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91_SB0854eng
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1 AN ACT concerning retired teachers.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The State Employees Group Insurance Act of
5 1971 is amended by changing Sections 6.5 and 10 as follows:
6 (5 ILCS 375/6.5)
7 Sec. 6.5. Health benefits for TRS benefit recipients and
8 TRS dependent beneficiaries.
9 (a) Purpose. It is the purpose of this amendatory Act
10 of 1995 to transfer the administration of the program of
11 health benefits established for benefit recipients and their
12 dependent beneficiaries under Article 16 of the Illinois
13 Pension Code to the Department of Central Management
14 Services.
15 (b) Transition provisions. The Board of Trustees of the
16 Teachers' Retirement System shall continue to administer the
17 health benefit program established under Article 16 of the
18 Illinois Pension Code through December 31, 1995. Beginning
19 January 1, 1996, the Department of Central Management
20 Services shall be responsible for administering a program of
21 health benefits for TRS benefit recipients and TRS dependent
22 beneficiaries under this Section. The Department of Central
23 Management Services and the Teachers' Retirement System shall
24 cooperate in this endeavor and shall coordinate their
25 activities so as to ensure a smooth transition and
26 uninterrupted health benefit coverage.
27 (c) Eligibility. All persons who were enrolled in the
28 Article 16 program at the time of the transfer shall be
29 eligible to participate in the program established under this
30 Section without any interruption or delay in coverage or
31 limitation as to pre-existing medical conditions.
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1 Eligibility to participate shall be determined by the
2 Teachers' Retirement System. Eligibility information shall
3 be communicated to the Department of Central Management
4 Services in a format acceptable to the Department.
5 (d) Coverage. The level of health benefits provided
6 under this Section shall be similar to the level of benefits
7 provided by the program previously established under Article
8 16 of the Illinois Pension Code; except that beginning in
9 State fiscal year 2001, the benefits and participant costs
10 for the following listed benefit areas shall be substantially
11 the same as for the program of basic health benefits provided
12 under this Act for retired State employees:
13 For Managed Health Care Plans:
14 (i) inpatient admission copayment.
15 For the Major Medical Plan:
16 (1) annual deductible;
17 (2) general out-of-pocket maximum;
18 (3) Medicare coordination of benefit.
19 Group life insurance benefits are not included in the
20 benefits to be provided to TRS benefit recipients and TRS
21 dependent beneficiaries under this Act.
22 The program of health benefits under this Section may
23 include any or all of the benefit limitations, including but
24 not limited to a reduction in benefits based on eligibility
25 for federal medicare benefits, that are provided under
26 subsection (a) of Section 6 of this Act for other health
27 benefit programs under this Act.
28 (e) Insurance rates and premiums. The Director shall
29 determine the insurance rates and premiums for TRS benefit
30 recipients and TRS dependent beneficiaries. For Fiscal Year
31 1996, the premium shall be equal to the premium actually
32 charged in Fiscal Year 1995. In subsequent years, the
33 premium shall never be lower than the premium charged in
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1 Fiscal Year 1995. Rates and premiums may be based in part on
2 age and eligibility for federal medicare coverage.
3 The cost of health benefits under the program shall be
4 paid as follows:
5 (1) For a TRS benefit recipient selecting a managed
6 care program, up to 75% of the total insurance rate shall
7 be paid from the Teacher Health Insurance Security Fund.
