 amount normally contributed by the State for similarly 27 situated employees. Such amounts shall be determined by the 28 Director. Such payments and coverage may be continued until 29 such time as the person becomes an employee pursuant to this 30 Act or such person's appointment is terminated. 31 (i) Any unit of local government within the State of 32 Illinois may apply to the Director to have its employees, 33 annuitants, and their dependents provided group health 34 coverage under this Act on a non-insured basis. To SB854 Engrossed -12- LRB9105994EGfg 1 participate, a unit of local government must agree to enroll 2 all of its employees, who may select coverage under either 3 the State group health insurance plan or a health maintenance 4 organization that has contracted with the State to be 5 available as a health care provider for employees as defined 6 in this Act. A unit of local government must remit the 7 entire cost of providing coverage under the State group 8 health insurance plan or, for coverage under a health 9 maintenance organization, an amount determined by the 10 Director based on an analysis of the sex, age, geographic 11 location, or other relevant demographic variables for its 12 employees, except that the unit of local government shall not 13 be required to enroll those of its employees who are covered 14 spouses or dependents under this plan or another group policy 15 or plan providing health benefits as long as (1) an 16 appropriate official from the unit of local government 17 attests that each employee not enrolled is a covered spouse 18 or dependent under this plan or another group policy or plan, 19 and (2) at least 85% of the employees are enrolled and the 20 unit of local government remits the entire cost of providing 21 coverage to those employees. Employees of a participating 22 unit of local government who are not enrolled due to coverage 23 under another group health policy or plan may enroll at a 24 later date subject to submission of satisfactory evidence of 25 insurability and provided that no benefits shall be payable 26 for services incurred during the first 6 months of coverage 27 to the extent the services are in connection with any 28 pre-existing condition. A participating unit of local 29 government may also elect to cover its annuitants. Dependent 30 coverage shall be offered on an optional basis, with the 31 costs paid by the unit of local government, its employees, or 32 some combination of the two as determined by the unit of 33 local government. The unit of local government shall be 34 responsible for timely collection and transmission of SB854 Engrossed -13- LRB9105994EGfg 1 dependent premiums. 2 The Director shall annually determine monthly rates of 3 payment, subject to the following constraints: 4 (1) In the first year of coverage, the rates shall 5 be equal to the amount normally charged to State 6 employees for elected optional coverages or for enrolled 7 dependents coverages or other contributory coverages, or 8 contributed by the State for basic insurance coverages on 9 behalf of its employees, adjusted for differences between 10 State employees and employees of the local government in 11 age, sex, geographic location or other relevant 12 demographic variables, plus an amount sufficient to pay 13 for the additional administrative costs of providing 14 coverage to employees of the unit of local government and 15 their dependents. 16 (2) In subsequent years, a further adjustment shall 17 be made to reflect the actual prior years' claims 18 experience of the employees of the unit of local 19 government. 20 In the case of coverage of local government employees 21 under a health maintenance organization, the Director shall 22 annually determine for each participating unit of local 23 government the maximum monthly amount the unit may contribute 24 toward that coverage, based on an analysis of (i) the age, 25 sex, geographic location, and other relevant demographic 26 variables of the unit's employees and (ii) the cost to cover 27 those employees under the State group health insurance plan. 28 The Director may similarly determine the maximum monthly 29 amount each unit of local government may contribute toward 30 coverage of its employees' dependents under a health 31 maintenance organization. 32 Monthly payments by the unit of local government or its 33 employees for group health insurance or health maintenance 34 organization coverage shall be deposited in the Local SB854 Engrossed -14- LRB9105994EGfg 1 Government Health Insurance Reserve Fund. The Local 2 Government Health Insurance Reserve Fund shall be a 3 continuing fund not subject to fiscal year limitations. All 4 expenditures from this fund shall be used for payments for 5 health care benefits for local government and rehabilitation 6 facility employees, annuitants, and dependents, and to 7 reimburse the Department or its administrative service 8 organization for all expenses incurred in the administration 9 of benefits. No other State funds may be used for these 10 purposes. 11 A local government employer's participation or desire to 12 participate in a program created under this subsection shall 13 not limit that employer's duty to bargain with the 14 representative of any collective bargaining unit of its 15 employees. 16 (j) Any rehabilitation facility within the State of 17 Illinois may apply to the Director to have its employees, 18 annuitants, and their dependents provided group health 19 coverage under this Act on a non-insured basis. To 20 participate, a rehabilitation facility must agree to enroll 21 all of its employees and remit the entire cost of providing 22 such coverage for its employees, except that the 23 rehabilitation facility shall not be required to enroll those 24 of its employees who are covered spouses or dependents under 25 this plan or another group policy or plan providing health 26 benefits as long as (1) an appropriate official from the 27 rehabilitation facility attests that each employee not 28 enrolled is a covered spouse or dependent under this plan or 29 another group policy or plan, and (2) at least 85% of the 30 employees are enrolled and the rehabilitation facility remits 31 the entire cost of providing coverage to those employees. 