97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB6177

 

Introduced , by Rep. Karen May

 

SYNOPSIS AS INTRODUCED:
 
5 ILCS 375/3  from Ch. 127, par. 523
5 ILCS 375/6.5
5 ILCS 375/6.9
5 ILCS 375/10  from Ch. 127, par. 530

    Amends the State Employees Group Insurance Act of 1971. Deletes the following defined terms: "New SERS annuitant", "New SURS annuitant", "New TRS State annuitant", "New SERS survivor", "New SURS survivor", and "New TRS State survivor". Deletes provisions that require the State to contribute toward the cost of coverage under the basic program of group health benefits an amount that is equal to 5% of that cost for each full year of creditable service, up to a maximum of 100% for an annuitant with 20 or more years of creditable service, for those classes of persons. Changes the manner in which the cost of health benefits for community college benefit recipients and TRS benefit recipients is to be paid. Provides that, beginning on the effective date of the amendatory Act, the Director of Central Management Services shall, on an annual basis, determine the amount that each annuitant, survivor, and retired employee shall contribute toward the basic program of group health benefits on behalf of retired employees, annuitants, and survivors. Requires the Director, when determining that amount, to take into account benefit points and annual pension income. Sets the amount of the required State contribution toward the basic program of group health benefits. Effective July 1, 2012.


LRB097 21656 JDS 69976 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB6177LRB097 21656 JDS 69976 b

1    AN ACT concerning government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Employees Group Insurance Act of 1971
5is amended by changing Sections 3, 6.5, 6.9, and 10 as follows:
 
6    (5 ILCS 375/3)  (from Ch. 127, par. 523)
7    Sec. 3. Definitions. Unless the context otherwise
8requires, the following words and phrases as used in this Act
9shall have the following meanings. The Department may define
10these and other words and phrases separately for the purpose of
11implementing specific programs providing benefits under this
12Act.
13    (a) "Administrative service organization" means any
14person, firm or corporation experienced in the handling of
15claims which is fully qualified, financially sound and capable
16of meeting the service requirements of a contract of
17administration executed with the Department.
18    (b) "Annuitant" means (1) an employee who retires, or has
19retired, on or after January 1, 1966 on an immediate annuity
20under the provisions of Articles 2, 14 (including an employee
21who has elected to receive an alternative retirement
22cancellation payment under Section 14-108.5 of the Illinois
23Pension Code in lieu of an annuity), 15 (including an employee

 

 

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1who has retired under the optional retirement program
2established under Section 15-158.2), paragraphs (2), (3), or
3(5) of Section 16-106, or Article 18 of the Illinois Pension
4Code; (2) any person who was receiving group insurance coverage
5under this Act as of March 31, 1978 by reason of his status as
6an annuitant, even though the annuity in relation to which such
7coverage was provided is a proportional annuity based on less
8than the minimum period of service required for a retirement
9annuity in the system involved; (3) any person not otherwise
10covered by this Act who has retired as a participating member
11under Article 2 of the Illinois Pension Code but is ineligible
12for the retirement annuity under Section 2-119 of the Illinois
13Pension Code; (4) the spouse of any person who is receiving a
14retirement annuity under Article 18 of the Illinois Pension
15Code and who is covered under a group health insurance program
16sponsored by a governmental employer other than the State of
17Illinois and who has irrevocably elected to waive his or her
18coverage under this Act and to have his or her spouse
19considered as the "annuitant" under this Act and not as a
20"dependent"; or (5) an employee who retires, or has retired,
21from a qualified position, as determined according to rules
22promulgated by the Director, under a qualified local
23government, a qualified rehabilitation facility, a qualified
24domestic violence shelter or service, or a qualified child
25advocacy center. (For definition of "retired employee", see (p)
26post).

 

 

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1    (b-5) (Blank). "New SERS annuitant" means a person who, on
2or after January 1, 1998, becomes an annuitant, as defined in
3subsection (b), by virtue of beginning to receive a retirement
4annuity under Article 14 of the Illinois Pension Code
5(including an employee who has elected to receive an
6alternative retirement cancellation payment under Section
714-108.5 of that Code in lieu of an annuity), and is eligible
8to participate in the basic program of group health benefits
9provided for annuitants under this Act.
10    (b-6) (Blank). "New SURS annuitant" means a person who (1)
11on or after January 1, 1998, becomes an annuitant, as defined
12in subsection (b), by virtue of beginning to receive a
13retirement annuity under Article 15 of the Illinois Pension
14Code, (2) has not made the election authorized under Section
1515-135.1 of the Illinois Pension Code, and (3) is eligible to
16participate in the basic program of group health benefits
17provided for annuitants under this Act.
18    (b-7) (Blank). "New TRS State annuitant" means a person
19who, on or after July 1, 1998, becomes an annuitant, as defined
20in subsection (b), by virtue of beginning to receive a
21retirement annuity under Article 16 of the Illinois Pension
22Code based on service as a teacher as defined in paragraph (2),
23(3), or (5) of Section 16-106 of that Code, and is eligible to
24participate in the basic program of group health benefits
25provided for annuitants under this Act.
26    (c) "Carrier" means (1) an insurance company, a corporation

 

 

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1organized under the Limited Health Service Organization Act or
2the Voluntary Health Services Plan Act, a partnership, or other
3nongovernmental organization, which is authorized to do group
4life or group health insurance business in Illinois, or (2) the
5State of Illinois as a self-insurer.
6    (d) "Compensation" means salary or wages payable on a
7regular payroll by the State Treasurer on a warrant of the
8State Comptroller out of any State, trust or federal fund, or
9by the Governor of the State through a disbursing officer of
10the State out of a trust or out of federal funds, or by any
11Department out of State, trust, federal or other funds held by
12the State Treasurer or the Department, to any person for
13personal services currently performed, and ordinary or
14accidental disability benefits under Articles 2, 14, 15
15(including ordinary or accidental disability benefits under
16the optional retirement program established under Section
1715-158.2), paragraphs (2), (3), or (5) of Section 16-106, or
18Article 18 of the Illinois Pension Code, for disability
19incurred after January 1, 1966, or benefits payable under the
20Workers' Compensation or Occupational Diseases Act or benefits
21payable under a sick pay plan established in accordance with
22Section 36 of the State Finance Act. "Compensation" also means
23salary or wages paid to an employee of any qualified local
24government, qualified rehabilitation facility, qualified
25domestic violence shelter or service, or qualified child
26advocacy center.

 

 

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1    (e) "Commission" means the State Employees Group Insurance
2Advisory Commission authorized by this Act. Commencing July 1,
31984, "Commission" as used in this Act means the Commission on
4Government Forecasting and Accountability as established by
5the Legislative Commission Reorganization Act of 1984.
6    (f) "Contributory", when referred to as contributory
7coverage, shall mean optional coverages or benefits elected by
8the member toward the cost of which such member makes
9contribution, or which are funded in whole or in part through
10the acceptance of a reduction in earnings or the foregoing of
11an increase in earnings by an employee, as distinguished from
12noncontributory coverage or benefits which are paid entirely by
13the State of Illinois without reduction of the member's salary.
14    (g) "Department" means any department, institution, board,
15commission, officer, court or any agency of the State
16government receiving appropriations and having power to
17certify payrolls to the Comptroller authorizing payments of
18salary and wages against such appropriations as are made by the
19General Assembly from any State fund, or against trust funds
20held by the State Treasurer and includes boards of trustees of
21the retirement systems created by Articles 2, 14, 15, 16 and 18
22of the Illinois Pension Code. "Department" also includes the
23Illinois Comprehensive Health Insurance Board, the Board of
24Examiners established under the Illinois Public Accounting
25Act, and the Illinois Finance Authority.
26    (h) "Dependent", when the term is used in the context of

 

 

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1the health and life plan, means a member's spouse and any child
2(1) from birth to age 26 including an adopted child, a child
3who lives with the member from the time of the filing of a
4petition for adoption until entry of an order of adoption, a
5stepchild or adjudicated child, or a child who lives with the
6member if such member is a court appointed guardian of the
7child or (2) age 19 or over who is mentally or physically
8disabled from a cause originating prior to the age of 19 (age
926 if enrolled as an adult child dependent). For the health
10plan only, the term "dependent" also includes (1) any person
11enrolled prior to the effective date of this Section who is
12dependent upon the member to the extent that the member may
13claim such person as a dependent for income tax deduction
14purposes and (2) any person who has received after June 30,
152000 an organ transplant and who is financially dependent upon
16the member and eligible to be claimed as a dependent for income
17tax purposes. A member requesting to cover any dependent must
18provide documentation as requested by the Department of Central
19Management Services and file with the Department any and all
20forms required by the Department.
21    (i) "Director" means the Director of the Illinois
22Department of Central Management Services or of any successor
23agency designated to administer this Act.
24    (j) "Eligibility period" means the period of time a member
25has to elect enrollment in programs or to select benefits
26without regard to age, sex or health.