8 (2) For a TRS benefit recipient selecting the major
9 medical coverage program, up to 50% of the total
10 insurance rate shall be paid from the Teacher Health
11 Insurance Security Fund if a managed care program is
12 accessible, as determined by the Teachers' Retirement
13 System.
14 (3) For a TRS benefit recipient selecting the major
15 medical coverage program, up to 75% of the total
16 insurance rate shall be paid from the Teacher Health
17 Insurance Security Fund if a managed care program is not
18 accessible, as determined by the Teachers' Retirement
19 System.
20 (4) The balance of the rate of insurance, including
21 the entire premium of any coverage for TRS dependent
22 beneficiaries that has been elected, shall be paid by
23 deductions authorized by the TRS benefit recipient to be
24 withheld from his or her monthly annuity or benefit
25 payment from the Teachers' Retirement System; except that
26 (i) if the balance of the cost of coverage exceeds the
27 amount of the monthly annuity or benefit payment, the
28 difference shall be paid directly to the Teachers'
29 Retirement System by the TRS benefit recipient, and (ii)
30 all or part of the balance of the cost of coverage may,
31 at the school board's option, be paid to the Teachers'
32 Retirement System by the school board of the school
33 district from which the TRS benefit recipient retired, in
34 accordance with Section 10-22.3b of the School Code. The
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1 Teachers' Retirement System shall promptly deposit all
2 moneys withheld by or paid to it under this subdivision
3 (e)(4) into the Teacher Health Insurance Security Fund.
4 These moneys shall not be considered assets of the
5 Retirement System.
6 (f) Financing. Beginning July 1, 1995, all revenues
7 arising from the administration of the health benefit
8 programs established under Article 16 of the Illinois Pension
9 Code or this Section shall be deposited into the Teacher
10 Health Insurance Security Fund, which is hereby created as a
11 nonappropriated trust fund to be held outside the State
12 Treasury, with the State Treasurer as custodian. Any
13 interest earned on moneys in the Teacher Health Insurance
14 Security Fund shall be deposited into the Fund.
15 Moneys in the Teacher Health Insurance Security Fund
16 shall be used only to pay the costs of the health benefit
17 program established under this Section, including associated
18 administrative costs, and the costs associated with the
19 health benefit program established under Article 16 of the
20 Illinois Pension Code, as authorized in this Section.
21 Beginning July 1, 1995, the Department of Central Management
22 Services may make expenditures from the Teacher Health
23 Insurance Security Fund for those costs.
24 After other funds authorized for the payment of the costs
25 of the health benefit program established under Article 16 of
26 the Illinois Pension Code are exhausted and until January 1,
27 1996 (or such later date as may be agreed upon by the
28 Director of Central Management Services and the Secretary of
29 the Teachers' Retirement System), the Secretary of the
30 Teachers' Retirement System may make expenditures from the
31 Teacher Health Insurance Security Fund as necessary to pay up
32 to 75% of the cost of providing health coverage to eligible
33 benefit recipients (as defined in Sections 16-153.1 and
34 16-153.3 of the Illinois Pension Code) who are enrolled in
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1 the Article 16 health benefit program and to facilitate the
2 transfer of administration of the health benefit program to
3 the Department of Central Management Services.
4 (g) Contract for benefits. The Director shall by
5 contract, self-insurance, or otherwise make available the
6 program of health benefits for TRS benefit recipients and
7 their TRS dependent beneficiaries that is provided for in
8 this Section. The contract or other arrangement for the
9 provision of these health benefits shall be on terms deemed
10 by the Director to be in the best interest of the State of
11 Illinois and the TRS benefit recipients based on, but not
12 limited to, such criteria as administrative cost, service
13 capabilities of the carrier or other contractor, and the
14 costs of the benefits.
15 (h) Continuation of program. It is the intention of the
16 General Assembly that the program of health benefits provided
17 under this Section be maintained on an ongoing, affordable
18 basis. The program of health benefits provided under this
19 Section may be amended by the State and is not intended to be
20 a pension or retirement benefit subject to protection under
21 Article XIII, Section 5 of the Illinois Constitution.
22 (Source: P.A. 89-21, eff. 6-21-95; 89-25, eff. 6-21-95.)
