Illinois General Assembly - Full Text of SB0175
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Full Text of SB0175  97th General Assembly

SB0175sam001 97TH GENERAL ASSEMBLY

Sen. Jeffrey M. Schoenberg

Filed: 5/25/2011

 

 


 

 


 
09700SB0175sam001LRB097 04017 JDS 56242 a

1
AMENDMENT TO SENATE BILL 175

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1interest earned by moneys in the funds or accounts shall inure
2to the Local Government Health Insurance Reserve Fund. The
3transferred moneys, and interest accrued thereon, shall be used
4exclusively for transfers to administrative service
5organizations or their financial institutions for payments of
6claims to claimants and providers under the self-insurance
7health plan. The transferred moneys, and interest accrued
8thereon, shall not be used for any other purpose including, but
9not limited to, reimbursement of administration fees due the
10administrative service organization pursuant to its contract
11or contracts with the Department.
12    (a-10) Notwithstanding any provision of this Act to the
13contrary, beginning January 1, 2012, annuitants and survivors
14must pay premiums in order to obtain coverage for themselves
15and any dependents under the program of group health benefits
16provided under this Act. The Director shall determine the
17amount of the premium to be paid by each annuitant and
18survivor, based upon a system that takes into account (i)
19points, which are calculated by summing the retiree's age when
20benefits commenced and his or her total years of service, and
21(ii) annual household annual income, according to the following
22schedule:
23        (1) For retirees with 78 or fewer points and:
24            (A) An estimated household income of less than
25        $30,000, 0% of the applicable premium.
26            (B) An estimated household income of at least

 

 

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1        $30,000 but less than $60,000, 55% of the applicable
2        premium.
3            (C) An estimated household income of at least
4        $60,000 but less than $100,000, 65% of the applicable
5        premium.
6            (D) An estimated household income of at least
7        $100,000 but less than $200,000, 75% of the applicable
8        premium.
9            (E) An estimated household income of at least
10        $200,000 but less than $250,000, 100% of the applicable
11        premium.
12            (F) An estimated household income of $250,000 or
13        more, 100% of the applicable premium.
14        (2) For retirees with 79 to 85 points and:
15            (A) An estimated household income of less than
16        $30,000, 0% of the applicable premium.
17            (B) An estimated household income of at least
18        $30,000 but less than $60,000, 50% of the applicable
19        premium.
20            (C) An estimated household income of at least
21        $60,000 but less than $100,000, 60% of the applicable
22        premium.
23            (D) An estimated household income of at least
24        $100,000 but less than $200,000, 70% of the applicable
25        premium.
26            (E) An estimated household income of at least

 

 

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1        $200,000 but less than $250,000, 100% of the applicable
2        premium.
3            (F) An estimated household income of $250,000 or
4        more, 100% of the applicable premium.
5        (3) For retirees with 86 to 92 points and:
6            (A) An estimated household income of less than
7        $30,000, 0% of the applicable premium.
8            (B) An estimated household income of at least
9        $30,000 but less than $60,000, 45% of the applicable
10        premium.
11            (C) An estimated household income of at least
12        $60,000 but less than $100,000, 55% of the applicable
13        premium.
14            (D) An estimated household income of at least
15        $100,000 but less than $200,000, 65% of the applicable
16        premium.
17            (E) An estimated household income of at least
18        $200,000 but less than $250,000, 100% of the applicable
19        premium.
20            (F) An estimated household income of $250,000 or
21        more, 100% of the applicable premium.
22        (4) For retirees with 93 or more points and:
23            (A) An estimated household income of less than
24        $30,000, 0% of the applicable premium.
25            (B) An estimated household income of at least
26        $30,000 but less than $60,000, 35% of the applicable

 

 