 

 

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1    (k) "Employee" means and includes each officer or employee
2in the service of a department who (1) receives his
3compensation for service rendered to the department on a
4warrant issued pursuant to a payroll certified by a department
5or on a warrant or check issued and drawn by a department upon
6a trust, federal or other fund or on a warrant issued pursuant
7to a payroll certified by an elected or duly appointed officer
8of the State or who receives payment of the performance of
9personal services on a warrant issued pursuant to a payroll
10certified by a Department and drawn by the Comptroller upon the
11State Treasurer against appropriations made by the General
12Assembly from any fund or against trust funds held by the State
13Treasurer, and (2) is employed full-time or part-time in a
14position normally requiring actual performance of duty during
15not less than 1/2 of a normal work period, as established by
16the Director in cooperation with each department, except that
17persons elected by popular vote will be considered employees
18during the entire term for which they are elected regardless of
19hours devoted to the service of the State, and (3) except that
20"employee" does not include any person who is not eligible by
21reason of such person's employment to participate in one of the
22State retirement systems under Articles 2, 14, 15 (either the
23regular Article 15 system or the optional retirement program
24established under Section 15-158.2) or 18, or under paragraph
25(2), (3), or (5) of Section 16-106, of the Illinois Pension
26Code, but such term does include persons who are employed

 

 

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1during the 6 month qualifying period under Article 14 of the
2Illinois Pension Code. Such term also includes any person who
3(1) after January 1, 1966, is receiving ordinary or accidental
4disability benefits under Articles 2, 14, 15 (including
5ordinary or accidental disability benefits under the optional
6retirement program established under Section 15-158.2),
7paragraphs (2), (3), or (5) of Section 16-106, or Article 18 of
8the Illinois Pension Code, for disability incurred after
9January 1, 1966, (2) receives total permanent or total
10temporary disability under the Workers' Compensation Act or
11Occupational Disease Act as a result of injuries sustained or
12illness contracted in the course of employment with the State
13of Illinois, or (3) is not otherwise covered under this Act and
14has retired as a participating member under Article 2 of the
15Illinois Pension Code but is ineligible for the retirement
16annuity under Section 2-119 of the Illinois Pension Code.
17However, a person who satisfies the criteria of the foregoing
18definition of "employee" except that such person is made
19ineligible to participate in the State Universities Retirement
20System by clause (4) of subsection (a) of Section 15-107 of the
21Illinois Pension Code is also an "employee" for the purposes of
22this Act. "Employee" also includes any person receiving or
23eligible for benefits under a sick pay plan established in
24accordance with Section 36 of the State Finance Act. "Employee"
25also includes (i) each officer or employee in the service of a
26qualified local government, including persons appointed as

 

 

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1trustees of sanitary districts regardless of hours devoted to
2the service of the sanitary district, (ii) each employee in the
3service of a qualified rehabilitation facility, (iii) each
4full-time employee in the service of a qualified domestic
5violence shelter or service, and (iv) each full-time employee
6in the service of a qualified child advocacy center, as
7determined according to rules promulgated by the Director.
8    (l) "Member" means an employee, annuitant, retired
9employee or survivor. In the case of an annuitant or retired
10employee who first becomes an annuitant or retired employee on
11or after the effective date of this amendatory Act of the 97th
12General Assembly, the individual must meet the minimum vesting
13requirements of the applicable retirement system in order to be
14eligible for group insurance benefits under that system. In the
15case of a survivor who first becomes a survivor on or after the
16effective date of this amendatory Act of the 97th General
17Assembly, the deceased employee, annuitant, or retired
18employee upon whom the annuity is based must have been eligible
19to participate in the group insurance system under the
20applicable retirement system in order for the survivor to be
21eligible for group insurance benefits under that system.
22    (m) "Optional coverages or benefits" means those coverages
23or benefits available to the member on his or her voluntary
24election, and at his or her own expense.
25    (n) "Program" means the group life insurance, health
26benefits and other employee benefits designed and contracted

 

 

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1for by the Director under this Act.
2    (o) "Health plan" means a health benefits program offered
3by the State of Illinois for persons eligible for the plan.
4    (p) "Retired employee" means any person who would be an
5annuitant as that term is defined herein but for the fact that
6such person retired prior to January 1, 1966. Such term also
7includes any person formerly employed by the University of
8Illinois in the Cooperative Extension Service who would be an
9annuitant but for the fact that such person was made ineligible
10to participate in the State Universities Retirement System by
11clause (4) of subsection (a) of Section 15-107 of the Illinois
12Pension Code.
13    (q) "Survivor" means a person receiving an annuity as a
14survivor of an employee or of an annuitant. "Survivor" also
15includes: (1) the surviving dependent of a person who satisfies
16the definition of "employee" except that such person is made
17ineligible to participate in the State Universities Retirement
18System by clause (4) of subsection (a) of Section 15-107 of the
19Illinois Pension Code; (2) the surviving dependent of any
20person formerly employed by the University of Illinois in the
21Cooperative Extension Service who would be an annuitant except
22for the fact that such person was made ineligible to
23participate in the State Universities Retirement System by
24clause (4) of subsection (a) of Section 15-107 of the Illinois
25Pension Code; and (3) the surviving dependent of a person who
26was an annuitant under this Act by virtue of receiving an

 

 

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1alternative retirement cancellation payment under Section
214-108.5 of the Illinois Pension Code.
3    (q-2) "SERS" means the State Employees' Retirement System
4of Illinois, created under Article 14 of the Illinois Pension
5Code.
6    (q-3) "SURS" means the State Universities Retirement
7System, created under Article 15 of the Illinois Pension Code.
8    (q-4) "TRS" means the Teachers' Retirement System of the
9State of Illinois, created under Article 16 of the Illinois
10Pension Code.
11    (q-5) (Blank). "New SERS survivor" means a survivor, as
12defined in subsection (q), whose annuity is paid under Article
1314 of the Illinois Pension Code and is based on the death of
14(i) an employee whose death occurs on or after January 1, 1998,
15or (ii) a new SERS annuitant as defined in subsection (b-5).
16"New SERS survivor" includes the surviving dependent of a
17person who was an annuitant under this Act by virtue of
18receiving an alternative retirement cancellation payment under
19Section 14-108.5 of the Illinois Pension Code.
20    (q-6) (Blank). "New SURS survivor" means a survivor, as
21defined in subsection (q), whose annuity is paid under Article
2215 of the Illinois Pension Code and is based on the death of
23(i) an employee whose death occurs on or after January 1, 1998,
24or (ii) a new SURS annuitant as defined in subsection (b-6).
25    (q-7) (Blank). "New TRS State survivor" means a survivor,
26as defined in subsection (q), whose annuity is paid under

 

 

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1Article 16 of the Illinois Pension Code and is based on the
2death of (i) an employee who is a teacher as defined in
3paragraph (2), (3), or (5) of Section 16-106 of that Code and
4whose death occurs on or after July 1, 1998, or (ii) a new TRS
5State annuitant as defined in subsection (b-7).
6    (r) "Medical services" means the services provided within
7the scope of their licenses by practitioners in all categories
8licensed under the Medical Practice Act of 1987.
9    (s) "Unit of local government" means any county,
10municipality, township, school district (including a
11combination of school districts under the Intergovernmental
12Cooperation Act), special district or other unit, designated as
13a unit of local government by law, which exercises limited
14governmental powers or powers in respect to limited
15governmental subjects, any not-for-profit association with a
16membership that primarily includes townships and township
17officials, that has duties that include provision of research
18service, dissemination of information, and other acts for the
19purpose of improving township government, and that is funded
20wholly or partly in accordance with Section 85-15 of the
21Township Code; any not-for-profit corporation or association,
22with a membership consisting primarily of municipalities, that
23operates its own utility system, and provides research,
24training, dissemination of information, or other acts to
25promote cooperation between and among municipalities that
26provide utility services and for the advancement of the goals

 

 

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1and purposes of its membership; the Southern Illinois
2Collegiate Common Market, which is a consortium of higher
3education institutions in Southern Illinois; the Illinois
4Association of Park Districts; and any hospital provider that
5is owned by a county that has 100 or fewer hospital beds and
6has not already joined the program. "Qualified local
7government" means a unit of local government approved by the
8Director and participating in a program created under
9subsection (i) of Section 10 of this Act.
10    (t) "Qualified rehabilitation facility" means any
11not-for-profit organization that is accredited by the
12Commission on Accreditation of Rehabilitation Facilities or
13certified by the Department of Human Services (as successor to
14the Department of Mental Health and Developmental
15Disabilities) to provide services to persons with disabilities
16and which receives funds from the State of Illinois for
17providing those services, approved by the Director and
18participating in a program created under subsection (j) of
19Section 10 of this Act.
20    (u) "Qualified domestic violence shelter or service" means
21any Illinois domestic violence shelter or service and its
22administrative offices funded by the Department of Human
23Services (as successor to the Illinois Department of Public
24Aid), approved by the Director and participating in a program
25created under subsection (k) of Section 10.
26    (v) "TRS benefit recipient" means a person who:

