Rep. Karen May
Filed: 5/24/2010
 
 

 




 

 		












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AMENDMENT TO SENATE BILL 3660




2
    AMENDMENT NO. ______. Amend Senate Bill 3660, AS AMENDED,


 
3
by inserting Article 17 in its proper numeric sequence as 
4
follows:

 
5

"ARTICLE 17.

 
6
    Section 17-1. Declaration. State retirees currently 
7
receive a much higher subsidy of their health care premiums (a 
8
100% subsidy for retirees with 20 or more years of service) 
9
than most retirees in health benefits plans in other states and 
10
in the private sector; reform of the State's health benefits 
11
program should require significantly greater cost-sharing by 
12
State retirees;  and such reform would substantially reduce both 
13
the annual cost of the State's retiree health care plan under 
14
the State Employees Group Insurance Act of 1971 and the State's 
15
$24 billion unfunded liability associated with that plan.
 
 


 






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    Section 17-5. The State Employees Group Insurance Act of 
2
1971 is amended  by changing Section 10 as follows:
 
3
    (5 ILCS 375/10)  (from Ch. 127, par. 530)
4
    Sec. 10. Payments by State; premiums. 
5
    (a) The State shall pay the cost of basic non-contributory 
6
group life
insurance and, subject to member paid contributions 
7
set by the Department or
required by this Section, the basic 
8
program of group health benefits on each
eligible member, 
9
except a member, not otherwise
covered by this Act, who has 
10
retired as a participating member under Article 2
of the 
11
Illinois Pension Code but is ineligible for the retirement 
12
annuity under
Section 2-119 of the Illinois Pension Code, and 
13
part of each eligible member's
and retired member's premiums 
14
for health insurance coverage for enrolled
dependents as 
15
provided by Section 9.  The amount of the monthly premium to be 
16
paid by a retired member or the surviving spouse or dependent 
17
of a deceased member shall  be an incrementally increasing fixed 
18
dollar amount, determined by the Department by rule, for each 
19
of the following ranges that includes the retired member's or 
20
survivor's annual income amount under the Illinois Pension 
21
Code:  (i) less than $30,000, (ii) $30,000 or more but less than 
22
$50,000, (iii) $50,000 or more but less than $75,000, (iv) 
23
$75,000 or more but less than $100,000, (v) $100,000 or more 
24
but less than $125,000, (vi) $125,000 or more but less than 
25
$150,000, and (vii) $150,000 or more; the amount of the annuity 
 


 






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of a member or the surviving spouse or dependent of a member 
2
who elected to receive an alternative retirement cancellation 
3
payment under Section 14-108.5 of the Illinois Pension Code 
4
shall be calculated as provided in subsection (a-1) or 
5
subsection (a-2), respectively, of this Section.  In 
6
determining the incrementally increasing fixed dollar amounts, 
7
the Department shall consider principles of fairness that 
8
assure that the premium amount to be paid by a retired member 
9
or survivor does not cause that retired member or survivor 
10
financial hardship that pushes him or her below the federal 
11
poverty level or into qualification for Medicaid. The State 
12
shall pay the cost of the basic
program of group health 
13
benefits only after benefits are reduced by: (A) the amount
of 
14
benefits covered by Medicare for all members and dependents
who 
15
are eligible for benefits under Social Security or
the Railroad 
16
Retirement system or who had sufficient Medicare-covered

17
government employment, except that such reduction in benefits 
18
shall apply only
to those members and dependents who (1) first 
19
become eligible
for such Medicare coverage on or after July 1, 
20
1992, ; or (2) are
Medicare-eligible members or dependents of a 
21
local government unit which began
participation in the program 
22
on or after July 1, 1992, ; or (3) remain eligible
for, but no 
23
longer receive Medicare coverage which they had been receiving 
24
on
or after July 1, 1992; and (B) in the case of a retired 
25
member or a deceased member's surviving spouse or dependent, 
26
the amount of benefits covered by a health benefits plan 
 


 