23 (5 ILCS 375/10) (from Ch. 127, par. 530)
24 Sec. 10. Payments by State; premiums.
25 (a) The State shall pay the cost of basic
26 non-contributory group life insurance and, subject to member
27 paid contributions set by the Department or required by this
28 Section, the basic program of group health benefits on each
29 eligible member, except a member, not otherwise covered by
30 this Act, who has retired as a participating member under
31 Article 2 of the Illinois Pension Code but is ineligible for
32 the retirement annuity under Section 2-119 of the Illinois
33 Pension Code, and part of each eligible member's and retired
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1 member's premiums for health insurance coverage for enrolled
2 dependents as provided by Section 9. The State shall pay the
3 cost of the basic program of group health benefits only after
4 benefits are reduced by the amount of benefits covered by
5 Medicare for all retired members and retired dependents aged
6 65 years or older who are entitled to benefits under Social
7 Security or the Railroad Retirement system or who had
8 sufficient Medicare-covered government employment except that
9 such reduction in benefits shall apply only to those retired
10 members or retired dependents who (1) first become eligible
11 for such Medicare coverage on or after July 1, 1992; or (2)
12 remain eligible for, but no longer receive Medicare coverage
13 which they had been receiving on or after July 1, 1992. The
14 Department may determine the aggregate level of the State's
15 contribution on the basis of actual cost of medical services
16 adjusted for age, sex or geographic or other demographic
17 characteristics which affect the costs of such programs.
18 (a-1) Beginning January 1, 1998, for each person who
19 becomes a new SERS annuitant and participates in the basic
20 program of group health benefits, the State shall contribute
21 toward the cost of the annuitant's coverage under the basic
22 program of group health benefits an amount equal to 5% of
23 that cost for each full year of creditable service upon which
24 the annuitant's retirement annuity is based, up to a maximum
25 of 100% for an annuitant with 20 or more years of creditable
26 service. The remainder of the cost of a new SERS annuitant's
27 coverage under the basic program of group health benefits
28 shall be the responsibility of the annuitant.
29 (a-2) Beginning January 1, 1998, for each person who
30 becomes a new SERS survivor and participates in the basic
31 program of group health benefits, the State shall contribute
32 toward the cost of the survivor's coverage under the basic
33 program of group health benefits an amount equal to 5% of
34 that cost for each full year of the deceased employee's or
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1 deceased annuitant's creditable service in the State
2 Employees' Retirement System of Illinois on the date of
3 death, up to a maximum of 100% for a survivor of an employee
4 or annuitant with 20 or more years of creditable service.
5 The remainder of the cost of the new SERS survivor's coverage
6 under the basic program of group health benefits shall be the
7 responsibility of the survivor.
8 (a-3) Beginning January 1, 1998, for each person who
9 becomes a new SURS annuitant and participates in the basic
10 program of group health benefits, the State shall contribute
11 toward the cost of the annuitant's coverage under the basic
12 program of group health benefits an amount equal to 5% of
13 that cost for each full year of creditable service upon which
14 the annuitant's retirement annuity is based, up to a maximum
15 of 100% for an annuitant with 20 or more years of creditable
16 service. The remainder of the cost of a new SURS annuitant's
17 coverage under the basic program of group health benefits
18 shall be the responsibility of the annuitant.
19 (a-4) Beginning January 1, 1998, for each person who
20 becomes a new SURS retired employee and participates in the
21 basic program of group health benefits, the State shall
22 contribute toward the cost of the retired employee's coverage
23 under the basic program of group health benefits an amount
24 equal to 5% of that cost for each full year that the retired
25 employee was an employee as defined in Section 3, up to a
26 maximum of 100% for a retired employee who was an employee
27 for 20 or more years. The remainder of the cost of a new
28 SURS retired employee's coverage under the basic program of
29 group health benefits shall be the responsibility of the
30 retired employee.
31 (a-5) Beginning January 1, 1998, for each person who
32 becomes a new SURS survivor and participates in the basic
33 program of group health benefits, the State shall contribute
34 toward the cost of the survivor's coverage under the basic
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1 program of group health benefits an amount equal to 5% of
2 that cost for each full year of the deceased employee's or
3 deceased annuitant's creditable service in the State
4 Universities Retirement System on the date of death, up to a
5 maximum of 100% for a survivor of an employee or annuitant
6 with 20 or more years of creditable service. The remainder
7 of the cost of the new SURS survivor's coverage under the
8 basic program of group health benefits shall be the
9 responsibility of the survivor.