 

 

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1        (1) is not a "member" as defined in this Section; and
2        (2) is receiving a monthly benefit or retirement
3    annuity under Article 16 of the Illinois Pension Code; and
4        (3) either (i) has at least 8 years of creditable
5    service under Article 16 of the Illinois Pension Code, or
6    (ii) was enrolled in the health insurance program offered
7    under that Article on January 1, 1996, or (iii) is the
8    survivor of a benefit recipient who had at least 8 years of
9    creditable service under Article 16 of the Illinois Pension
10    Code or was enrolled in the health insurance program
11    offered under that Article on the effective date of this
12    amendatory Act of 1995, or (iv) is a recipient or survivor
13    of a recipient of a disability benefit under Article 16 of
14    the Illinois Pension Code.
15    (w) "TRS dependent beneficiary" means a person who:
16        (1) is not a "member" or "dependent" as defined in this
17    Section; and
18        (2) is a TRS benefit recipient's: (A) spouse, (B)
19    dependent parent who is receiving at least half of his or
20    her support from the TRS benefit recipient, or (C) natural,
21    step, adjudicated, or adopted child who is (i) under age
22    26, (ii) was, on January 1, 1996, participating as a
23    dependent beneficiary in the health insurance program
24    offered under Article 16 of the Illinois Pension Code, or
25    (iii) age 19 or over who is mentally or physically disabled
26    from a cause originating prior to the age of 19 (age 26 if

 

 

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1    enrolled as an adult child).
2    "TRS dependent beneficiary" does not include, as indicated
3under paragraph (2) of this subsection (w), a dependent of the
4survivor of a TRS benefit recipient who first becomes a
5dependent of a survivor of a TRS benefit recipient on or after
6the effective date of this amendatory Act of the 97th General
7Assembly unless that dependent would have been eligible for
8coverage as a dependent of the deceased TRS benefit recipient
9upon whom the survivor benefit is based.
10    (x) "Military leave" refers to individuals in basic
11training for reserves, special/advanced training, annual
12training, emergency call up, activation by the President of the
13United States, or any other training or duty in service to the
14United States Armed Forces.
15    (y) (Blank).
16    (z) "Community college benefit recipient" means a person
17who:
18        (1) is not a "member" as defined in this Section; and
19        (2) is receiving a monthly survivor's annuity or
20    retirement annuity under Article 15 of the Illinois Pension
21    Code; and
22        (3) either (i) was a full-time employee of a community
23    college district or an association of community college
24    boards created under the Public Community College Act
25    (other than an employee whose last employer under Article
26    15 of the Illinois Pension Code was a community college

 

 

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1    district subject to Article VII of the Public Community
2    College Act) and was eligible to participate in a group
3    health benefit plan as an employee during the time of
4    employment with a community college district (other than a
5    community college district subject to Article VII of the
6    Public Community College Act) or an association of
7    community college boards, or (ii) is the survivor of a
8    person described in item (i).
9    (aa) "Community college dependent beneficiary" means a
10person who:
11        (1) is not a "member" or "dependent" as defined in this
12    Section; and
13        (2) is a community college benefit recipient's: (A)
14    spouse, (B) dependent parent who is receiving at least half
15    of his or her support from the community college benefit
16    recipient, or (C) natural, step, adjudicated, or adopted
17    child who is (i) under age 26, or (ii) age 19 or over and
18    mentally or physically disabled from a cause originating
19    prior to the age of 19 (age 26 if enrolled as an adult
20    child).
21    "Community college dependent beneficiary" does not
22include, as indicated under paragraph (2) of this subsection
23(aa), a dependent of the survivor of a community college
24benefit recipient who first becomes a dependent of a survivor
25of a community college benefit recipient on or after the
26effective date of this amendatory Act of the 97th General

 

 

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1Assembly unless that dependent would have been eligible for
2coverage as a dependent of the deceased community college
3benefit recipient upon whom the survivor annuity is based.
4    (bb) "Qualified child advocacy center" means any Illinois
5child advocacy center and its administrative offices funded by
6the Department of Children and Family Services, as defined by
7the Children's Advocacy Center Act (55 ILCS 80/), approved by
8the Director and participating in a program created under
9subsection (n) of Section 10.
10(Source: P.A. 96-756, eff. 1-1-10; 96-1519, eff. 2-4-11;
1197-668, eff. 1-13-12.)
 
12    (5 ILCS 375/6.5)
13    Sec. 6.5. Health benefits for TRS benefit recipients and
14TRS dependent beneficiaries.
15    (a) Purpose. It is the purpose of this amendatory Act of
161995 to transfer the administration of the program of health
17benefits established for benefit recipients and their
18dependent beneficiaries under Article 16 of the Illinois
19Pension Code to the Department of Central Management Services.
20    (b) Transition provisions. The Board of Trustees of the
21Teachers' Retirement System shall continue to administer the
22health benefit program established under Article 16 of the
23Illinois Pension Code through December 31, 1995. Beginning
24January 1, 1996, the Department of Central Management Services
25shall be responsible for administering a program of health

 

 

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1benefits for TRS benefit recipients and TRS dependent
2beneficiaries under this Section. The Department of Central
3Management Services and the Teachers' Retirement System shall
4cooperate in this endeavor and shall coordinate their
5activities so as to ensure a smooth transition and
6uninterrupted health benefit coverage.
7    (c) Eligibility. All persons who were enrolled in the
8Article 16 program at the time of the transfer shall be
9eligible to participate in the program established under this
10Section without any interruption or delay in coverage or
11limitation as to pre-existing medical conditions. Eligibility
12to participate shall be determined by the Teachers' Retirement
13System. Eligibility information shall be communicated to the
14Department of Central Management Services in a format
15acceptable to the Department.
16    A TRS dependent beneficiary who is a child age 19 or over
17and mentally or physically disabled does not become ineligible
18to participate by reason of (i) becoming ineligible to be
19claimed as a dependent for Illinois or federal income tax
20purposes or (ii) receiving earned income, so long as those
21earnings are insufficient for the child to be fully
22self-sufficient.
23    (d) Coverage. The level of health benefits provided under
24this Section shall be similar to the level of benefits provided
25by the program previously established under Article 16 of the
26Illinois Pension Code.

 

 

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1    Group life insurance benefits are not included in the
2benefits to be provided to TRS benefit recipients and TRS
3dependent beneficiaries under this Act.
4    The program of health benefits under this Section may
5include any or all of the benefit limitations, including but
6not limited to a reduction in benefits based on eligibility for
7federal medicare benefits, that are provided under subsection
8(a) of Section 6 of this Act for other health benefit programs
9under this Act.
10    (e) Insurance rates and premiums. The Director shall
11determine the insurance rates and premiums for TRS benefit
12recipients and TRS dependent beneficiaries, and shall present
13to the Teachers' Retirement System of the State of Illinois, by
14April 15 of each calendar year, the rate-setting methodology
15(including but not limited to utilization levels and costs)
16used to determine the amount of the health care premiums.
17        For Fiscal Year 1996, the premium shall be equal to the
18    premium actually charged in Fiscal Year 1995; in subsequent
19    years, the premium shall never be lower than the premium
20    charged in Fiscal Year 1995.
21        For Fiscal Year 2003, the premium shall not exceed 110%
22    of the premium actually charged in Fiscal Year 2002.
23        For Fiscal Year 2004, the premium shall not exceed 112%
24    of the premium actually charged in Fiscal Year 2003.
25        For Fiscal Year 2005, the premium shall not exceed a
26    weighted average of 106.6% of the premium actually charged

 

 