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provided by a current employer of the annuitant or the 
2
annuitant's spouse, if any; the Department, by rule, shall 
3
provide for periodic audits to ensure compliance with these 
4
provisions. The Department may determine the aggregate level of 
5
the
State's contribution on the basis of actual cost of medical 
6
services adjusted
for age, sex or geographic or other 
7
demographic characteristics which affect
the costs of such 
8
programs.
9
    The cost of participation in the basic program of group 
10
health benefits
for the dependent or survivor of a living or 
11
deceased retired employee who was
formerly employed by the 
12
University of Illinois in the Cooperative Extension
Service and 
13
would be an annuitant but for the fact that he or she was made

14
ineligible to participate in the State Universities Retirement 
15
System by clause
(4) of subsection (a) of Section 15-107 of the 
16
Illinois Pension Code shall not
be greater than the cost of 
17
participation that would otherwise apply to that
dependent or 
18
survivor if he or she were the dependent or survivor of an

19
annuitant under the State Universities Retirement System.
20
    (a-1) Beginning January 1, 1998, for each person who 
21
becomes a new SERS
annuitant and participates in the basic 
22
program of group health benefits, the
State shall contribute 
23
toward the cost of the annuitant's
coverage under the basic 
24
program of group health benefits an amount equal
to 5% of that 
25
cost for each full year of creditable service upon which the

26
annuitant's retirement annuity is based, up to a maximum of 
 


 






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100% for an
annuitant with 20 or more years of creditable 
2
service, minus the amount of the premium required by subsection 
3
(a) of this Section.
The remainder of the cost of a new SERS 
4
annuitant's coverage under the basic
program of group health 
5
benefits shall be the responsibility of the
annuitant. In the 
6
case of a new SERS annuitant who has elected to receive an 
7
alternative retirement cancellation payment under Section 
8
14-108.5 of the Illinois Pension  Code in lieu of an annuity, 
9
for the purposes of this subsection the annuitant shall be 
10
deemed to be receiving a retirement annuity based on the number 
11
of years of creditable service that the annuitant had 
12
established at the time of his or her termination of service 
13
under SERS.

14
    (a-2) Beginning January 1, 1998, for each person who 
15
becomes a new SERS
survivor and participates in the basic 
16
program of group health benefits, the
State shall contribute 
17
toward the cost of the survivor's
coverage under the basic 
18
program of group health benefits an amount equal
to 5% of that 
19
cost for each full year of the deceased employee's or deceased

20
annuitant's creditable service in the State Employees' 
21
Retirement System of
Illinois on the date of death, up to a 
22
maximum of 100% for a survivor of an
employee or annuitant with 
23
20 or more years of creditable service, minus the amount of the 
24
premium required by subsection (a) of this Section.  The

25
remainder of the cost of the new SERS survivor's coverage under 
26
the basic
program of group health benefits shall be the 
 


 






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responsibility of the survivor. In the case of a new SERS 
2
survivor who was the dependent of an annuitant who elected to 
3
receive an alternative retirement cancellation payment under 
4
Section 14-108.5 of the Illinois Pension  Code in lieu of an 
5
annuity, for the purposes of this subsection the deceased 
6
annuitant's creditable service shall be determined as of the 
7
date of termination of service rather than the date of death.
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 that 
13
cost for each full year of creditable service upon which the

14
annuitant's retirement annuity is based, up to a maximum of 
15
100% for an
annuitant with 20 or more years of creditable 
16
service, minus the amount of the premium required by subsection 
17
(a) of this Section.
The remainder of the cost of a new SURS 
18
annuitant's coverage under the basic
program of group health 
19
benefits shall be the responsibility of the
annuitant.
20
    (a-4) (Blank).
21
    (a-5) Beginning January 1, 1998, for each person who 
22
becomes a new SURS
survivor and participates in the basic 
23
program of group health benefits, the
State shall contribute 
24
toward the cost of the survivor's coverage under the
basic 
25
program of group health benefits an amount equal to 5% of that 
26
cost for
each full year of the deceased employee's or deceased 
 


 






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annuitant's creditable
service in the State Universities 
2
Retirement System on the date of death, up to
a maximum of 100% 
3
for a survivor of an
employee or annuitant with 20 or more 
4
years of creditable service, minus the amount of the premium 
5
required by subsection (a) of this Section.  The
remainder of 
6
the cost of the new SURS survivor's coverage under the basic

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


 






