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

SB0175sam002 97TH GENERAL ASSEMBLY

Sen. Jeffrey M. Schoenberg

Filed: 5/26/2011

 

 


 

 


 
09700SB0175sam002LRB097 04017 JDS 56359 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, retired
14employees, and survivors must pay premiums in order to obtain
15coverage for themselves and any dependents under the program of
16group health benefits provided under this Act. The Director
17shall determine the amount of the premium to be paid by each
18annuitant, retired employee, and survivor, based upon a system
19that takes into account (i) points, which are calculated by
20summing the retiree's age when benefits commenced and his or
21her total years of service, and (ii) estimated annual household
22income, according to the following schedule:
23        (1) For a retired employee, annuitant, or survivor with
24    fewer than 63 points, 100% of the applicable premium.
25        (2) For a retired employee, annuitant, or survivor with
26    63 to 78 points and:

 

 

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

 

 

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1            (D) An estimated annual household income of at
2        least $100,000 but less than $200,000, 70% of the
3        applicable premium.
4            (E) An estimated annual household income of at
5        least $200,000 but less than $250,000, 100% of the
6        applicable premium.
7            (F) An estimated annual household income of
8        $250,000 or more, 100% of the applicable premium.
9        (4) For a retired employee, annuitant, or survivor with
10    86 to 92 points and:
11            (A) An estimated annual household income of less
12        than $30,000, 0% of the applicable premium.
13            (B) An estimated annual household income of at
14        least $30,000 but less than $60,000, 45% of the
15        applicable premium.
16            (C) An estimated annual household income of at
17        least $60,000 but less than $100,000, 55% of the
18        applicable premium.
19            (D) An estimated annual household income of at
20        least $100,000 but less than $200,000, 65% of the
21        applicable premium.
22            (E) An estimated annual household income of at
23        least $200,000 but less than $250,000, 100% of the
24        applicable premium.
25            (F) An estimated annual household income of
26        $250,000 or more, 100% of the applicable premium.

 

 

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1        (5) For a retired employee, annuitant, or survivor with
2    93 or more points and:
3            (A) An estimated annual household income of less
4        than $30,000, 0% of the applicable premium.
5            (B) An estimated annual household income of at
6        least $30,000 but less than $60,000, 35% of the
7        applicable premium.
8            (C) An estimated annual household income of at
9        least $60,000 but less than $100,000, 45% of the
10        applicable premium.
11            (D) An estimated annual household income of at
12        least $100,000 but less than $200,000, 55% of the
13        applicable premium.
14            (E) An estimated annual household income of at
15        least $200,000 but less than $250,000, 100% of the
16        applicable premium.
17            (F) An estimated annual household income of
18        $250,000 or more, 100% of the applicable premium.
19    The Director shall establish a process for determining
20estimated annual household income by administrative rule. This
21income-verification process must use pension income as the
22basis for determining estimated annual household income. The
23Director shall also establish by rule a process for retired
24employees, annuitants, and survivors to appeal determinations
25of estimated annual household income.
26    With respect to any annuitant, retired employee, or

 

 

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1survivor covered by a collective bargaining agreement in effect
2on the effective date of this amendatory Act of the 97th
3General Assembly and until that collective bargaining
4agreement terminates, the obligation of each retired employee,
5annuitant, or survivor to pay the required premium applies only
6to the extent that the obligation is consistent with any
7contractual obligations existing in any collective bargaining
8agreement.
9    Upon the expiration of any collective bargaining agreement
10in effect on the effective date of this amendatory Act of the
1197th General Assembly, the Director may alter the schedule
12above to ensure that 49% of the costs associated with the basic
13program of group health benefits are covered by retired
14employees, annuitants, and survivors.
15    (b) State employees who become eligible for this program on
16or after January 1, 1980 in positions normally requiring actual
17performance of duty not less than 1/2 of a normal work period
18but not equal to that of a normal work period, shall be given
19the option of participating in the available program. If the
20employee elects coverage, the State shall contribute on behalf
21of such employee to the cost of the employee's benefit and any
22applicable dependent supplement, that sum which bears the same
23percentage as that percentage of time the employee regularly
24works when compared to normal work period.
25    (c) The basic non-contributory coverage from the basic
26program of group health benefits shall be continued for each

 

 