10 (a-6) Beginning July 1, 1998, for each person who
11 becomes a new TRS State annuitant and participates in the
12 basic program of group health benefits, the State shall
13 contribute toward the cost of the annuitant's coverage under
14 the basic program of group health benefits an amount equal to
15 5% of that cost for each full year of creditable service as a
16 teacher as defined in paragraph (2), (3), or (5) of Section
17 16-106 of the Illinois Pension Code upon which the
18 annuitant's retirement annuity is based, up to a maximum of
19 100% for an annuitant with 20 or more years of such
20 creditable service. The remainder of the cost of a new TRS
21 State annuitant's coverage under the basic program of group
22 health benefits shall be the responsibility of the annuitant.
23 (a-7) Beginning July 1, 1998, for each person who
24 becomes a new TRS State survivor and participates in the
25 basic program of group health benefits, the State shall
26 contribute toward the cost of the survivor's coverage under
27 the basic program of group health benefits an amount equal to
28 5% of that cost for each full year of the deceased employee's
29 or deceased annuitant's creditable service as a teacher as
30 defined in paragraph (2), (3), or (5) of Section 16-106 of
31 the Illinois Pension Code on the date of death, up to a
32 maximum of 100% for a survivor of an employee or annuitant
33 with 20 or more years of such creditable service. The
34 remainder of the cost of the new TRS State survivor's
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1 coverage under the basic program of group health benefits
2 shall be the responsibility of the survivor.
3 (a-8) A new SERS annuitant, new SERS survivor, new SURS
4 annuitant, new SURS retired employee, new SURS survivor, new
5 TRS State annuitant, or new TRS State survivor may waive or
6 terminate coverage in the program of group health benefits.
7 Any such annuitant, survivor, or retired employee who has
8 waived or terminated coverage may enroll or re-enroll in the
9 program of group health benefits only during the annual
10 benefit choice period, as determined by the Director; except
11 that in the event of termination of coverage due to
12 nonpayment of premiums, the annuitant, survivor, or retired
13 employee may not re-enroll in the program.
14 (a-9) No later than May 1 of each calendar year, the
15 Director of Central Management Services shall certify in
16 writing to the Executive Secretary of the State Employees'
17 Retirement System of Illinois and the Executive Director of
18 the Teachers' Retirement System of the State of Illinois the
19 amounts of the Medicare supplement health care premiums and
20 the amounts of the health care premiums for all other
21 retirees who are not Medicare eligible.
22 A separate calculation of the premiums based upon the
23 actual cost of each health care plan shall be so certified.
24 The Director of Central Management Services shall provide
25 to the Executive Secretary of the State Employees' Retirement
26 System of Illinois and the Executive Director of the
27 Teachers' Retirement System of the State of Illinois such
28 information, statistics, and other data as they he or she may
29 require to review the premium amounts certified by the
30 Director of Central Management Services.
31 (b) State employees who become eligible for this program
32 on or after January 1, 1980 in positions normally requiring
33 actual performance of duty not less than 1/2 of a normal work
34 period but not equal to that of a normal work period, shall
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1 be given the option of participating in the available
2 program. If the employee elects coverage, the State shall
3 contribute on behalf of such employee to the cost of the
4 employee's benefit and any applicable dependent supplement,
5 that sum which bears the same percentage as that percentage
6 of time the employee regularly works when compared to normal
7 work period.