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new TRS
State survivor and participates in the basic program of 
2
group health benefits,
the State shall contribute toward the 
3
cost of the survivor's coverage under the
basic program of 
4
group health benefits an amount equal to 5% of that cost for

5
each full year of the deceased employee's or deceased 
6
annuitant's creditable
service
as a teacher as defined in 
7
paragraph (2), (3), or (5) of Section 16-106 of the
Illinois 
8
Pension Code
on the date of death, up to a maximum of 100%, 
9
minus the amount of the premium required by subsection (a) of 
10
this Section;
except that the State contribution shall be 12.5% 
11
per year (rather than 5%) for
each full year of the deceased 
12
employee's or deceased annuitant's creditable
service as a 
13
regional superintendent or assistant regional superintendent 
14
of
schools, minus the amount of the premium required by 
15
subsection (a) of this Section.
The remainder of
the cost of 
16
the new TRS State survivor's coverage under the basic program 
17
of
group health benefits shall be the responsibility of the 
18
survivor.
19
    (a-7A) Beginning July 1, 2010, for each person who becomes 
20
a new General Assembly Retirement System (GARS) annuitant under 
21
the Illinois Pension Code and participates in the basic program 
22
of group health benefits, the State shall contribute toward the 
23
cost of the annuitant's coverage under the basic program of 
24
group health benefits an amount equal to 5% of that cost for 
25
each full year of creditable service upon which the annuitant's 
26
retirement annuity is based, up to a maximum of 100% for an 
 


 






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annuitant with 20 or more years of creditable service, minus 
2
the amount of the premium required by subsection (a) of this 
3
Section.  The remainder of the cost of a new GARS annuitant's 
4
coverage under the basic program of group health benefits shall 
5
be the responsibility of the annuitant.
6
    (a-7B) Beginning July 1, 2010, for each person who becomes 
7
a new General Assembly Retirement System (GARS) survivor under 
8
the Illinois Pension Code and participates in the basic program 
9
of group health benefits, the State shall contribute toward the 
10
cost of the survivor's coverage under the basic program of 
11
group health benefits an amount equal to 5% of that cost for 
12
each full year of the deceased member's creditable service in 
13
the General Assembly Retirement System on the date of death, up 
14
to a maximum of 100% for a survivor of a member with 20 or more 
15
years of creditable service, minus the amount of the premium 
16
required by subsection (a) of this Section.  The remainder of 
17
the cost of a new GARS survivor's coverage under the basic 
18
program of group health benefits shall be the responsibility of 
19
the annuitant.
20
    (a-7C) Beginning July 1, 2010, for each person who becomes 
21
a new Judges Retirement System of Illinois (JRS) annuitant 
22
under the Illinois Pension Code and participates in the basic 
23
program of group health benefits, the State shall contribute 
24
toward the cost of the annuitant's coverage under the basic 
25
program of group health benefits an amount equal to 5% of that 
26
cost for each full year of creditable service upon which the 
 


 






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annuitant's retirement annuity is based, up to a maximum of 
2
100% for an annuitant with 20 or more years of creditable 
3
service, minus the amount of the premium required by subsection 
4
(a) of this Section.  The remainder of the cost of a new JRS 
5
annuitant's coverage under the basic program of group health 
6
benefits shall be the responsibility of the annuitant.
7
    (a-7D) Beginning July 1, 2010, for each person who becomes 
8
a new Judges Retirement System of Illinois (JRS) survivor under 
9
the Illinois Pension Code and participates in the basic program 
10
of group health benefits, the State shall contribute toward the 
11
cost of the survivor's coverage under the basic program of 
12
group health benefits an amount equal to 5% of that cost for 
13
each full year of the deceased member's creditable service in 
14
the Judges Retirement System of Illinois on the date of death, 
15
up to a maximum of 100% for a survivor of a member with 20 or 
16
more years of creditable service, minus the amount of the 
17
premium required by subsection (a) of this Section.  The 
18
remainder of the cost of a new JRS survivor's coverage under 
19
the basic program of group health benefits shall be the 
20
responsibility of the annuitant. 
21
    (a-8) An annuitant or survivor described in any of 
22
subsections (a-1) through (a-7D) A new SERS annuitant, new SERS 
23
survivor, new SURS
annuitant, new SURS survivor, new TRS State

