093_HB2531

 
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 1        AN ACT concerning State employee benefits.

 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 Section 6 as follows:

 6        (5 ILCS 375/6) (from Ch. 127, par. 526)
 7        Sec. 6.  Program of health benefits.
 8        (a)  The program of health  benefits  shall  provide  for
 9    protection   against  the  financial  costs  of  health  care
10    expenses incurred in and  out  of  hospital  including  basic
11    hospital-surgical-medical   coverages.   The   program  shall
12    include coverage for hearing evaluations, hearing  aids,  and
13    the  dispensing and fitting of hearing aids.  The program may
14    include, but shall  not  be  limited  to,  such  supplemental
15    coverages  as  out-patient  diagnostic  X-ray  and laboratory
16    expenses, prescription drugs,  dental  services  and  similar
17    group benefits as are now or may become available.   However,
18    nothing in this Act shall be construed to permit, on or after
19    July  1,  1980,  the  non-contributory  portion  of  any such
20    program to include the expenses  of  obtaining  an  abortion,
21    induced miscarriage or induced premature birth unless, in the
22    opinion of a physician, such procedures are necessary for the
23    preservation of the life of the woman seeking such treatment,
24    or  except  an  induced premature birth intended to produce a
25    live viable child and such procedure  is  necessary  for  the
26    health  of  the  mother  or the unborn child. The program may
27    also include coverage for those  who  rely  on  treatment  by
28    prayer  or  spiritual  means  alone for healing in accordance
29    with the  tenets  and  practice  of  a  recognized  religious
30    denomination.
31        The  program  of health benefits shall be designed by the
 
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 1    Director (1) to provide a reasonable relationship between the
 2    benefits to be included  and  the  expected  distribution  of
 3    expenses  of  each  such  type  to be incurred by the covered
 4    members and dependents, (2) to specify, as  covered  benefits
 5    and   as   optional   benefits,   the   medical  services  of
 6    practitioners in all categories licensed  under  the  Medical
 7    Practice  Act  of  1987,  (3) to include reasonable controls,
 8    which may include  deductible  and  co-insurance  provisions,
 9    applicable  to some or all of the benefits, or a coordination
10    of benefits provision, to  prevent  or  minimize  unnecessary
11    utilization  of  the  various  hospital, surgical and medical
12    expenses to be provided and to provide  reasonable  assurance
13    of  stability  of the program, and (4) to provide benefits to
14    the extent possible to members throughout the State, wherever
15    located, on an equitable  basis.  Notwithstanding  any  other
16    provision  of  this  Section  or  Act,  for  all  members  or
17    dependents   who  are  eligible  for  benefits  under  Social
18    Security  or  the  Railroad  Retirement  system  or  who  had
19    sufficient  Medicare-covered   government   employment,   the
20    Department  shall  reduce  benefits  which would otherwise be
21    paid by Medicare, by the amount of  benefits  for  which  the
22    member or dependents are eligible under Medicare, except that
23    such  reduction in benefits shall apply only to those members
24    or dependents who (1) first become eligible for such medicare
25    coverage on or after the effective date  of  this  amendatory
26    Act   of  1992;  or  (2)  are  Medicare-eligible  members  or
27    dependents  of  a   local   government   unit   which   began
28    participation in the program on or after July 1, 1992; or (3)
29    remain  eligible  for but no longer receive Medicare coverage
30    which they had been receiving on or after the effective  date
31    of this amendatory Act of 1992.
32        Notwithstanding any other provisions of this Act, where a
33    covered  member or dependents are eligible for benefits under
34    the federal Medicare health insurance program (Title XVIII of
 
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 1    the Social Security Act as added by Public  Law  89-97,  89th
 2    Congress),  benefits paid under the State of Illinois program
 3    or plan will be reduced by the amount  of  benefits  paid  by
 4    Medicare.    For  members  or dependents who are eligible for
 5    benefits under Social Security  or  the  Railroad  Retirement
 6    system  or  who  had  sufficient  Medicare-covered government
 7    employment, benefits shall be reduced by the amount for which
 8    the member or dependent is eligible  under  Medicare,  except
 9    that  such  reduction  in  benefits shall apply only to those
10    members or dependents who (1) first become eligible for  such
11    Medicare  coverage  on  or  after  the effective date of this
12    amendatory Act of 1992; or (2) are Medicare-eligible  members
13    or   dependents  of  a  local  government  unit  which  began
14    participation in the program on or after July 1, 1992; or (3)
15    remain eligible for, but no longer receive Medicare  coverage
16    which  they had been receiving on or after the effective date
17    of this amendatory Act of 1992.  Premiums  may  be  adjusted,
18    where  applicable,  to an amount deemed by the Director to be
19    reasonably consistent with any reduction of benefits.
20        (b)  A member, not otherwise covered by this Act, who has
21    retired as a participating member  under  Article  2  of  the
22    Illinois  Pension  Code  but is ineligible for the retirement
23    annuity under Section 2-119 of  the  Illinois  Pension  Code,
24    shall pay the premiums for coverage, not exceeding the amount
25    paid by the State for the non-contributory coverage for other
26    members,  under  the group health benefits program under this
27    Act.  The Director shall determine the premiums to be paid by
28    a member under this subsection (b).
29    (Source: P.A. 91-390, eff. 7-30-99.)

30        Section 99.  Effective date.  This Act  takes  effect  on
31    July 1, 2003.