8 (c) The basic non-contributory coverage from the basic
9 program of group health benefits shall be continued for each
10 employee not in pay status or on active service by reason of
11 (1) leave of absence due to illness or injury, (2) authorized
12 educational leave of absence or sabbatical leave, or (3)
13 military leave with pay and benefits. This coverage shall
14 continue until expiration of authorized leave and return to
15 active service, but not to exceed 24 months for leaves under
16 item (1) or (2). This 24-month limitation and the requirement
17 of returning to active service shall not apply to persons
18 receiving ordinary or accidental disability benefits or
19 retirement benefits through the appropriate State retirement
20 system or benefits under the Workers' Compensation or
21 Occupational Disease Act.
22 (d) The basic group life insurance coverage shall
23 continue, with full State contribution, where such person is
24 (1) absent from active service by reason of disability
25 arising from any cause other than self-inflicted, (2) on
26 authorized educational leave of absence or sabbatical leave,
27 or (3) on military leave with pay and benefits.
28 (e) Where the person is in non-pay status for a period
29 in excess of 30 days or on leave of absence, other than by
30 reason of disability, educational or sabbatical leave, or
31 military leave with pay and benefits, such person may
32 continue coverage only by making personal payment equal to
33 the amount normally contributed by the State on such person's
34 behalf. Such payments and coverage may be continued: (1)
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1 until such time as the person returns to a status eligible
2 for coverage at State expense, but not to exceed 24 months,
3 (2) until such person's employment or annuitant status with
4 the State is terminated, or (3) for a maximum period of 4
5 years for members on military leave with pay and benefits and
6 military leave without pay and benefits (exclusive of any
7 additional service imposed pursuant to law).
8 (f) The Department shall establish by rule the extent
9 to which other employee benefits will continue for persons in
10 non-pay status or who are not in active service.
11 (g) The State shall not pay the cost of the basic
12 non-contributory group life insurance, program of health
13 benefits and other employee benefits for members who are
14 survivors as defined by paragraphs (1) and (2) of subsection
15 (q) of Section 3 of this Act. The costs of benefits for
16 these survivors shall be paid by the survivors or by the
17 University of Illinois Cooperative Extension Service, or any
18 combination thereof.
19 (h) Those persons occupying positions with any
20 department as a result of emergency appointments pursuant to
21 Section 8b.8 of the Personnel Code who are not considered
22 employees under this Act shall be given the option of
23 participating in the programs of group life insurance, health
24 benefits and other employee benefits. Such persons electing
25 coverage may participate only by making payment equal to the
26 amount normally contributed by the State for similarly
27 situated employees. Such amounts shall be determined by the
28 Director. Such payments and coverage may be continued until
29 such time as the person becomes an employee pursuant to this
30 Act or such person's appointment is terminated.
31 (i) Any unit of local government within the State of
32 Illinois may apply to the Director to have its employees,
33 annuitants, and their dependents provided group health
34 coverage under this Act on a non-insured basis. To
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1 participate, a unit of local government must agree to enroll
2 all of its employees, who may select coverage under either
3 the State group health insurance plan or a health maintenance
4 organization that has contracted with the State to be
5 available as a health care provider for employees as defined
6 in this Act. A unit of local government must remit the
7 entire cost of providing coverage under the State group
8 health insurance plan or, for coverage under a health
9 maintenance organization, an amount determined by the
10 Director based on an analysis of the sex, age, geographic
11 location, or other relevant demographic variables for its
12 employees, except that the unit of local government shall not
13 be required to enroll those of its employees who are covered
14 spouses or dependents under this plan or another group policy
15 or plan providing health benefits as long as (1) an
16 appropriate official from the unit of local government
17 attests that each employee not enrolled is a covered spouse
18 or dependent under this plan or another group policy or plan,
19 and (2) at least 85% of the employees are enrolled and the
20 unit of local government remits the entire cost of providing
21 coverage to those employees. Employees of a participating
22 unit of local government who are not enrolled due to coverage
23 under another group health policy or plan may enroll at a
24 later date subject to submission of satisfactory evidence of
25 insurability and provided that no benefits shall be payable
26 for services incurred during the first 6 months of coverage
27 to the extent the services are in connection with any
28 pre-existing condition. A participating unit of local
29 government may also elect to cover its annuitants. Dependent
30 coverage shall be offered on an optional basis, with the
31 costs paid by the unit of local government, its employees, or
32 some combination of the two as determined by the unit of
33 local government. The unit of local government shall be
34 responsible for timely collection and transmission of
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1 dependent premiums.