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1        premium.
2            (C) An estimated household income of at least
3        $60,000 but less than $100,000, 45% of the applicable
4        premium.
5            (D) An estimated household income of at least
6        $100,000 but less than $200,000, 55% of the applicable
7        premium.
8            (E) An estimated household income of at least
9        $200,000 but less than $250,000, 100% of the applicable
10        premium.
11            (F) An estimated household income of $250,000 or
12        more, 100% of the applicable premium.
13    The Director shall establish a process for determining a
14retiree's household income by administrative rule. This
15income-verification process must use a retiree's pension
16income as the basis for determining his or her household
17income. The Director shall also establish by rule a process for
18retirees to appeal determinations of household income.
19    The obligation of each annuitant and survivor to pay the
20required premium applies only to the extent that the obligation
21is consistent with any contractual obligations existing in any
22collective bargaining agreement in effect on the effective date
23of this amendatory Act of the 97th General Assembly.
24    Beginning July 1, 2012, the Director may alter the schedule
25above to ensure that 49% of the costs associated with the basic
26program of group health benefits are covered by participating

 

 

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1annuitants, survivors, and dependents.
2    (b) State employees who become eligible for this program on
3or after January 1, 1980 in positions normally requiring actual
4performance of duty not less than 1/2 of a normal work period
5but not equal to that of a normal work period, shall be given
6the option of participating in the available program. If the
7employee elects coverage, the State shall contribute on behalf
8of such employee to the cost of the employee's benefit and any
9applicable dependent supplement, that sum which bears the same
10percentage as that percentage of time the employee regularly
11works when compared to normal work period.
12    (c) The basic non-contributory coverage from the basic
13program of group health benefits shall be continued for each
14employee not in pay status or on active service by reason of
15(1) leave of absence due to illness or injury, (2) authorized
16educational leave of absence or sabbatical leave, or (3)
17military leave. This coverage shall continue until expiration
18of authorized leave and return to active service, but not to
19exceed 24 months for leaves under item (1) or (2). This
2024-month limitation and the requirement of returning to active
21service shall not apply to persons receiving ordinary or
22accidental disability benefits or retirement benefits through
23the appropriate State retirement system or benefits under the
24Workers' Compensation or Occupational Disease Act.
25    (d) The basic group life insurance coverage shall continue,
26with full State contribution, where such person is (1) absent

 

 

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1from active service by reason of disability arising from any
2cause other than self-inflicted, (2) on authorized educational
3leave of absence or sabbatical leave, or (3) on military leave.
4    (e) Where the person is in non-pay status for a period in
5excess of 30 days or on leave of absence, other than by reason
6of disability, educational or sabbatical leave, or military
7leave, such person may continue coverage only by making
8personal payment equal to the amount normally contributed by
9the State on such person's behalf. Such payments and coverage
10may be continued: (1) until such time as the person returns to
11a status eligible for coverage at State expense, but not to
12exceed 24 months or (2) until such person's employment or
13annuitant status with the State is terminated (exclusive of any
14additional service imposed pursuant to law).
15    (f) The Department shall establish by rule the extent to
16which other employee benefits will continue for persons in
17non-pay status or who are not in active service.
18    (g) The State shall not pay the cost of the basic
19non-contributory group life insurance, program of health
20benefits and other employee benefits for members who are
21survivors as defined by paragraphs (1) and (2) of subsection
22(q) of Section 3 of this Act. The costs of benefits for these
23survivors shall be paid by the survivors or by the University
24of Illinois Cooperative Extension Service, or any combination
25thereof. However, the State shall pay the amount of the
26reduction in the cost of participation, if any, resulting from

 

 