HB6177- 20 -LRB097 21656 JDS 69976 b

1    in Fiscal Year 2004.
2        For Fiscal Year 2006, the premium shall not exceed a
3    weighted average of 109.1% of the premium actually charged
4    in Fiscal Year 2005.
5        For Fiscal Year 2007, the premium shall not exceed a
6    weighted average of 103.9% of the premium actually charged
7    in Fiscal Year 2006.
8        For Fiscal Year 2008 through Fiscal Year 2013 and
9    thereafter, the premium in each fiscal year shall not
10    exceed 105% of the premium actually charged in the previous
11    fiscal year.
12    Rates and premiums shall may be based in part on age, and
13eligibility for federal medicare coverage, years of service,
14pension income, and the type of insurance program selected.
15However, the cost of participation for a TRS dependent
16beneficiary who is an unmarried child age 19 or over and
17mentally or physically disabled shall not exceed the cost for a
18TRS dependent beneficiary who is an unmarried child under age
1919 and participates in the same major medical or managed care
20program.
21    The cost of health benefits under the program shall be paid
22as follows:
23        (1) For each Medicare-covered a TRS benefit recipient
24    selecting a managed care program, other than a
25    Medicare-covered TRS benefit recipient who first becomes a
26    teacher, as defined under paragraphs (1), (4), and (6)

 

 

HB6177- 21 -LRB097 21656 JDS 69976 b

1    through (10) of Section 16-106 of the Illinois Pension
2    Code, on or after the effective date of this amendatory Act
3    of the 97th General Assembly, up to 60% 75% of the total
4    insurance rate shall be paid from the Teacher Health
5    Insurance Security Fund. Effective with Fiscal Year 2007
6    and thereafter, for a TRS benefit recipient selecting a
7    managed care program, 75% of the total insurance rate shall
8    be paid from the Teacher Health Insurance Security Fund.
9        (2) For each non-Medicare-covered a TRS benefit
10    recipient selecting the major medical coverage program,
11    other than a non-Medicare-covered TRS benefit recipient
12    who either first becomes a TRS benefit recipient on or
13    after the effective date of this amendatory Act of the 97th
14    General Assembly or first becomes a teacher, as defined
15    under paragraphs (1), (4), and (6) through (10) of Section
16    16-106 of the Illinois Pension Code, on or after the
17    effective date of this amendatory Act of the 97th General
18    Assembly, up to 60% 50% of the total insurance rate shall
19    be paid from the Teacher Health Insurance Security Fund if
20    a managed care program is accessible, as determined by the
21    Teachers' Retirement System. Effective with Fiscal Year
22    2007 and thereafter, for a TRS benefit recipient selecting
23    the major medical coverage program, 50% of the total
24    insurance rate shall be paid from the Teacher Health
25    Insurance Security Fund if a managed care program is
26    accessible, as determined by the Department of Central

 

 

HB6177- 22 -LRB097 21656 JDS 69976 b

1    Management Services.
2        (3) For each non-Medicare-covered a TRS benefit
3    recipient who first becomes a TRS benefit recipient on or
4    after the effective date of this amendatory Act of the 97th
5    General Assembly, other than a non-Medicare-covered TRS
6    benefit recipient who first becomes a teacher, as defined
7    under paragraphs (1), (4), and (6) through (10) of Section
8    16-106 of the Illinois Pension Code, on or after the
9    effective date of this amendatory Act of the 97th General
10    Assembly selecting the major medical coverage program, up
11    to 60% 75% of the total insurance rate that would be paid
12    on behalf of that TRS benefit recipient if he or she were
13    eligible for Medicare shall be paid from the Teacher Health
14    Insurance Security Fund if a managed care program is not
15    accessible, as determined by the Teachers' Retirement
16    System. Effective with Fiscal Year 2007 and thereafter, for
17    a TRS benefit recipient selecting the major medical
18    coverage program, 75% of the total insurance rate shall be
19    paid from the Teacher Health Insurance Security Fund if a
20    managed care program is not accessible, as determined by
21    the Department of Central Management Services.
22        (3.1) For each a TRS benefit recipient who first
23    becomes a teacher, as defined under paragraphs (1), (4),
24    and (6) through (10) of Section 16-106 of the Illinois
25    Pension Code, on or after the effective date of this
26    amendatory Act of the 97th General Assembly, no portion of

 

 

HB6177- 23 -LRB097 21656 JDS 69976 b

1    the total insurance rate shall be paid from the Teacher
2    Health Insurance Security Fund. dependent beneficiary who
3    is Medicare primary and enrolled in a managed care plan, or
4    the major medical coverage program if a managed care plan
5    is not available, 25% of the total insurance rate shall be
6    paid from the Teacher Health Security Fund as determined by
7    the Department of Central Management Services. For the
8    purpose of this item (3.1), the term "TRS dependent
9    beneficiary who is Medicare primary" means a TRS dependent
10    beneficiary who is participating in Medicare Parts A and B.
11        (4) The Except as otherwise provided in item (3.1), the
12    balance of the rate of insurance, including the entire
13    premium of any coverage for TRS dependent beneficiaries
14    that has been elected, shall be paid by deductions
15    authorized by the TRS benefit recipient to be withheld from
16    his or her monthly annuity or benefit payment from the
17    Teachers' Retirement System; except that (i) if the balance
18    of the cost of coverage exceeds the amount of the monthly
19    annuity or benefit payment, the difference shall be paid
20    directly to the Teachers' Retirement System by the TRS
21    benefit recipient, and (ii) all or part of the balance of
22    the cost of coverage may, at the school board's option, be
23    paid to the Teachers' Retirement System by the school board
24    of the school district from which the TRS benefit recipient
25    retired, in accordance with Section 10-22.3b of the School
26    Code. The Teachers' Retirement System shall promptly

 

 

HB6177- 24 -LRB097 21656 JDS 69976 b

1    deposit all moneys withheld by or paid to it under this
2    subdivision (e)(4) into the Teacher Health Insurance
3    Security Fund. These moneys shall not be considered assets
4    of the Retirement System.
5    (f) Financing. Beginning July 1, 1995, all revenues arising
6from the administration of the health benefit programs
7established under Article 16 of the Illinois Pension Code or
8this Section shall be deposited into the Teacher Health
9Insurance Security Fund, which is hereby created as a
10nonappropriated trust fund to be held outside the State
11Treasury, with the State Treasurer as custodian. Any interest
12earned on moneys in the Teacher Health Insurance Security Fund
13shall be deposited into the Fund.
14    Moneys in the Teacher Health Insurance Security Fund shall
15be used only to pay the costs of the health benefit program
16established under this Section, including associated
17administrative costs, and the costs associated with the health
18benefit program established under Article 16 of the Illinois
19Pension Code, as authorized in this Section. Beginning July 1,
201995, the Department of Central Management Services may make
21expenditures from the Teacher Health Insurance Security Fund
22for those costs.
23    After other funds authorized for the payment of the costs
24of the health benefit program established under Article 16 of
25the Illinois Pension Code are exhausted and until January 1,
261996 (or such later date as may be agreed upon by the Director

 

 

HB6177- 25 -LRB097 21656 JDS 69976 b

1of Central Management Services and the Secretary of the
2Teachers' Retirement System), the Secretary of the Teachers'
3Retirement System may make expenditures from the Teacher Health
4Insurance Security Fund as necessary to pay up to 75% of the
5cost of providing health coverage to eligible benefit
6recipients (as defined in Sections 16-153.1 and 16-153.3 of the
7Illinois Pension Code) who are enrolled in the Article 16
8health benefit program and to facilitate the transfer of
9administration of the health benefit program to the Department
10of Central Management Services.
11    The Department of Healthcare and Family Services, or any
12successor agency designated to procure healthcare contracts
13pursuant to this Act, is authorized to establish funds,
14separate accounts provided by any bank or banks as defined by
15the Illinois Banking Act, or separate accounts provided by any
16savings and loan association or associations as defined by the
17Illinois Savings and Loan Act of 1985 to be held by the
18Director, outside the State treasury, for the purpose of
19receiving the transfer of moneys from the Teacher Health
20Insurance Security Fund. The Department may promulgate rules
21further defining the methodology for the transfers. Any
22interest earned by moneys in the funds or accounts shall inure
23to the Teacher Health Insurance Security Fund. The transferred
24moneys, and interest accrued thereon, shall be used exclusively
25for transfers to administrative service organizations or their
26financial institutions for payments of claims to claimants and

 

 

HB6177- 26 -LRB097 21656 JDS 69976 b

1providers under the self-insurance health plan. The
2transferred moneys, and interest accrued thereon, shall not be
3used for any other purpose including, but not limited to,
4reimbursement of administration fees due the administrative
5service organization pursuant to its contract or contracts with
6the Department.
7    (g) Contract for benefits. The Director shall by contract,
8self-insurance, or otherwise make available the program of
9health benefits for TRS benefit recipients and their TRS
10dependent beneficiaries that is provided for in this Section.
11The contract or other arrangement for the provision of these
12health benefits shall be on terms deemed by the Director to be
13in the best interest of the State of Illinois and the TRS
14benefit recipients based on, but not limited to, such criteria
15as administrative cost, service capabilities of the carrier or
16other contractor, and the costs of the benefits.
17    (g-5) Committee. A Teacher Retirement Insurance Program
18Committee shall be established, to consist of 10 persons
19appointed by the Governor.
20    The Committee shall convene at least 4 times each year, and
21shall consider and make recommendations on issues affecting the
22program of health benefits provided under this Section.
23Recommendations of the Committee shall be based on a consensus
24of the members of the Committee.
25    If the Teacher Health Insurance Security Fund experiences a
26deficit balance based upon the contribution and subsidy rates