32 Employees of a participating rehabilitation facility who are 33 not enrolled due to coverage under another group health 34 policy or plan may enroll at a later date subject to SB854 Engrossed -15- LRB9105994EGfg 1 submission of satisfactory evidence of insurability and 2 provided that no benefits shall be payable for services 3 incurred during the first 6 months of coverage to the extent 4 the services are in connection with any pre-existing 5 condition. A participating rehabilitation facility may also 6 elect to cover its annuitants. Dependent coverage shall be 7 offered on an optional basis, with the costs paid by the 8 rehabilitation facility, its employees, or some combination 9 of the 2 as determined by the rehabilitation facility. The 10 rehabilitation facility shall be responsible for timely 11 collection and transmission of dependent premiums. 12 The Director shall annually determine quarterly rates of 13 payment, subject to the following constraints: 14 (1) In the first year of coverage, the rates shall 15 be equal to the amount normally charged to State 16 employees for elected optional coverages or for enrolled 17 dependents coverages or other contributory coverages on 18 behalf of its employees, adjusted for differences between 19 State employees and employees of the rehabilitation 20 facility in age, sex, geographic location or other 21 relevant demographic variables, plus an amount sufficient 22 to pay for the additional administrative costs of 23 providing coverage to employees of the rehabilitation 24 facility and their dependents. 25 (2) In subsequent years, a further adjustment shall 26 be made to reflect the actual prior years' claims 27 experience of the employees of the rehabilitation 28 facility. 29 Monthly payments by the rehabilitation facility or its 30 employees for group health insurance shall be deposited in 31 the Local Government Health Insurance Reserve Fund. 32 (k) Any domestic violence shelter or service within the 33 State of Illinois may apply to the Director to have its 34 employees, annuitants, and their dependents provided group SB854 Engrossed -16- LRB9105994EGfg 1 health coverage under this Act on a non-insured basis. To 2 participate, a domestic violence shelter or service must 3 agree to enroll all of its employees and pay the entire cost 4 of providing such coverage for its employees. A 5 participating domestic violence shelter may also elect to 6 cover its annuitants. Dependent coverage shall be offered on 7 an optional basis, with employees, or some combination of the 8 2 as determined by the domestic violence shelter or service. 9 The domestic violence shelter or service shall be responsible 10 for timely collection and transmission of dependent premiums. 11 The Director shall annually determine quarterly rates of 12 payment, subject to the following constraints: 13 (1) In the first year of coverage, the rates shall 14 be equal to the amount normally charged to State 15 employees for elected optional coverages or for enrolled 16 dependents coverages or other contributory coverages on 17 behalf of its employees, adjusted for differences between 18 State employees and employees of the domestic violence 19 shelter or service in age, sex, geographic location or 20 other relevant demographic variables, plus an amount 21 sufficient to pay for the additional administrative costs 22 of providing coverage to employees of the domestic 23 violence shelter or service and their dependents. 24 (2) In subsequent years, a further adjustment shall 25 be made to reflect the actual prior years' claims 26 experience of the employees of the domestic violence 27 shelter or service. 28 (3) In no case shall the rate be less than the 29 amount normally charged to State employees or contributed 30 by the State on behalf of its employees. 31 Monthly payments by the domestic violence shelter or 32 service or its employees for group health insurance shall be 33 deposited in the Local Government Health Insurance Reserve 34 Fund. SB854 Engrossed -17- LRB9105994EGfg 1 (l) A public community college or entity organized 2 pursuant to the Public Community College Act may apply to the 3 Director initially to have only annuitants not covered prior 4 to July 1, 1992 by the district's health plan provided health 5 coverage under this Act on a non-insured basis. The 6 community college must execute a 2-year contract to 7 participate in the Local Government Health Plan. Those 8 annuitants enrolled initially under this contract shall have 9 no benefits payable for services incurred during the first 6 10 months of coverage to the extent the services are in 11 connection with any pre-existing condition. Any annuitant 12 who may enroll after this initial enrollment period shall be 13 subject to submission of satisfactory evidence of 14 insurability and to the pre-existing conditions limitation. 15 The Director shall annually determine monthly rates of 16 payment subject to the following constraints: for those 17 community colleges with annuitants only enrolled, first year 18 rates shall be equal to the average cost to cover claims for 19 a State member adjusted for demographics, Medicare 20 participation, and other factors; and in the second year, a 21 further adjustment of rates shall be made to reflect the 22 actual first year's claims experience of the covered 23 annuitants. 24 (m) The Director shall adopt any rules deemed necessary 25 for implementation of this amendatory Act of 1989 (Public Act 26 86-978). 27 (Source: P.A. 89-53, eff. 7-1-95; 89-236, eff. 8-4-95; 28 89-324, eff. 8-13-95; 89-626, eff. 8-9-96; 90-65, eff. 29 7-7-97; 90-582, eff. 5-27-98; 90-655, eff. 7-30-98; revised 30 8-3-98.) 31 Section 99. Effective date. This Act takes effect upon 32 becoming law.