2 The Director shall annually determine monthly rates of
3 payment, subject to the following constraints:
4 (1) In the first year of coverage, the rates shall
5 be equal to the amount normally charged to State
6 employees for elected optional coverages or for enrolled
7 dependents coverages or other contributory coverages, or
8 contributed by the State for basic insurance coverages on
9 behalf of its employees, adjusted for differences between
10 State employees and employees of the local government in
11 age, sex, geographic location or other relevant
12 demographic variables, plus an amount sufficient to pay
13 for the additional administrative costs of providing
14 coverage to employees of the unit of local government and
15 their dependents.
16 (2) In subsequent years, a further adjustment shall
17 be made to reflect the actual prior years' claims
18 experience of the employees of the unit of local
19 government.
20 In the case of coverage of local government employees
21 under a health maintenance organization, the Director shall
22 annually determine for each participating unit of local
23 government the maximum monthly amount the unit may contribute
24 toward that coverage, based on an analysis of (i) the age,
25 sex, geographic location, and other relevant demographic
26 variables of the unit's employees and (ii) the cost to cover
27 those employees under the State group health insurance plan.
28 The Director may similarly determine the maximum monthly
29 amount each unit of local government may contribute toward
30 coverage of its employees' dependents under a health
31 maintenance organization.
32 Monthly payments by the unit of local government or its
33 employees for group health insurance or health maintenance
34 organization coverage shall be deposited in the Local
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1 Government Health Insurance Reserve Fund. The Local
2 Government Health Insurance Reserve Fund shall be a
3 continuing fund not subject to fiscal year limitations. All
4 expenditures from this fund shall be used for payments for
5 health care benefits for local government and rehabilitation
6 facility employees, annuitants, and dependents, and to
7 reimburse the Department or its administrative service
8 organization for all expenses incurred in the administration
9 of benefits. No other State funds may be used for these
10 purposes.
11 A local government employer's participation or desire to
12 participate in a program created under this subsection shall
13 not limit that employer's duty to bargain with the
14 representative of any collective bargaining unit of its
15 employees.
16 (j) Any rehabilitation facility within the State of
17 Illinois may apply to the Director to have its employees,
18 annuitants, and their dependents provided group health
19 coverage under this Act on a non-insured basis. To
20 participate, a rehabilitation facility must agree to enroll
21 all of its employees and remit the entire cost of providing
22 such coverage for its employees, except that the
23 rehabilitation facility shall not be required to enroll those
24 of its employees who are covered spouses or dependents under
25 this plan or another group policy or plan providing health
26 benefits as long as (1) an appropriate official from the
27 rehabilitation facility attests that each employee not
28 enrolled is a covered spouse or dependent under this plan or
29 another group policy or plan, and (2) at least 85% of the
30 employees are enrolled and the rehabilitation facility remits
31 the entire cost of providing coverage to those employees.
32 Employees of a participating rehabilitation facility who are
33 not enrolled due to coverage under another group health
34 policy or plan may enroll at a later date subject to
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1 submission of satisfactory evidence of insurability and
2 provided that no benefits shall be payable for services
3 incurred during the first 6 months of coverage to the extent
4 the services are in connection with any pre-existing
5 condition. A participating rehabilitation facility may also
6 elect to cover its annuitants. Dependent coverage shall be
7 offered on an optional basis, with the costs paid by the
8 rehabilitation facility, its employees, or some combination
9 of the 2 as determined by the rehabilitation facility. The
10 rehabilitation facility shall be responsible for timely
11 collection and transmission of dependent premiums.