24
annuitant, or new TRS State survivor may waive or terminate 
25
coverage in
the program of group health benefits.  Any such 
26
annuitant or survivor
who has waived or terminated coverage may 
 


 






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enroll or re-enroll in the
program of group health benefits 
2
only during the annual benefit choice period,
as determined by 
3
the Director; except that in the event of termination of

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


 






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Director, outside the State treasury, for the purpose of 
2
receiving the transfer of moneys from the Local Government 
3
Health Insurance Reserve Fund. The Department may promulgate 
4
rules further defining the methodology for the transfers. Any 
5
interest earned by moneys in the funds or accounts shall inure 
6
to the Local Government Health Insurance Reserve Fund. The 
7
transferred moneys, and interest accrued thereon, shall be used 
8
exclusively for transfers to administrative service 
9
organizations or their financial institutions for payments of 
10
claims to claimants and providers under the self-insurance 
11
health plan. The transferred moneys, and interest accrued 
12
thereon, shall not be used for any other purpose including, but 
13
not limited to, reimbursement of administration fees due the 
14
administrative service organization pursuant to its contract 
15
or contracts with the Department.

16
    (a-10) The changes made by this amendatory Act of the 96th 
17
General Assembly:
18
        (1) Shall be implemented in such a manner that neither 
19
    the State nor Medicare-eligible retired members subsidize 
20
    the additional  health care costs associated with members 
21
    who retire before becoming Medicare-eligible.
22
        (2) Shall apply consistently to persons who are or 
23
    become employees, retired members, or survivors on or after 
24
    its effective date, including those persons subject to 
25
    collective bargaining agreements.
26
        (3) Are null and void to the extent those changes 
 


 






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    conflict with any federal program to subsidize retiree 
2
    reimbursement or any federal law under which the State may 
3
    access federal dollars. 
4
    (b) State employees who become eligible for this program on 
5
or after January
1, 1980 in positions normally requiring actual 
6
performance of duty not less
than 1/2 of a normal work period 
7
but not equal to that of a normal work period,
shall be given 
8
the option of participating in the available program. If the

9
employee elects coverage, the State shall contribute on behalf 
10
of such employee
to the cost of the employee's benefit and any 
11
applicable dependent supplement,
that sum which bears the same 
12
percentage as that percentage of time the
employee regularly 
13
works when compared to normal work period.
14
    (c) The basic non-contributory coverage from the basic 
15
program of
group health benefits shall be continued for each 
16
employee not in pay status or
on active service by reason of 
17
(1) leave of absence due to illness or injury,
(2) authorized 
18
educational leave of absence or sabbatical leave, or (3)

19
military leave with pay and benefits. This coverage shall 
20
continue until
expiration of authorized leave and return to 
21
active service, but not to exceed
24 months for leaves under 
22
item (1) or (2). This 24-month limitation and the
requirement 
23
of returning to active service shall not apply to persons 
24
receiving
ordinary or accidental disability benefits or 
25
retirement benefits through the
appropriate State retirement 
26
system or benefits under the Workers' Compensation
or 
 


 






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Occupational Disease Act.
2
    (d) The basic group life insurance coverage shall continue, 
3
with
full State contribution, where such person is (1) absent 
4
from active
service by reason of disability arising from any 
5
cause other than
self-inflicted, (2) on authorized educational 
6
leave of absence or
sabbatical leave, or (3) on military leave 
7
with pay and benefits.
8
    (e) Where the person is in non-pay status for a period in 
9
excess of
30 days or on leave of absence, other than by reason 
10
of disability,
educational or sabbatical leave, or military 
11
leave with pay and benefits, such
person may continue coverage 
12
only by making personal
payment equal to the amount normally 
13
contributed by the State on such person's
behalf. Such payments 
14
and coverage may be continued: (1) until such time as
the 
15
person returns to a status eligible for coverage at State 
16
expense, but not
to exceed 24 months, (2) until such person's 
17
employment or annuitant status
with the State is terminated, or 
18
(3) for a maximum period of 4 years for
members on military 
19
leave with pay and benefits and military leave without pay
and 
20
benefits (exclusive of any additional service imposed pursuant 
21
to law).
22
    (f) The Department shall  establish by rule the extent to 
23
which other
employee benefits will continue for persons in 
24
non-pay status or who are
not in active service.
25
    (g) The State shall not pay the cost of the basic 
26
non-contributory
group life insurance, program of health 
 