 

 

HB6177- 27 -LRB097 21656 JDS 69976 b

1established in this Section and Section 6.6 for Fiscal Year
22008 or thereafter, the Committee shall make recommendations
3for adjustments to the funding sources established under these
4Sections.
5    In addition, the Committee shall identify proposed
6solutions to the funding shortfalls that are affecting the
7Teacher Health Insurance Security Fund, and it shall report
8those solutions to the Governor and the General Assembly within
96 months after August 15, 2011 (the effective date of Public
10Act 97-386) this amendatory Act of the 97th General Assembly.
11    (h) Continuation of program. It is the intention of the
12General Assembly that the program of health benefits provided
13under this Section be maintained on an ongoing, affordable
14basis.
15    The program of health benefits provided under this Section
16may be amended by the State and is not intended to be a pension
17or retirement benefit subject to protection under Article XIII,
18Section 5 of the Illinois Constitution.
19    (i) Repeal. (Blank).
20(Source: P.A. 96-1519, eff. 2-4-11; 97-386, eff. 8-15-11;
21revised 9-2-11.)
 
22    (5 ILCS 375/6.9)
23    Sec. 6.9. Health benefits for community college benefit
24recipients and community college dependent beneficiaries.
25    (a) Purpose. It is the purpose of this amendatory Act of

 

 

HB6177- 28 -LRB097 21656 JDS 69976 b

11997 to establish a uniform program of health benefits for
2community college benefit recipients and their dependent
3beneficiaries under the administration of the Department of
4Central Management Services.
5    (b) Creation of program. Beginning July 1, 1999, the
6Department of Central Management Services shall be responsible
7for administering a program of health benefits for community
8college benefit recipients and community college dependent
9beneficiaries under this Section. The State Universities
10Retirement System and the boards of trustees of the various
11community college districts shall cooperate with the
12Department in this endeavor.
13    (c) Eligibility. All community college benefit recipients
14and community college dependent beneficiaries shall be
15eligible to participate in the program established under this
16Section, without any interruption or delay in coverage or
17limitation as to pre-existing medical conditions. Eligibility
18to participate shall be determined by the State Universities
19Retirement System. Eligibility information shall be
20communicated to the Department of Central Management Services
21in a format acceptable to the Department.
22    (d) Coverage. The health benefit coverage provided under
23this Section shall be a program of health, dental, and vision
24benefits.
25    The program of health benefits under this Section may
26include any or all of the benefit limitations, including but

 

 

HB6177- 29 -LRB097 21656 JDS 69976 b

1not limited to a reduction in benefits based on eligibility for
2federal medicare benefits, that are provided under subsection
3(a) of Section 6 of this Act for other health benefit programs
4under this Act.
5    (e) Insurance rates and premiums. The Director shall
6determine the insurance rates and premiums for community
7college benefit recipients and community college dependent
8beneficiaries. Rates and premiums may be based in part on age,
9and eligibility for federal Medicare coverage, years of
10service, pension income, and the type of insurance program
11selected. The Director shall also determine premiums that will
12allow for the establishment of an actuarially sound reserve for
13this program.
14    The cost of health benefits under the program shall be paid
15as follows:
16        (1) For each Medicare-covered a community college
17    benefit recipient, other than a Medicare-covered community
18    college benefit recipient who first becomes eligible, on or
19    after the effective date of this amendatory Act of the 97th
20    General Assembly, to participate in the program
21    established under this Section, up to 60% 75% of the total
22    insurance rate shall be paid from the Community College
23    Health Insurance Security Fund.
24        (1.1) For each non-Medicare-covered community college
25    benefit recipient, other than a non-Medicare-covered
26    community college benefit recipient who either first

 

 

HB6177- 30 -LRB097 21656 JDS 69976 b

1    becomes a community college benefit recipient on or after
2    the effective date of this amendatory Act of the 97th
3    General Assembly or first becomes eligible, on or after the
4    effective date of this amendatory Act of the 97th General
5    Assembly, to participate in the program established under
6    this Section, up to 60% of the total insurance rate shall
7    be paid from the Community College Health Insurance
8    Security Fund.
9        (1.2) For each non-Medicare-covered community college
10    benefit recipient who first becomes a community college
11    benefit recipient on or after the effective date of this
12    amendatory Act of the 97th General Assembly, other than a
13    non-Medicare-covered community college benefit recipient
14    who first becomes eligible, on or after the effective date
15    of this amendatory Act of the 97th General Assembly, to
16    participate in the program established under this Section,
17    up to 60% of the total insurance rate that would be paid on
18    behalf of the community college benefit recipient if he or
19    she were eligible for Medicare shall be paid from the
20    Community College Health Insurance Security Fund.
21        (1.3) For each community college benefit recipient who
22    first becomes eligible, on or after the effective date of
23    this amendatory Act of the 97th General Assembly, to
24    participate in the program established under this Section,
25    no portion of the total insurance rate shall be paid from
26    the Community College Health Insurance Security Fund.

 

 

HB6177- 31 -LRB097 21656 JDS 69976 b

1        (2) The balance of the rate of insurance, including the
2    entire premium for any coverage for community college
3    dependent beneficiaries that has been elected, shall be
4    paid by deductions authorized by the community college
5    benefit recipient to be withheld from his or her monthly
6    annuity or benefit payment from the State Universities
7    Retirement System; except that (i) if the balance of the
8    cost of coverage exceeds the amount of the monthly annuity
9    or benefit payment, the difference shall be paid directly
10    to the State Universities Retirement System by the
11    community college benefit recipient, and (ii) all or part
12    of the balance of the cost of coverage may, at the option
13    of the board of trustees of the community college district,
14    be paid to the State Universities Retirement System by the
15    board of the community college district from which the
16    community college benefit recipient retired. The State
17    Universities Retirement System shall promptly deposit all
18    moneys withheld by or paid to it under this subdivision
19    (e)(2) into the Community College Health Insurance
20    Security Fund. These moneys shall not be considered assets
21    of the State Universities Retirement System.
22    (f) Financing. All revenues arising from the
23administration of the health benefit program established under
24this Section shall be deposited into the Community College
25Health Insurance Security Fund, which is hereby created as a
26nonappropriated trust fund to be held outside the State

 

 

HB6177- 32 -LRB097 21656 JDS 69976 b

1Treasury, with the State Treasurer as custodian. Any interest
2earned on moneys in the Community College Health Insurance
3Security Fund shall be deposited into the Fund.
4    Moneys in the Community College Health Insurance Security
5Fund shall be used only to pay the costs of the health benefit
6program established under this Section, including associated
7administrative costs and the establishment of a program
8reserve. Beginning January 1, 1999, the Department of Central
9Management Services may make expenditures from the Community
10College Health Insurance Security Fund for those costs.
11    (g) Contract for benefits. The Director shall by contract,
12self-insurance, or otherwise make available the program of
13health benefits for community college benefit recipients and
14their community college dependent beneficiaries that is
15provided for in this Section. The contract or other arrangement
16for the provision of these health benefits shall be on terms
17deemed by the Director to be in the best interest of the State
18of Illinois and the community college benefit recipients based
19on, but not limited to, such criteria as administrative cost,
20service capabilities of the carrier or other contractor, and
21the costs of the benefits.
22    (h) Continuation of program. It is the intention of the
23General Assembly that the program of health benefits provided
24under this Section be maintained on an ongoing, affordable
25basis. The program of health benefits provided under this
26Section may be amended by the State and is not intended to be a

 

 

HB6177- 33 -LRB097 21656 JDS 69976 b

1pension or retirement benefit subject to protection under
2Article XIII, Section 5 of the Illinois Constitution.
3    (i) Other health benefit plans. A health benefit plan
4provided by a community college district (other than a
5community college district subject to Article VII of the Public
6Community College Act) under the terms of a collective
7bargaining agreement in effect on or prior to the effective
8date of this amendatory Act of 1997 shall continue in force
9according to the terms of that agreement, unless otherwise
10mutually agreed by the parties to that agreement and the
11affected retiree. A community college benefit recipient or
12community college dependent beneficiary whose coverage under
13such a plan expires shall be eligible to begin participating in
14the program established under this Section without any
15interruption or delay in coverage or limitation as to
16pre-existing medical conditions.
17    This Act does not prohibit any community college district
18from offering additional health benefits for its retirees or
19their dependents or survivors.
20(Source: P.A. 90-497, eff. 8-18-97; 90-655, eff. 7-30-98.)
 