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1employee not in pay status or on active service by reason of
2(1) leave of absence due to illness or injury, (2) authorized
3educational leave of absence or sabbatical leave, or (3)
4military leave. This coverage shall continue until expiration
5of authorized leave and return to active service, but not to
6exceed 24 months for leaves under item (1) or (2). This
724-month limitation and the requirement of returning to active
8service shall not apply to persons receiving ordinary or
9accidental disability benefits or retirement benefits through
10the appropriate State retirement system or benefits under the
11Workers' Compensation or Occupational Disease Act.
12    (d) The basic group life insurance coverage shall continue,
13with full State contribution, where such person is (1) absent
14from active service by reason of disability arising from any
15cause other than self-inflicted, (2) on authorized educational
16leave of absence or sabbatical leave, or (3) on military leave.
17    (e) Where the person is in non-pay status for a period in
18excess of 30 days or on leave of absence, other than by reason
19of disability, educational or sabbatical leave, or military
20leave, such person may continue coverage only by making
21personal payment equal to the amount normally contributed by
22the State on such person's behalf. Such payments and coverage
23may be continued: (1) until such time as the person returns to
24a status eligible for coverage at State expense, but not to
25exceed 24 months or (2) until such person's employment or
26annuitant status with the State is terminated (exclusive of any

 

 

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1additional service imposed pursuant to law).
2    (f) The Department shall establish by rule the extent to
3which other employee benefits will continue for persons in
4non-pay status or who are not in active service.
5    (g) The State shall not pay the cost of the basic
6non-contributory group life insurance, program of health
7benefits and other employee benefits for members who are
8survivors as defined by paragraphs (1) and (2) of subsection
9(q) of Section 3 of this Act. The costs of benefits for these
10survivors shall be paid by the survivors or by the University
11of Illinois Cooperative Extension Service, or any combination
12thereof. However, the State shall pay the amount of the
13reduction in the cost of participation, if any, resulting from
14the amendment to subsection (a) made by this amendatory Act of
15the 91st General Assembly.
16    (h) Those persons occupying positions with any department
17as a result of emergency appointments pursuant to Section 8b.8
18of the Personnel Code who are not considered employees under
19this Act shall be given the option of participating in the
20programs of group life insurance, health benefits and other
21employee benefits. Such persons electing coverage may
22participate only by making payment equal to the amount normally
23contributed by the State for similarly situated employees. Such
24amounts shall be determined by the Director. Such payments and
25coverage may be continued until such time as the person becomes
26an employee pursuant to this Act or such person's appointment

 

 

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1is terminated.
2    (i) Any unit of local government within the State of
3Illinois may apply to the Director to have its employees,
4annuitants, and their dependents provided group health
5coverage under this Act on a non-insured basis. To participate,
6a unit of local government must agree to enroll all of its
7employees, who may select coverage under either the State group
8health benefits plan or a health maintenance organization that
9has contracted with the State to be available as a health care
10provider for employees as defined in this Act. A unit of local
11government must remit the entire cost of providing coverage
12under the State group health benefits plan or, for coverage
13under a health maintenance organization, an amount determined
14by the Director based on an analysis of the sex, age,
15geographic location, or other relevant demographic variables
16for its employees, except that the unit of local government
17shall not be required to enroll those of its employees who are
18covered spouses or dependents under this plan or another group
19policy or plan providing health benefits as long as (1) an
20appropriate official from the unit of local government attests
21that each employee not enrolled is a covered spouse or
22dependent under this plan or another group policy or plan, and
23(2) at least 50% of the employees are enrolled and the unit of
24local government remits the entire cost of providing coverage
25to those employees, except that a participating school district
26must have enrolled at least 50% of its full-time employees who

 

 

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1have not waived coverage under the district's group health plan
2by participating in a component of the district's cafeteria
3plan. A participating school district is not required to enroll
4a full-time employee who has waived coverage under the
5district's health plan, provided that an appropriate official
6from the participating school district attests that the
7full-time employee has waived coverage by participating in a
8component of the district's cafeteria plan. For the purposes of
9this subsection, "participating school district" includes a
10unit of local government whose primary purpose is education as
11defined by the Department's rules.
12    Employees of a participating unit of local government who
13are not enrolled due to coverage under another group health
14policy or plan may enroll in the event of a qualifying change
15in status, special enrollment, special circumstance as defined
16by the Director, or during the annual Benefit Choice Period. A
17participating unit of local government may also elect to cover
18its annuitants. Dependent coverage shall be offered on an
19optional basis, with the costs paid by the unit of local
20government, its employees, or some combination of the two as
21determined by the unit of local government. The unit of local
22government shall be responsible for timely collection and
23transmission of dependent premiums.
24    The Director shall annually determine monthly rates of
25payment, subject to the following constraints:
26        (1) In the first year of coverage, the rates shall be