 






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benefits and other employee benefits
for members who are 
2
survivors as defined by paragraphs (1) and (2) of
subsection 
3
(q) of Section 3 of this Act.  The costs of benefits for these

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


 






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employees, who may select coverage under either the State group

2
health benefits plan or a health maintenance organization that 
3
has
contracted with the State to be available as a health care 
4
provider for
employees as defined in this Act.  A unit of local 
5
government must remit the
entire cost of providing coverage 
6
under the State group health benefits plan
or, for coverage 
7
under a health maintenance organization, an amount determined

8
by the Director based on an analysis of the sex, age, 
9
geographic location, or
other relevant demographic variables 
10
for its employees, except that the unit of
local government 
11
shall not be required to enroll those of its employees who are

12
covered spouses or dependents under this plan or another group 
13
policy or plan
providing health benefits as long as (1) an 
14
appropriate official from the unit
of local government attests 
15
that each employee not enrolled is a covered spouse
or 
16
dependent under this plan or another group policy or plan, and 
17
(2) at least
50% of the employees are enrolled and the unit of 
18
local government remits
the entire cost of providing coverage 
19
to those employees, except that a
participating school district 
20
must have enrolled at least 50% of its full-time
employees who 
21
have not waived coverage under the district's group health
plan 
22
by participating in a component of the district's cafeteria 
23
plan.  A
participating school district is not required to enroll 
24
a full-time employee
who has waived coverage under the 
25
district's health plan, provided that an
appropriate official 
26
from the participating school district attests that the

 


 






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full-time employee has waived coverage by participating in a 
2
component of the
district's cafeteria plan.  For the purposes of 
3
this subsection, "participating
school district" includes a 
4
unit of local government whose primary purpose is
education as 
5
defined by the Department's rules.
6
    Employees of a participating unit of local government who 
7
are not enrolled
due to coverage under another group health 
8
policy or plan may enroll in
the event of a qualifying change 
9
in status, special enrollment, special
circumstance as defined 
10
by the Director, or during the annual Benefit Choice
Period.  A 
11
participating unit of local government may also elect to cover 
12
its
annuitants.  Dependent coverage shall be offered on an 
13
optional basis, with the
costs paid by the unit of local 
14
government, its employees, or some combination
of the two as 
15
determined by the unit of local government.  The unit of local

16
government shall be responsible for timely collection and 
17
transmission of
dependent premiums.
18
    The Director shall annually determine monthly rates of 
19
payment, subject
to the following constraints:
20
        (1) In the first year of coverage, the rates shall be 
21
    equal to the
amount normally charged to State employees for 
22
    elected optional coverages
or for enrolled dependents 
23
    coverages or other contributory coverages, or
contributed 
24
    by the State for basic insurance coverages on behalf of its

25
    employees, adjusted for differences between State 
26
    employees and employees
of the local government in age, 
 


 






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1
    sex, geographic location or other relevant
demographic 
2
    variables, plus an amount sufficient to pay for the 
3
    additional
administrative costs of providing coverage to 
4
    employees of the unit of
local government and their 
5
    dependents.
6
        (2) In subsequent years, a further adjustment shall be 
7
    made to reflect
the actual prior years' claims experience 
8
    of the employees of the unit of
local government.
9
    In the case of coverage of local government employees under 
10
a health
maintenance organization, the Director shall annually 
11
determine for each
participating unit of local government the 
12
maximum monthly amount the unit
may contribute toward that 
13
coverage, based on an analysis of (i) the age,
sex, geographic 
14
location, and other relevant demographic variables of the

15
unit's employees and (ii) the cost to cover those employees 
16
under the State
group health benefits plan.  The Director may 
17
similarly determine the
maximum monthly amount each unit of 
18
local government may contribute toward
coverage of its 
19
employees' dependents under a health maintenance organization.
20
    Monthly payments by the unit of local government or its 
21
employees for
group health benefits plan or health maintenance 
22
organization coverage shall
be deposited in the Local 
23
Government Health Insurance Reserve Fund.
24
    The Local Government Health Insurance Reserve Fund is 
25
hereby created as a nonappropriated trust fund to be held 
26
outside the State Treasury, with the State Treasurer as 
 