21    (5 ILCS 375/10)  (from Ch. 127, par. 530)
22    Sec. 10. Payments by State; premiums.
23    (a) Except as otherwise provided in this Section, the The
24State shall pay the cost of basic non-contributory group life
25insurance and, subject to member paid contributions set by the

 

 

HB6177- 34 -LRB097 21656 JDS 69976 b

1Department or required by this Section, the basic program of
2group health benefits on each eligible member, except a member,
3not otherwise covered by this Act, who has retired as a
4participating member under Article 2 of the Illinois Pension
5Code but is ineligible for the retirement annuity under Section
62-119 of the Illinois Pension Code, and part of each eligible
7member's and retired member's premiums for health insurance
8coverage for enrolled dependents as provided by Section 9. The
9State shall pay the cost of the basic program of group health
10benefits only after benefits are reduced by the amount of
11benefits covered by Medicare for all members and dependents who
12are eligible for benefits under Social Security or the Railroad
13Retirement system or who had sufficient Medicare-covered
14government employment, except that such reduction in benefits
15shall apply only to those members and dependents who (1) first
16become eligible for such Medicare coverage on or after July 1,
171992; or (2) are Medicare-eligible members or dependents of a
18local government unit which began participation in the program
19on or after July 1, 1992; or (3) remain eligible for, but no
20longer receive Medicare coverage which they had been receiving
21on or after July 1, 1992. The Department may determine the
22aggregate level of the State's contribution on the basis of
23actual cost of medical services adjusted for age, sex or
24geographic or other demographic characteristics which affect
25the costs of such programs.
26    The cost of participation in the basic program of group

 

 

HB6177- 35 -LRB097 21656 JDS 69976 b

1health benefits for the dependent or survivor of a living or
2deceased retired employee who was formerly employed by the
3University of Illinois in the Cooperative Extension Service and
4would be an annuitant but for the fact that he or she was made
5ineligible to participate in the State Universities Retirement
6System by clause (4) of subsection (a) of Section 15-107 of the
7Illinois Pension Code shall not be greater than the cost of
8participation that would otherwise apply to that dependent or
9survivor if he or she were the dependent or survivor of an
10annuitant under the State Universities Retirement System.
11    (a-1) (Blank). Beginning January 1, 1998, for each person
12who becomes a new SERS annuitant and participates in the basic
13program of group health benefits, the State shall contribute
14toward the cost of the annuitant's coverage under the basic
15program of group health benefits an amount equal to 5% of that
16cost for each full year of creditable service upon which the
17annuitant's retirement annuity is based, up to a maximum of
18100% for an annuitant with 20 or more years of creditable
19service. The remainder of the cost of a new SERS annuitant's
20coverage under the basic program of group health benefits shall
21be the responsibility of the annuitant. In the case of a new
22SERS annuitant who has elected to receive an alternative
23retirement cancellation payment under Section 14-108.5 of the
24Illinois Pension Code in lieu of an annuity, for the purposes
25of this subsection the annuitant shall be deemed to be
26receiving a retirement annuity based on the number of years of

 

 

HB6177- 36 -LRB097 21656 JDS 69976 b

1creditable service that the annuitant had established at the
2time of his or her termination of service under SERS.
3    (a-2) (Blank). Beginning January 1, 1998, for each person
4who becomes a new SERS survivor and participates in the basic
5program of group health benefits, the State shall contribute
6toward the cost of the survivor's coverage under the basic
7program of group health benefits an amount equal to 5% of that
8cost for each full year of the deceased employee's or deceased
9annuitant's creditable service in the State Employees'
10Retirement System of Illinois on the date of death, up to a
11maximum of 100% for a survivor of an employee or annuitant with
1220 or more years of creditable service. The remainder of the
13cost of the new SERS survivor's coverage under the basic
14program of group health benefits shall be the responsibility of
15the survivor. In the case of a new SERS survivor who was the
16dependent of an annuitant who elected to receive an alternative
17retirement cancellation payment under Section 14-108.5 of the
18Illinois Pension Code in lieu of an annuity, for the purposes
19of this subsection the deceased annuitant's creditable service
20shall be determined as of the date of termination of service
21rather than the date of death.
22    (a-3) (Blank). Beginning January 1, 1998, for each person
23who becomes a new SURS annuitant and participates in the basic
24program of group health benefits, the State shall contribute
25toward the cost of the annuitant's coverage under the basic
26program of group health benefits an amount equal to 5% of that

 

 

HB6177- 37 -LRB097 21656 JDS 69976 b

1cost for each full year of creditable service upon which the
2annuitant's retirement annuity is based, up to a maximum of
3100% for an annuitant with 20 or more years of creditable
4service. The remainder of the cost of a new SURS annuitant's
5coverage under the basic program of group health benefits shall
6be the responsibility of the annuitant.
7    (a-4) (Blank).
8    (a-5) (Blank). Beginning January 1, 1998, for each person
9who becomes a new SURS survivor and participates in the basic
10program of group health benefits, the State shall contribute
11toward the cost of the survivor's coverage under the basic
12program of group health benefits an amount equal to 5% of that
13cost for each full year of the deceased employee's or deceased
14annuitant's creditable service in the State Universities
15Retirement System on the date of death, up to a maximum of 100%
16for a survivor of an employee or annuitant with 20 or more
17years of creditable service. The remainder of the cost of the
18new SURS survivor's coverage under the basic program of group
19health benefits shall be the responsibility of the survivor.
20    (a-6) (Blank). Beginning July 1, 1998, for each person who
21becomes a new TRS State annuitant and participates in the basic
22program of group health benefits, the State shall contribute
23toward the cost of the annuitant's coverage under the basic
24program of group health benefits an amount equal to 5% of that
25cost for each full year of creditable service as a teacher as
26defined in paragraph (2), (3), or (5) of Section 16-106 of the

 

 

HB6177- 38 -LRB097 21656 JDS 69976 b

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

 

 

HB6177- 39 -LRB097 21656 JDS 69976 b

1TRS State annuitant, or new TRS State survivor may waive or
2terminate coverage in the program of group health benefits. Any
3such annuitant, or survivor, or retired employee who has waived
4or terminated coverage may enroll or re-enroll in the program
5of group health benefits only during the annual benefit choice
6period, as determined by the Director; except that in the event
7of termination of coverage due to nonpayment of premiums, the
8annuitant, or survivor, or retired employee may not re-enroll
9in the program.
10    (a-8.5) Beginning on the effective date of this amendatory
11Act of the 97th General Assembly, the Director of Central
12Management Services shall annually determine the amount that
13each annuitant, survivor, and retired employee shall
14contribute toward the basic program of group health benefits.
15To determine that amount, the Director shall take into account
16benefit points (which are calculated by summing (i) in the case
17of annuitants and retired employees, the age in years of the
18benefit recipient when his or her benefits commence and, in the
19case of survivors, the age in years of the decedent at the time
20of death and (ii) the total years of service of the person upon
21whose service that benefit is based) and annual pension income
22in accordance with the requirements of this Act and the
23schedule of required contributions set forth in paragraphs (1)
24through (5) of this subsection (a-8.5):
25        (1) For an annuitant, survivor, or retired employee
26    with fewer than 63 benefit points, the required

 

 

HB6177- 40 -LRB097 21656 JDS 69976 b

1    contribution shall be 100% of the cost of coverage,
2    regardless of pension income.
3        (2) For an annuitant, survivor, or retired employee
4    with 63 to 78 benefit points and:
5            (A) an annual pension income of less than $15,000,
6        the required contribution shall be 20% of the cost of
7        coverage.
8            (B) an annual pension income of at least $15,000
9        but less than $30,000, the required contribution shall
10        be 40% of the cost of coverage.
11            (C) an annual pension income of at least $30,000
12        but less than $50,000, the required contribution shall
13        be 60% of the cost of coverage.
14            (D) an annual pension income of at least $50,000
15        but less than $100,000, the required contribution
16        shall be 80% of the cost of coverage.
17            (E) an annual pension income of at least $100,000
18        but less than $125,000, the required contribution
19        shall be 100% of the cost of coverage.
20            (F) an annual pension income of $125,000 or more,
21        the required contribution shall be 100% of the
22        applicable premium.
23        (3) For an annuitant, survivor, or retired employee
24    with 79 to 85 benefit points and:
25            (A) an annual pension income of less than $15,000,
26        the required contribution shall be 15% of the cost of

 

 