12 The Director shall annually determine quarterly rates of
13 payment, subject to the following constraints:
14 (1) In the first year of coverage, the rates shall
15 be equal to the amount normally charged to State
16 employees for elected optional coverages or for enrolled
17 dependents coverages or other contributory coverages on
18 behalf of its employees, adjusted for differences between
19 State employees and employees of the rehabilitation
20 facility in age, sex, geographic location or other
21 relevant demographic variables, plus an amount sufficient
22 to pay for the additional administrative costs of
23 providing coverage to employees of the rehabilitation
24 facility and their dependents.
25 (2) In subsequent years, a further adjustment shall
26 be made to reflect the actual prior years' claims
27 experience of the employees of the rehabilitation
28 facility.
29 Monthly payments by the rehabilitation facility or its
30 employees for group health insurance shall be deposited in
31 the Local Government Health Insurance Reserve Fund.
32 (k) Any domestic violence shelter or service within the
33 State of Illinois may apply to the Director to have its
34 employees, annuitants, and their dependents provided group
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1 health coverage under this Act on a non-insured basis. To
2 participate, a domestic violence shelter or service must
3 agree to enroll all of its employees and pay the entire cost
4 of providing such coverage for its employees. A
5 participating domestic violence shelter may also elect to
6 cover its annuitants. Dependent coverage shall be offered on
7 an optional basis, with employees, or some combination of the
8 2 as determined by the domestic violence shelter or service.
9 The domestic violence shelter or service shall be responsible
10 for timely collection and transmission of dependent premiums.
11 The Director shall annually determine quarterly rates of
12 payment, subject to the following constraints:
13 (1) In the first year of coverage, the rates shall
14 be equal to the amount normally charged to State
15 employees for elected optional coverages or for enrolled
16 dependents coverages or other contributory coverages on
17 behalf of its employees, adjusted for differences between
18 State employees and employees of the domestic violence
19 shelter or service in age, sex, geographic location or
20 other relevant demographic variables, plus an amount
21 sufficient to pay for the additional administrative costs
22 of providing coverage to employees of the domestic
23 violence shelter or service and their dependents.
24 (2) In subsequent years, a further adjustment shall
25 be made to reflect the actual prior years' claims
26 experience of the employees of the domestic violence
27 shelter or service.
28 (3) In no case shall the rate be less than the
29 amount normally charged to State employees or contributed
30 by the State on behalf of its employees.
31 Monthly payments by the domestic violence shelter or
32 service or its employees for group health insurance shall be
33 deposited in the Local Government Health Insurance Reserve
34 Fund.
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1 (l) A public community college or entity organized
2 pursuant to the Public Community College Act may apply to the
3 Director initially to have only annuitants not covered prior
4 to July 1, 1992 by the district's health plan provided health
5 coverage under this Act on a non-insured basis. The
6 community college must execute a 2-year contract to
7 participate in the Local Government Health Plan. Those
8 annuitants enrolled initially under this contract shall have
9 no benefits payable for services incurred during the first 6
10 months of coverage to the extent the services are in
11 connection with any pre-existing condition. Any annuitant
12 who may enroll after this initial enrollment period shall be
13 subject to submission of satisfactory evidence of
14 insurability and to the pre-existing conditions limitation.
15 The Director shall annually determine monthly rates of
16 payment subject to the following constraints: for those
17 community colleges with annuitants only enrolled, first year
18 rates shall be equal to the average cost to cover claims for
19 a State member adjusted for demographics, Medicare
20 participation, and other factors; and in the second year, a
21 further adjustment of rates shall be made to reflect the
22 actual first year's claims experience of the covered
23 annuitants.
24 (m) The Director shall adopt any rules deemed necessary
25 for implementation of this amendatory Act of 1989 (Public Act
26 86-978).
27 (Source: P.A. 89-53, eff. 7-1-95; 89-236, eff. 8-4-95;
28 89-324, eff. 8-13-95; 89-626, eff. 8-9-96; 90-65, eff.
29 7-7-97; 90-582, eff. 5-27-98; 90-655, eff. 7-30-98; revised
30 8-3-98.)
31 Section 99. Effective date. This Act takes effect upon
32 becoming law.
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