 






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1
custodian. The Local Government Health Insurance Reserve Fund 
2
shall be a continuing
fund not subject to fiscal year 
3
limitations.  All revenues arising from the administration of 
4
the health benefits program established under this Section 
5
shall be deposited into the Local Government Health Insurance 
6
Reserve Fund. Any interest earned on moneys in the Local 
7
Government Health Insurance Reserve Fund shall be deposited 
8
into the Fund. All expenditures from this Fund
shall be used 
9
for payments for health care benefits for local government and 
10
rehabilitation facility
employees, annuitants, and dependents, 
11
and to reimburse the Department or
its administrative service 
12
organization for all expenses incurred in the
administration of 
13
benefits.  No other State funds may be used for these
purposes.
14
    A local government employer's participation or desire to 
15
participate
in a program created under this subsection shall 
16
not limit that employer's
duty to bargain with the 
17
representative of any collective bargaining unit
of its 
18
employees.
19
    (j) Any rehabilitation facility within the State of 
20
Illinois may apply
to the Director to have its employees, 
21
annuitants, and their eligible
dependents provided group 
22
health coverage under this Act on a non-insured
basis. To 
23
participate, a rehabilitation facility must agree to enroll all

24
of its employees and remit the entire cost of providing such 
25
coverage for
its employees, except that the rehabilitation 
26
facility shall not be
required to enroll those of its employees 
 


 






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1
who are covered spouses or
dependents under this plan or 
2
another group policy or plan providing health
benefits as long 
3
as (1) an appropriate official from the rehabilitation
facility 
4
attests that each employee not enrolled is a covered spouse or

5
dependent under this plan or another group policy or plan, and 
6
(2) at least
50% of the employees are enrolled and the 
7
rehabilitation facility remits
the entire cost of providing 
8
coverage to those employees.  Employees of a
participating 
9
rehabilitation facility who are not enrolled due to coverage

10
under another group health policy or plan may enroll
in the 
11
event of a qualifying change in status, special enrollment, 
12
special
circumstance as defined by the Director, or during the 
13
annual Benefit Choice
Period.  A participating rehabilitation 
14
facility may also elect
to cover its annuitants. Dependent 
15
coverage shall be offered on an optional
basis, with the costs 
16
paid by the rehabilitation facility, its employees, or
some 
17
combination of the 2 as determined by the rehabilitation 
18
facility. The
rehabilitation facility shall be responsible for 
19
timely collection and
transmission of dependent premiums.
20
    The Director shall annually determine quarterly rates of 
21
payment, subject
to the following constraints:
22
        (1) In the first year of coverage, the rates shall be 
23
    equal to the amount
normally charged to State employees for 
24
    elected optional coverages or for
enrolled dependents 
25
    coverages or other contributory coverages on behalf of
its 
26
    employees, adjusted for differences between State 
 


 






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


 






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1
domestic violence shelter remits the entire cost of providing 
2
coverage to those employees.  Employees of a participating 
3
domestic violence shelter who are not enrolled due to coverage 
4
under another group health policy or plan may enroll in the 
5
event of a qualifying change in status, special enrollment, or 
6
special circumstance as defined by the Director or during the 
7
annual Benefit Choice Period. A participating domestic 
8
violence shelter may also elect
to cover its annuitants.  
9
Dependent coverage shall be offered on an optional
basis, with

10
employees, or some combination of the 2 as determined by the 
11
domestic violence
shelter or service.  The domestic violence 
12
shelter or service shall be
responsible for timely collection 
13
and transmission of dependent premiums.
14
    The Director shall annually determine rates of payment,

15
subject to the following constraints:
16
        (1) In the first year of coverage, the rates shall be 
17
    equal to the
amount normally charged to State employees for 
18
    elected optional coverages
or for enrolled dependents 
19
    coverages or other contributory coverages on
behalf of its 
20
    employees, adjusted for differences between State 
21
    employees and
employees of the domestic violence shelter or 
22
    service in age, sex, geographic
location or other relevant 
23
    demographic variables, plus an amount sufficient
to pay for 
24
    the additional administrative costs of providing coverage 
25
    to
employees of the domestic violence shelter or service 
26
    and their dependents.
 