 

 

09700SB0175sam002- 17 -LRB097 04017 JDS 56359 a

1    equal to the amount normally charged to State employees for
2    elected optional coverages or for enrolled dependents
3    coverages or other contributory coverages, or contributed
4    by the State for basic insurance coverages on behalf of its
5    employees, adjusted for differences between State
6    employees and employees of the local government in age,
7    sex, geographic location or other relevant demographic
8    variables, plus an amount sufficient to pay for the
9    additional administrative costs of providing coverage to
10    employees of the unit of local government and their
11    dependents.
12        (2) In subsequent years, a further adjustment shall be
13    made to reflect the actual prior years' claims experience
14    of the employees of the unit of local government.
15    In the case of coverage of local government employees under
16a health maintenance organization, the Director shall annually
17determine for each participating unit of local government the
18maximum monthly amount the unit may contribute toward that
19coverage, based on an analysis of (i) the age, sex, geographic
20location, and other relevant demographic variables of the
21unit's employees and (ii) the cost to cover those employees
22under the State group health benefits plan. The Director may
23similarly determine the maximum monthly amount each unit of
24local government may contribute toward coverage of its
25employees' dependents under a health maintenance organization.
26    Monthly payments by the unit of local government or its

 

 

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1employees for group health benefits plan or health maintenance
2organization coverage shall be deposited in the Local
3Government Health Insurance Reserve Fund.
4    The Local Government Health Insurance Reserve Fund is
5hereby created as a nonappropriated trust fund to be held
6outside the State Treasury, with the State Treasurer as
7custodian. The Local Government Health Insurance Reserve Fund
8shall be a continuing fund not subject to fiscal year
9limitations. The Local Government Health Insurance Reserve
10Fund is not subject to administrative charges or charge-backs,
11including but not limited to those authorized under Section 8h
12of the State Finance Act. All revenues arising from the
13administration of the health benefits program established
14under this Section shall be deposited into the Local Government
15Health Insurance Reserve Fund. Any interest earned on moneys in
16the Local Government Health Insurance Reserve Fund shall be
17deposited into the Fund. All expenditures from this Fund shall
18be used for payments for health care benefits for local
19government and rehabilitation facility employees, annuitants,
20and dependents, and to reimburse the Department or its
21administrative service organization for all expenses incurred
22in the administration of benefits. No other State funds may be
23used for these purposes.
24    A local government employer's participation or desire to
25participate in a program created under this subsection shall
26not limit that employer's duty to bargain with the

 

 

09700SB0175sam002- 19 -LRB097 04017 JDS 56359 a

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

 

 

09700SB0175sam002- 20 -LRB097 04017 JDS 56359 a

1combination of the 2 as determined by the rehabilitation
2facility. The rehabilitation facility shall be responsible for
3timely collection and transmission of dependent premiums.
4    The Director shall annually determine quarterly rates of
5payment, subject to the following constraints:
6        (1) In the first year of coverage, the rates shall be
7    equal to the amount normally charged to State employees for
8    elected optional coverages or for enrolled dependents
9    coverages or other contributory coverages on behalf of its
10    employees, adjusted for differences between State
11    employees and employees of the rehabilitation facility in
12    age, sex, geographic location or other relevant
13    demographic variables, plus an amount sufficient to pay for
14    the additional administrative costs of providing coverage
15    to employees of the rehabilitation facility and their
16    dependents.
17        (2) In subsequent years, a further adjustment shall be
18    made to reflect the actual prior years' claims experience
19    of the employees of the rehabilitation facility.
20    Monthly payments by the rehabilitation facility or its
21employees for group health benefits shall be deposited in the
22Local Government Health Insurance Reserve Fund.
23    (k) Any domestic violence shelter or service within the
24State of Illinois may apply to the Director to have its
25employees, annuitants, and their dependents provided group
26health coverage under this Act on a non-insured basis. To

 

 