HB6177- 41 -LRB097 21656 JDS 69976 b

1        coverage.
2            (B) an annual pension income of at least $15,000
3        but less than $30,000, the required contribution shall
4        be 30% of the cost of coverage.
5            (C) an annual pension income of at least $30,000
6        but less than $50,000, the required contribution shall
7        be 50% of the cost of coverage.
8            (D) an annual pension income of at least $50,000
9        but less than $100,000, the required contribution
10        shall be 65% of the cost of coverage.
11            (E) an annual pension income of at least $100,000
12        but less than $125,000, the required contribution
13        shall be 85% of the cost of coverage.
14            (F) an annual pension income of $125,000 or more,
15        the required contribution shall be 95% of the cost of
16        coverage.
17        (4) For an annuitant, survivor, or retired employee
18    with 86 to 92 benefit points and:
19            (A) an annual pension income of less than $15,000,
20        the required contribution shall be 10% of the cost of
21        coverage.
22            (B) an annual pension income of at least $15,000
23        but less than $30,000, the required contribution shall
24        be 20% of the cost of coverage.
25            (C) an annual pension income of at least $30,000
26        but less than $50,000, the required contribution shall

 

 

HB6177- 42 -LRB097 21656 JDS 69976 b

1        be 35% of the cost of coverage.
2            (D) an annual pension income of at least $50,000
3        but less than $100,000, the required contribution
4        shall be 50% of the cost of coverage.
5            (E) an annual pension income of at least $100,000
6        but less than $125,000, the required contribution
7        shall be 70% of the cost of coverage.
8            (F) an annual pension income of $125,000 or more,
9        the required contribution shall be 90% of the cost of
10        coverage.
11        (5) For an annuitant, survivor, or retired employee
12    with 93 or more benefit points and:
13            (A) an annual pension income of less than $15,000,
14        the required contribution shall be 5% of the cost of
15        coverage.
16            (B) an annual pension income of at least $15,000
17        but less than $30,000, the required contribution shall
18        be 10% of the cost of coverage.
19            (C) an annual pension income of at least $30,000
20        but less than $50,000, the required contribution shall
21        be 25% of the cost of coverage.
22            (D) an annual pension income of at least $50,000
23        but less than $100,000, the required contribution
24        shall be 35% of the cost of coverage.
25            (E) an annual pension income of at least $100,000
26        but less than $125,000, the required contribution

 

 

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1        shall be 60% of the cost of coverage.
2            (F) an annual pension income of $125,000 or more,
3        the required contribution shall be 80% of the cost of
4        coverage.
5    The Director may by administrative rule alter the schedule
6of required contributions set forth in paragraphs (1) through
7(5) of this subsection to ensure (i) that at least 40% of the
8costs associated with the basic program of group health
9benefits for retired employees are covered by retired
10employees, at least 40% of the costs associated with the basic
11program of group health benefits for annuitants are covered by
12annuitants, and at least 40% of the costs associated with the
13basic program of group health benefits for survivors are
14covered by survivors and (ii) that any costs that are
15associated with the basic program of group health benefits and
16not covered either by the State under subsection (a-8.6) or by
17the annuitant, survivor, or retired employee under paragraphs
18(1) through (5) of this subsection are covered by the
19annuitant, survivor, or retired employee, as applicable.
20    (a-8.6) Beginning on the effective date of this amendatory
21Act of the 97th General Assembly, the State shall contribute
22toward the basic program of group health benefits the following
23amounts:
24        (1) for each Medicare-covered annuitant,
25    Medicare-covered survivor, and Medicare-covered retired
26    employee, other than a Medicare-covered annuitant,

 

 

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1    Medicare-covered survivor, or Medicare-covered retired
2    employee who first becomes an employee on or after the
3    effective date of this amendatory Act of the 97th General
4    Assembly, the remainder of the cost of coverage under the
5    basic program of group health benefits; and
6        (2) for each non-Medicare-covered annuitant,
7    non-Medicare-covered survivor, and non-Medicare-covered
8    retired employee, other than a non-Medicare-covered
9    annuitant, non-Medicare-covered survivor, and
10    non-Medicare-covered retired employee who either first
11    becomes an annuitant, survivor, or retired employee on or
12    after the effective date of this amendatory Act of the 97th
13    General Assembly or first becomes an employee on or after
14    the effective date of this amendatory Act of the 97th
15    General Assembly, the remainder of the cost of coverage
16    under the basic program of group health benefits; and
17        (3) for each non-Medicare-covered annuitant,
18    non-Medicare-covered survivor, and non-Medicare-covered
19    retired employee who first becomes an annuitant, survivor,
20    or retired employee on or after the effective date of this
21    amendatory Act of the 97th General Assembly, other than a
22    non-Medicare-covered annuitant, non-Medicare-covered
23    survivor, or non-Medicare-covered retired employee who
24    first becomes an employee on or after the effective date of
25    this amendatory Act of the 97th General Assembly, an amount
26    that is equal to the amount that the State would pay for

 

 

HB6177- 45 -LRB097 21656 JDS 69976 b

1    that annuitant, survivor, or retired employee if he or she
2    were covered by Medicare.
3    Regardless of Medicare coverage, the State shall not
4contribute toward the basic program of group health benefits
5for annuitants, survivors, or retired employees who first
6become employees on or after the effective date of this
7amendatory Act of the 97th General Assembly. In addition, the
8State's contribution for out-of-State residents shall not
9exceed its contribution for in-State residents.
10    (a-9) No later than May 1 of each calendar year, the
11Director of Central Management Services shall certify in
12writing to the Executive Secretary of the State Employees'
13Retirement System of Illinois the amounts of the Medicare
14supplement health care premiums and the amounts of the health
15care premiums for all other retirees who are not Medicare
16eligible.
17    A separate calculation of the premiums based upon the
18actual cost of each health care plan shall be so certified.
19    The Director of Central Management Services shall provide
20to the Executive Secretary of the State Employees' Retirement
21System of Illinois such information, statistics, and other data
22as he or she may require to review the premium amounts
23certified by the Director of Central Management Services.
24    The Department of Healthcare and Family Services, or any
25successor agency designated to procure healthcare contracts
26pursuant to this Act, is authorized to establish funds,

 

 

HB6177- 46 -LRB097 21656 JDS 69976 b

1separate accounts provided by any bank or banks as defined by
2the Illinois Banking Act, or separate accounts provided by any
3savings and loan association or associations as defined by the
4Illinois Savings and Loan Act of 1985 to be held by the
5Director, outside the State treasury, for the purpose of
6receiving the transfer of moneys from the Local Government
7Health Insurance Reserve Fund. The Department may promulgate
8rules further defining the methodology for the transfers. Any
9interest earned by moneys in the funds or accounts shall inure
10to the Local Government Health Insurance Reserve Fund. The
11transferred moneys, and interest accrued thereon, shall be used
12exclusively for transfers to administrative service
13organizations or their financial institutions for payments of
14claims to claimants and providers under the self-insurance
15health plan. The transferred moneys, and interest accrued
16thereon, shall not be used for any other purpose including, but
17not limited to, reimbursement of administration fees due the
18administrative service organization pursuant to its contract
19or contracts with the Department.
20    (b) State employees who become eligible for this program on
21or after January 1, 1980 in positions normally requiring actual
22performance of duty not less than 1/2 of a normal work period
23but not equal to that of a normal work period, shall be given
24the option of participating in the available program. If the
25employee elects coverage, the State shall contribute on behalf
26of such employee to the cost of the employee's benefit and any

 

 

HB6177- 47 -LRB097 21656 JDS 69976 b

1applicable dependent supplement, that sum which bears the same
2percentage as that percentage of time the employee regularly
3works when compared to normal work period.
4    (c) The basic non-contributory coverage from the basic
5program of group health benefits shall be continued for each
6employee not in pay status or on active service by reason of
7(1) leave of absence due to illness or injury, (2) authorized
8educational leave of absence or sabbatical leave, or (3)
9military leave. This coverage shall continue until expiration
10of authorized leave and return to active service, but not to
11exceed 24 months for leaves under item (1) or (2). This
1224-month limitation and the requirement of returning to active
13service shall not apply to persons receiving ordinary or
14accidental disability benefits or retirement benefits through
15the appropriate State retirement system or benefits under the
16Workers' Compensation or Occupational Disease Act.
17    (d) The basic group life insurance coverage shall continue,
18with full State contribution, where such person is (1) absent
19from active service by reason of disability arising from any
20cause other than self-inflicted, (2) on authorized educational
21leave of absence or sabbatical leave, or (3) on military leave.
22    (e) Where the person is in non-pay status for a period in
23excess of 30 days or on leave of absence, other than by reason
24of disability, educational or sabbatical leave, or military
25leave, such person may continue coverage only by making
26personal payment equal to the amount normally contributed by

 

 

HB6177- 48 -LRB097 21656 JDS 69976 b

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

 