 






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1
        (2) In subsequent years, a further adjustment shall be 
2
    made to reflect
the actual prior years' claims experience 
3
    of the employees of the domestic
violence shelter or 
4
    service.
5
    Monthly payments by the domestic violence shelter or 
6
service or its employees
for group health insurance shall be 
7
deposited in the Local Government Health
Insurance Reserve 
8
Fund.
9
    (l) A public community college or entity organized pursuant 
10
to the
Public Community College Act may apply to the Director 
11
initially to have
only annuitants not covered prior to July 1, 
12
1992 by the district's health
plan provided health coverage 
13
under this Act on a non-insured basis.  The
community college 
14
must execute a 2-year contract to participate in the
Local 
15
Government Health Plan.
Any annuitant may enroll in the event 
16
of a qualifying change in status, special
enrollment, special 
17
circumstance as defined by the Director, or during the
annual 
18
Benefit Choice Period.
19
    The Director shall annually determine monthly rates of 
20
payment subject to
the following constraints:  for those 
21
community colleges with annuitants
only enrolled, first year 
22
rates shall be equal to the average cost to cover
claims for a 
23
State member adjusted for demographics, Medicare

24
participation, and other factors; and in the second year, a 
25
further adjustment
of rates shall be made to reflect the actual 
26
first year's claims experience
of the covered annuitants.
 


 






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1
    (l-5) The provisions of subsection (l) become inoperative 
2
on July 1, 1999.
3
    (m) The Director shall adopt any rules deemed necessary for

4
implementation of this amendatory Act of 1989 (Public Act 
5
86-978).
6
    (n) Any child advocacy center within the State of Illinois 
7
may apply to the Director to have its employees, annuitants, 
8
and their dependents provided group health coverage under this 
9
Act on a non-insured basis. To participate, a child advocacy 
10
center must agree to enroll all of its employees and pay the 
11
entire cost of providing coverage for its employees. The child


12
advocacy center shall not be required to enroll those of its


13
employees who are covered spouses or dependents under this plan


14
or another group policy or plan providing health benefits as


15
long as (1) an appropriate official from the child advocacy


16
center attests that each employee not enrolled is a covered


17
spouse or dependent under this plan or another group policy or


18
plan and (2) at least 50% of the employees are enrolled and the 
19
child advocacy center remits the entire cost of providing 
20
coverage to those employees.  Employees of a participating child 
21
advocacy center who are not enrolled due to coverage under 
22
another group health policy or plan may enroll in the event of 
23
a qualifying change in status, special enrollment, or special 
24
circumstance as defined by the Director or during the annual 
25
Benefit Choice Period. A participating child advocacy center 
26
may also elect to cover its annuitants. Dependent coverage 
 


 






09600SB3660ham008
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1
shall be offered on an optional basis, with the costs paid by 
2
the child advocacy center, its employees, or some combination 
3
of the 2 as determined by the child advocacy center. The child 
4
advocacy center shall be responsible for timely collection and 
5
transmission of dependent premiums.
6
    The Director shall annually determine rates of payment, 
7
subject to the following constraints:
8
        (1) In the first year of coverage, the rates shall be 
9
    equal to the amount normally charged to State employees for 
10
    elected optional coverages or for enrolled dependents 
11
    coverages or other contributory coverages on behalf of its 
12
    employees, adjusted for differences between State 
13
    employees and employees of the child advocacy center in 
14
    age, sex, geographic location, or other relevant 
15
    demographic variables, plus an amount sufficient to pay for 
16
    the additional administrative costs of providing coverage 
17
    to employees of the child advocacy center and their 
18
    dependents.
19
        (2) In subsequent years, a further adjustment shall be 
20
    made to reflect the actual prior years' claims experience 
21
    of the employees of the child advocacy center.
22
    Monthly payments by the child advocacy center or its 
23
employees for group health insurance shall be deposited into 
24
the Local Government Health Insurance Reserve Fund.
25
(Source: P.A. 95-331, eff. 8-21-07; 95-632, eff. 9-25-07; 
26
95-707, eff. 1-11-08; 96-756, eff. 1-1-10.)".