09700SB0175sam002- 21 -LRB097 04017 JDS 56359 a

1participate, a domestic violence shelter or service must agree
2to enroll all of its employees and pay the entire cost of
3providing such coverage for its employees. The domestic
4violence shelter shall not be required to enroll those of its
5employees who are covered spouses or dependents under this plan
6or another group policy or plan providing health benefits as
7long as (1) an appropriate official from the domestic violence
8shelter attests that each employee not enrolled is a covered
9spouse or dependent under this plan or another group policy or
10plan and (2) at least 50% of the employees are enrolled and the
11domestic violence shelter remits the entire cost of providing
12coverage to those employees. Employees of a participating
13domestic violence shelter who are not enrolled due to coverage
14under another group health policy or plan may enroll in the
15event of a qualifying change in status, special enrollment, or
16special circumstance as defined by the Director or during the
17annual Benefit Choice Period. A participating domestic
18violence shelter may also elect to cover its annuitants.
19Dependent coverage shall be offered on an optional basis, with
20employees, or some combination of the 2 as determined by the
21domestic violence shelter or service. The domestic violence
22shelter or service shall be responsible for timely collection
23and transmission of dependent premiums.
24    The Director shall annually determine rates of payment,
25subject to the following constraints:
26        (1) In the first year of coverage, the rates shall be

 

 

09700SB0175sam002- 22 -LRB097 04017 JDS 56359 a

1    equal to the amount normally charged to State employees for
2    elected optional coverages or for enrolled dependents
3    coverages or other contributory coverages on behalf of its
4    employees, adjusted for differences between State
5    employees and employees of the domestic violence shelter or
6    service in age, sex, geographic location or other relevant
7    demographic variables, plus an amount sufficient to pay for
8    the additional administrative costs of providing coverage
9    to employees of the domestic violence shelter or service
10    and their dependents.
11        (2) In subsequent years, a further adjustment shall be
12    made to reflect the actual prior years' claims experience
13    of the employees of the domestic violence shelter or
14    service.
15    Monthly payments by the domestic violence shelter or
16service or its employees for group health insurance shall be
17deposited in the Local Government Health Insurance Reserve
18Fund.
19    (l) A public community college or entity organized pursuant
20to the Public Community College Act may apply to the Director
21initially to have only annuitants not covered prior to July 1,
221992 by the district's health plan provided health coverage
23under this Act on a non-insured basis. The community college
24must execute a 2-year contract to participate in the Local
25Government Health Plan. Any annuitant may enroll in the event
26of a qualifying change in status, special enrollment, special

 

 

09700SB0175sam002- 23 -LRB097 04017 JDS 56359 a

1circumstance as defined by the Director, or during the annual
2Benefit Choice Period.
3    The Director shall annually determine monthly rates of
4payment subject to the following constraints: for those
5community colleges with annuitants only enrolled, first year
6rates shall be equal to the average cost to cover claims for a
7State member adjusted for demographics, Medicare
8participation, and other factors; and in the second year, a
9further adjustment of rates shall be made to reflect the actual
10first year's claims experience of the covered annuitants.
11    (l-5) The provisions of subsection (l) become inoperative
12on July 1, 1999.
13    (m) The Director shall adopt any rules deemed necessary for
14implementation of this amendatory Act of 1989 (Public Act
1586-978).
16    (n) Any child advocacy center within the State of Illinois
17may apply to the Director to have its employees, annuitants,
18and their dependents provided group health coverage under this
19Act on a non-insured basis. To participate, a child advocacy
20center must agree to enroll all of its employees and pay the
21entire cost of providing coverage for its employees. The child
22advocacy center shall not be required to enroll those of its
23employees who are covered spouses or dependents under this plan
24or another group policy or plan providing health benefits as
25long as (1) an appropriate official from the child advocacy
26center attests that each employee not enrolled is a covered

 

 

09700SB0175sam002- 24 -LRB097 04017 JDS 56359 a

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

 

 

09700SB0175sam002- 25 -LRB097 04017 JDS 56359 a

1    to employees of the child advocacy center and their
2    dependents.
3        (2) In subsequent years, a further adjustment shall be
4    made to reflect the actual prior years' claims experience
5    of the employees of the child advocacy center.
6    Monthly payments by the child advocacy center or its
7employees for group health insurance shall be deposited into
8the Local Government Health Insurance Reserve Fund.
9(Source: P.A. 95-331, eff. 8-21-07; 95-632, eff. 9-25-07;
1095-707, eff. 1-11-08; 96-756, eff. 1-1-10; 96-1232, eff.
117-23-10; 96-1519, eff. 2-4-11.)
 
12    Section 99. Effective date. This Act takes effect January
131, 2012.".