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1the amendment to subsection (a) made by this amendatory Act of
2the 91st General Assembly.
3    (h) Those persons occupying positions with any department
4as a result of emergency appointments pursuant to Section 8b.8
5of the Personnel Code who are not considered employees under
6this Act shall be given the option of participating in the
7programs of group life insurance, health benefits and other
8employee benefits. Such persons electing coverage may
9participate only by making payment equal to the amount normally
10contributed by the State for similarly situated employees. Such
11amounts shall be determined by the Director. Such payments and
12coverage may be continued until such time as the person becomes
13an employee pursuant to this Act or such person's appointment
14is terminated.
15    (i) Any unit of local government within the State of
16Illinois may apply to the Director to have its employees,
17annuitants, and their dependents provided group health
18coverage under this Act on a non-insured basis. To participate,
19a unit of local government must agree to enroll all of its
20employees, who may select coverage under either the State group
21health benefits plan or a health maintenance organization that
22has contracted with the State to be available as a health care
23provider for employees as defined in this Act. A unit of local
24government must remit the entire cost of providing coverage
25under the State group health benefits plan or, for coverage
26under a health maintenance organization, an amount determined

 

 

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1by the Director based on an analysis of the sex, age,
2geographic location, or other relevant demographic variables
3for its employees, except that the unit of local government
4shall not be required to enroll those of its employees who are
5covered spouses or dependents under this plan or another group
6policy or plan providing health benefits as long as (1) an
7appropriate official from the unit of local government attests
8that each employee not enrolled is a covered spouse or
9dependent under this plan or another group policy or plan, and
10(2) at least 50% of the employees are enrolled and the unit of
11local government remits the entire cost of providing coverage
12to those employees, except that a participating school district
13must have enrolled at least 50% of its full-time employees who
14have not waived coverage under the district's group health plan
15by participating in a component of the district's cafeteria
16plan. A participating school district is not required to enroll
17a full-time employee who has waived coverage under the
18district's health plan, provided that an appropriate official
19from the participating school district attests that the
20full-time employee has waived coverage by participating in a
21component of the district's cafeteria plan. For the purposes of
22this subsection, "participating school district" includes a
23unit of local government whose primary purpose is education as
24defined by the Department's rules.
25    Employees of a participating unit of local government who
26are not enrolled due to coverage under another group health

 

 

09700SB0175sam001- 16 -LRB097 04017 JDS 56242 a

1policy or plan may enroll in the event of a qualifying change
2in status, special enrollment, special circumstance as defined
3by the Director, or during the annual Benefit Choice Period. A
4participating unit of local government may also elect to cover
5its annuitants. Dependent coverage shall be offered on an
6optional basis, with the costs paid by the unit of local
7government, its employees, or some combination of the two as
8determined by the unit of local government. The unit of local
9government shall be responsible for timely collection and
10transmission of dependent premiums.
11    The Director shall annually determine monthly rates of
12payment, subject to the following constraints:
13        (1) In the first year of coverage, the rates shall be
14    equal to the amount normally charged to State employees for
15    elected optional coverages or for enrolled dependents
16    coverages or other contributory coverages, or contributed
17    by the State for basic insurance coverages on behalf of its
18    employees, adjusted for differences between State
19    employees and employees of the local government in age,
20    sex, geographic location or other relevant demographic
21    variables, plus an amount sufficient to pay for the
22    additional administrative costs of providing coverage to
23    employees of the unit of local government and their
24    dependents.
25        (2) In subsequent years, a further adjustment shall be
26    made to reflect the actual prior years' claims experience

 

 

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1    of the employees of the unit of local government.
2    In the case of coverage of local government employees under
3a health maintenance organization, the Director shall annually
4determine for each participating unit of local government the
5maximum monthly amount the unit may contribute toward that
6coverage, based on an analysis of (i) the age, sex, geographic
7location, and other relevant demographic variables of the
8unit's employees and (ii) the cost to cover those employees
9under the State group health benefits plan. The Director may
10similarly determine the maximum monthly amount each unit of
11local government may contribute toward coverage of its
12employees' dependents under a health maintenance organization.
13    Monthly payments by the unit of local government or its
14employees for group health benefits plan or health maintenance
15organization coverage shall be deposited in the Local
16Government Health Insurance Reserve Fund.
17    The Local Government Health Insurance Reserve Fund is
18hereby created as a nonappropriated trust fund to be held
19outside the State Treasury, with the State Treasurer as
20custodian. The Local Government Health Insurance Reserve Fund
21shall be a continuing fund not subject to fiscal year
22limitations. The Local Government Health Insurance Reserve
23Fund is not subject to administrative charges or charge-backs,
24including but not limited to those authorized under Section 8h
25of the State Finance Act. All revenues arising from the
26administration of the health benefits program established

