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91_SB1652eng SB1652 Engrossed LRB9108551SMprA 1 AN ACT to amend the State Employees Group Insurance Act 2 of 1971 by changing Section 5. 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 Section 5 as follows: 7 (5 ILCS 375/5) (from Ch. 127, par. 525) 8 Sec. 5. The Director shall contract or otherwise make 9 available group life insurance, health benefits and other 10 employee benefits to eligible members and, where elected, 11 their eligible dependents. Any contract or, if applicable, 12 contracts or other arrangement for provision of benefits 13 shall be on terms deemed by the Director to be in the best 14 interest of the State of Illinois and its members based on, 15 but not limited to, such criteria as administrative cost, 16 service capabilities of the carrier or other contractor and 17 premiums, fees or charges as related to benefits. 18 The Director may prepare and issue specifications for 19 group life insurance, health benefits, other employee 20 benefits and administrative services for the purpose of 21 receiving proposals from interested parties. 22 The Director is authorized to execute a contract, or 23 contracts, for the programs of group life insurance, health 24 benefits, other employee benefits and administrative services 25 authorized by this Act. All of the benefits provided under 26 this Act may be included in one or more contracts, or the 27 benefits may be classified into different types with each 28 type included under one or more similar contracts with the 29 same or different companies. 30 The term of any contract may not extend beyond 10531fiscalyears. Upon recommendation of the Commission, the SB1652 Engrossed -2- LRB9108551SMprA 1 Director may exercise renewal options of the same contract 2 for up to a period of 105years. Any increases in premiums, 3 fees or charges requested by a contractor whose contract may 4 be renewed pursuant to a renewal option contained therein, 5 must be justified on the basis of (1) audited experience 6 data, (2) increases in the costs of health care services 7 provided under the contract, (3) contractor performance, (4) 8 increases in contractor responsibilities, or (5) any 9 combination thereof. 10 Any contractor shall agree to abide by all requirements 11 of this Act and Rules and Regulations promulgated and adopted 12 thereto; to submit such information and data as may from time 13 to time be deemed necessary by the Director for effective 14 administration of the provisions of this Act and the programs 15 established hereunder, and to fully cooperate in any audit. 16 (Source: P.A. 91-390, eff. 7-30-99.) 17 Section 99. Effective date. This Act takes effect upon 18 becoming law.