 

HB6177- 49 -LRB097 21656 JDS 69976 b

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

 

 

HB6177- 50 -LRB097 21656 JDS 69976 b

1dependent under this plan or another group policy or plan, and
2(2) at least 50% of the employees are enrolled and the unit of
3local government remits the entire cost of providing coverage
4to those employees, except that a participating school district
5must have enrolled at least 50% of its full-time employees who
6have not waived coverage under the district's group health plan
7by participating in a component of the district's cafeteria
8plan. A participating school district is not required to enroll
9a full-time employee who has waived coverage under the
10district's health plan, provided that an appropriate official
11from the participating school district attests that the
12full-time employee has waived coverage by participating in a
13component of the district's cafeteria plan. For the purposes of
14this subsection, "participating school district" includes a
15unit of local government whose primary purpose is education as
16defined by the Department's rules.
17    Employees of a participating unit of local government who
18are not enrolled due to coverage under another group health
19policy or plan may enroll in the event of a qualifying change
20in status, special enrollment, special circumstance as defined
21by the Director, or during the annual Benefit Choice Period. A
22participating unit of local government may also elect to cover
23its annuitants. Dependent coverage shall be offered on an
24optional basis, with the costs paid by the unit of local
25government, its employees, or some combination of the two as
26determined by the unit of local government. The unit of local

 

 

HB6177- 51 -LRB097 21656 JDS 69976 b

1government shall be responsible for timely collection and
2transmission of dependent premiums.
3    The Director shall annually determine monthly rates of
4payment, subject 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, or contributed
9    by the State for basic insurance coverages on behalf of its
10    employees, adjusted for differences between State
11    employees and employees of the local government in age,
12    sex, geographic location or other relevant demographic
13    variables, plus an amount sufficient to pay for the
14    additional administrative costs of providing coverage to
15    employees of the unit of local government 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 unit of local government.
20    In the case of coverage of local government employees under
21a health maintenance organization, the Director shall annually
22determine for each participating unit of local government the
23maximum monthly amount the unit may contribute toward that
24coverage, based on an analysis of (i) the age, sex, geographic
25location, and other relevant demographic variables of the
26unit's employees and (ii) the cost to cover those employees

 

 

HB6177- 52 -LRB097 21656 JDS 69976 b

1under the State group health benefits plan. The Director may
2similarly determine the maximum monthly amount each unit of
3local government may contribute toward coverage of its
4employees' dependents under a health maintenance organization.
5    Monthly payments by the unit of local government or its
6employees for group health benefits plan or health maintenance
7organization coverage shall be deposited in the Local
8Government Health Insurance Reserve Fund.
9    The Local Government Health Insurance Reserve Fund is
10hereby created as a nonappropriated trust fund to be held
11outside the State Treasury, with the State Treasurer as
12custodian. The Local Government Health Insurance Reserve Fund
13shall be a continuing fund not subject to fiscal year
14limitations. The Local Government Health Insurance Reserve
15Fund is not subject to administrative charges or charge-backs,
16including but not limited to those authorized under Section 8h
17of the State Finance Act. All revenues arising from the
18administration of the health benefits program established
19under this Section shall be deposited into the Local Government
20Health Insurance Reserve Fund. Any interest earned on moneys in
21the Local Government Health Insurance Reserve Fund shall be
22deposited into the Fund. All expenditures from this Fund shall
23be used for payments for health care benefits for local
24government and rehabilitation facility employees, annuitants,
25and dependents, and to reimburse the Department or its
26administrative service organization for all expenses incurred

 

 

HB6177- 53 -LRB097 21656 JDS 69976 b

1in the administration of benefits. No other State funds may be
2used for these purposes.
3    A local government employer's participation or desire to
4participate in a program created under this subsection shall
5not limit that employer's duty to bargain with the
6representative of any collective bargaining unit of its
7employees.
8    (j) Any rehabilitation facility within the State of
9Illinois may apply to the Director to have its employees,
10annuitants, and their eligible dependents provided group
11health coverage under this Act on a non-insured basis. To
12participate, a rehabilitation facility must agree to enroll all
13of its employees and remit the entire cost of providing such
14coverage for its employees, except that the rehabilitation
15facility shall not be required to enroll those of its employees
16who are covered spouses or dependents under this plan or
17another group policy or plan providing health benefits as long
18as (1) an appropriate official from the rehabilitation facility
19attests that each employee not enrolled is a covered spouse or
20dependent under this plan or another group policy or plan, and
21(2) at least 50% of the employees are enrolled and the
22rehabilitation facility remits the entire cost of providing
23coverage to those employees. Employees of a participating
24rehabilitation facility who are not enrolled due to coverage
25under another group health policy or plan may enroll in the
26event of a qualifying change in status, special enrollment,

 

 

HB6177- 54 -LRB097 21656 JDS 69976 b

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

 

 

HB6177- 55 -LRB097 21656 JDS 69976 b

1Local Government Health Insurance Reserve Fund.
2    (k) Any domestic violence shelter or service within the
3State of Illinois may apply to the Director to have its
4employees, annuitants, and their dependents provided group
5health coverage under this Act on a non-insured basis. To
6participate, a domestic violence shelter or service must agree
7to enroll all of its employees and pay the entire cost of
8providing such coverage for its employees. The domestic
9violence shelter 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 domestic violence
13shelter 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
16domestic violence shelter remits the entire cost of providing
17coverage to those employees. Employees of a participating
18domestic violence shelter who are not enrolled due to coverage
19under another group health policy or plan may enroll in the
20event of a qualifying change in status, special enrollment, or
21special circumstance as defined by the Director or during the
22annual Benefit Choice Period. A participating domestic
23violence shelter may also elect to cover its annuitants.
24Dependent coverage shall be offered on an optional basis, with
25employees, or some combination of the 2 as determined by the
26domestic violence shelter or service. The domestic violence

 

 

HB6177- 56 -LRB097 21656 JDS 69976 b

1shelter or service shall be responsible for timely collection
2and transmission 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 domestic violence shelter or
11    service in 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 domestic violence shelter or service
15    and their 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 domestic violence shelter or
19    service.
20    Monthly payments by the domestic violence shelter or
21service or its employees for group health insurance shall be
22deposited in the Local Government Health Insurance Reserve
23Fund.
24    (l) A public community college or entity organized pursuant
25to the Public Community College Act may apply to the Director
26initially to have only annuitants not covered prior to July 1,

 

 

HB6177- 57 -LRB097 21656 JDS 69976 b

11992 by the district's health plan provided health coverage
2under this Act on a non-insured basis. The community college
3must execute a 2-year contract to participate in the Local
4Government Health Plan. Any annuitant may enroll in the event
5of a qualifying change in status, special enrollment, special
6circumstance as defined by the Director, or during the annual
7Benefit Choice Period.
8    The Director shall annually determine monthly rates of
9payment subject to the following constraints: for those
10community colleges with annuitants only enrolled, first year
11rates shall be equal to the average cost to cover claims for a
12State member adjusted for demographics, Medicare
13participation, and other factors; and in the second year, a
14further adjustment of rates shall be made to reflect the actual
15first year's claims experience of the covered annuitants.
16    (l-5) The provisions of subsection (l) become inoperative
17on July 1, 1999.
18    (m) The Director shall adopt any rules deemed necessary for
19implementation of this amendatory Act of 1989 (Public Act
2086-978).
21    (n) Any child advocacy center within the State of Illinois
22may apply to the Director to have its employees, annuitants,
23and their dependents provided group health coverage under this
24Act on a non-insured basis. To participate, a child advocacy
25center must agree to enroll all of its employees and pay the
26entire cost of providing coverage for its employees. The child

 

 

HB6177- 58 -LRB097 21656 JDS 69976 b

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

 

 

HB6177- 59 -LRB097 21656 JDS 69976 b

1    employees, adjusted for differences between State
2    employees and employees of the child advocacy center in
3    age, sex, geographic location, or other relevant
4    demographic variables, plus an amount sufficient to pay for
5    the additional administrative costs of providing coverage
6    to employees of the child advocacy center and their
7    dependents.
8        (2) In subsequent years, a further adjustment shall be
9    made to reflect the actual prior years' claims experience
10    of the employees of the child advocacy center.
11    Monthly payments by the child advocacy center or its
12employees for group health insurance shall be deposited into
13the Local Government Health Insurance Reserve Fund.
14(Source: P.A. 95-331, eff. 8-21-07; 95-632, eff. 9-25-07;
1595-707, eff. 1-11-08; 96-756, eff. 1-1-10; 96-1232, eff.
167-23-10; 96-1519, eff. 2-4-11.)
 
17    Section 99. Effective date. This Act takes effect July 1,
182012.