 

 

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1under this Section shall be deposited into the Local Government
2Health Insurance Reserve Fund. Any interest earned on moneys in
3the Local Government Health Insurance Reserve Fund shall be
4deposited into the Fund. All expenditures from this Fund shall
5be used for payments for health care benefits for local
6government and rehabilitation facility employees, annuitants,
7and dependents, and to reimburse the Department or its
8administrative service organization for all expenses incurred
9in the administration of benefits. No other State funds may be
10used for these purposes.
11    A local government employer's participation or desire to
12participate in a program created under this subsection shall
13not limit that employer's duty to bargain with the
14representative of any collective bargaining unit of its
15employees.
16    (j) Any rehabilitation facility within the State of
17Illinois may apply to the Director to have its employees,
18annuitants, and their eligible dependents provided group
19health coverage under this Act on a non-insured basis. To
20participate, a rehabilitation facility must agree to enroll all
21of its employees and remit the entire cost of providing such
22coverage for its employees, except that the rehabilitation
23facility shall not be required to enroll those of its employees
24who are covered spouses or dependents under this plan or
25another group policy or plan providing health benefits as long
26as (1) an appropriate official from the rehabilitation facility

 

 

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

 

 

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1    the additional administrative costs of providing coverage
2    to employees of the rehabilitation facility and their
3    dependents.
4        (2) In subsequent years, a further adjustment shall be
5    made to reflect the actual prior years' claims experience
6    of the employees of the rehabilitation facility.
7    Monthly payments by the rehabilitation facility or its
8employees for group health benefits shall be deposited in the
9Local Government Health Insurance Reserve Fund.
10    (k) Any domestic violence shelter or service within the
11State of Illinois may apply to the Director to have its
12employees, annuitants, and their dependents provided group
13health coverage under this Act on a non-insured basis. To
14participate, a domestic violence shelter or service must agree
15to enroll all of its employees and pay the entire cost of
16providing such coverage for its employees. The domestic
17violence shelter shall not be required to enroll those of its
18employees who are covered spouses or dependents under this plan
19or another group policy or plan providing health benefits as
20long as (1) an appropriate official from the domestic violence
21shelter attests that each employee not enrolled is a covered
22spouse or dependent under this plan or another group policy or
23plan and (2) at least 50% of the employees are enrolled and the
24domestic violence shelter remits the entire cost of providing
25coverage to those employees. Employees of a participating
26domestic violence shelter who are not enrolled due to coverage

 

 

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1under another group health policy or plan may enroll in the
2event of a qualifying change in status, special enrollment, or
3special circumstance as defined by the Director or during the
4annual Benefit Choice Period. A participating domestic
5violence shelter may also elect to cover its annuitants.
6Dependent coverage shall be offered on an optional basis, with
7employees, or some combination of the 2 as determined by the
8domestic violence shelter or service. The domestic violence
9shelter or service shall be responsible for timely collection
10and transmission of dependent premiums.
11    The Director shall annually determine rates of payment,
12subject to the following constraints:
13        (1) In the first year of coverage, the rates shall be
14    equal to the amount normally charged to State employees for
15    elected optional coverages or for enrolled dependents
16    coverages or other contributory coverages on behalf of its
17    employees, adjusted for differences between State
18    employees and employees of the domestic violence shelter or
19    service in age, sex, geographic location or other relevant
20    demographic variables, plus an amount sufficient to pay for
21    the additional administrative costs of providing coverage
22    to employees of the domestic violence shelter or service
23    and their dependents.
24        (2) In subsequent years, a further adjustment shall be
25    made to reflect the actual prior years' claims experience
26    of the employees of the domestic violence shelter or

 

 

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1    service.
2    Monthly payments by the domestic violence shelter or
3service or its employees for group health insurance shall be
4deposited in the Local Government Health Insurance Reserve
5Fund.
6    (l) A public community college or entity organized pursuant
7to the Public Community College Act may apply to the Director
8initially to have only annuitants not covered prior to July 1,
91992 by the district's health plan provided health coverage
10under this Act on a non-insured basis. The community college
11must execute a 2-year contract to participate in the Local
12Government Health Plan. Any annuitant may enroll in the event
13of a qualifying change in status, special enrollment, special
14circumstance as defined by the Director, or during the annual
15Benefit Choice Period.
16    The Director shall annually determine monthly rates of
17payment subject to the following constraints: for those
18community colleges with annuitants only enrolled, first year
19rates shall be equal to the average cost to cover claims for a
20State member adjusted for demographics, Medicare
21participation, and other factors; and in the second year, a
22further adjustment of rates shall be made to reflect the actual
23first year's claims experience of the covered annuitants.
24    (l-5) The provisions of subsection (l) become inoperative
25on July 1, 1999.
26    (m) The Director shall adopt any rules deemed necessary for

 

 

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1implementation of this amendatory Act of 1989 (Public Act
286-978).
3    (n) Any child advocacy center within the State of Illinois
4may apply to the Director to have its employees, annuitants,
5and their dependents provided group health coverage under this
6Act on a non-insured basis. To participate, a child advocacy
7center must agree to enroll all of its employees and pay the
8entire cost of providing coverage for its employees. The child
9advocacy center shall not be required to enroll those of its
10employees who are covered spouses or dependents under this plan
11or another group policy or plan providing health benefits as
12long as (1) an appropriate official from the child advocacy
13center attests that each employee not enrolled is a covered
14spouse or dependent under this plan or another group policy or
15plan and (2) at least 50% of the employees are enrolled and the
16child advocacy center remits the entire cost of providing
17coverage to those employees. Employees of a participating child
18advocacy center who are not enrolled due to coverage under
19another group health policy or plan may enroll in the event of
20a qualifying change in status, special enrollment, or special
21circumstance as defined by the Director or during the annual
22Benefit Choice Period. A participating child advocacy center
23may also elect to cover its annuitants. Dependent coverage
24shall be offered on an optional basis, with the costs paid by
25the child advocacy center, its employees, or some combination
26of the 2 as determined by the child advocacy center. The child

 

 

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1advocacy center shall be responsible for timely collection and
2transmission of dependent premiums.
3    The Director shall annually determine rates of payment,
4subject to the following constraints:
5        (1) In the first year of coverage, the rates shall be
6    equal to the amount normally charged to State employees for
7    elected optional coverages or for enrolled dependents
8    coverages or other contributory coverages on behalf of its
9    employees, adjusted for differences between State
10    employees and employees of the child advocacy center in
11    age, sex, geographic location, or other relevant
12    demographic variables, plus an amount sufficient to pay for
13    the additional administrative costs of providing coverage
14    to employees of the child advocacy center and their
15    dependents.
16        (2) In subsequent years, a further adjustment shall be
17    made to reflect the actual prior years' claims experience
18    of the employees of the child advocacy center.
19    Monthly payments by the child advocacy center or its
20employees for group health insurance shall be deposited into
21the Local Government Health Insurance Reserve Fund.
22(Source: P.A. 95-331, eff. 8-21-07; 95-632, eff. 9-25-07;
2395-707, eff. 1-11-08; 96-756, eff. 1-1-10; 96-1232, eff.
247-23-10; 96-1519, eff. 2-4-11.)
 
25    Section 99. Effective date. This Act takes effect January

 

 

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11, 2012.".