Full Text of SB2946 98th General Assembly
SB2946 98TH GENERAL ASSEMBLY |
| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 SB2946 Introduced 2/4/2014, by Sen. Michael W. Frerichs SYNOPSIS AS INTRODUCED: |
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5 ILCS 375/5 | from Ch. 127, par. 525 |
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Amends the State Employees Group Insurance Act of 1971. Makes a technical change in a Section concerning employee benefits.
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| | A BILL FOR |
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| 1 | | AN ACT concerning government.
| 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 1971 | 5 | | is amended by changing Section 5 as follows:
| 6 | | (5 ILCS 375/5) (from Ch. 127, par. 525)
| 7 | | Sec. 5. Employee benefits; declaration of State policy.
The | 8 | | General Assembly declares that that it is the policy of the | 9 | | State and in the best interest of the State to assure quality | 10 | | benefits to members and their dependents under this Act. The | 11 | | implementation of this policy depends upon, among other things, | 12 | | stability and continuity of coverage, care, and services under | 13 | | benefit programs for members and their dependents. | 14 | | Specifically, but without limitation, members should have | 15 | | continued access, on substantially similar terms and | 16 | | conditions, to trusted family health care providers with whom | 17 | | they have developed long-term relationships through a benefit | 18 | | program under this Act. Therefore, the Director must administer | 19 | | this Act consistent with that State policy, but may consider | 20 | | affordability, cost of coverage and care, and competition among | 21 | | health insurers and providers. All contracts for provision of | 22 | | employee benefits, including those portions of any proposed | 23 | | collective bargaining agreement that would require |
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| 1 | | implementation through contracts entered into under this Act, | 2 | | are subject to the following requirements: | 3 | | (i) By April 1 of each year, the Director must report | 4 | | and provide information to the Commission concerning the | 5 | | status of the employee benefits program to be offered for | 6 | | the next fiscal year. Information includes, but is not | 7 | | limited to, documents, reports of negotiations, bid | 8 | | invitations, requests for proposals, specifications, | 9 | | copies of proposed and final contracts or agreements, and | 10 | | any other materials concerning contracts or agreements for | 11 | | the employee benefits program. By the first of each month | 12 | | thereafter, the Director must provide updated, and any new, | 13 | | information to the Commission until the employee benefits | 14 | | program for the next fiscal year is determined. In addition | 15 | | to these monthly reporting requirements, at any time the | 16 | | Commission makes a written request, the Director must | 17 | | promptly, but in no event later than 5 business days after | 18 | | receipt of the request, provide to the Commission any | 19 | | additional requested information in the possession of the | 20 | | Director concerning employee benefits programs. The | 21 | | Commission may waive any of the reporting requirements of | 22 | | this item (i) upon the written request by the Director. Any | 23 | | waiver granted under this item (i) must be in writing. | 24 | | Nothing in this item is intended to abrogate any | 25 | | attorney-client privilege.
| 26 | | (ii) Within 30 days after notice of the awarding or |
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| 1 | | letting of a contract has appeared in the Illinois | 2 | | Procurement Bulletin in accordance with subsection (b) of | 3 | | Section 15-25 of the Illinois Procurement Code, the | 4 | | Commission may request in writing from the Director and the | 5 | | Director shall promptly, but in no event later than 5 | 6 | | business days after receipt of the request, provide to the | 7 | | Commission information in the possession of the Director | 8 | | concerning the proposed contract. Nothing in this item is | 9 | | intended to waive or abrogate any privilege or right of | 10 | | confidentiality authorized by law. | 11 | | (iii) Except as otherwise provided in this item (iii), | 12 | | no contract subject to this Section may be entered into | 13 | | until the 30-day period described in item (ii) has expired, | 14 | | unless the Director requests in writing that the Commission | 15 | | waive the period and the Commission grants the waiver in | 16 | | writing. This item (iii) does not apply to any contract | 17 | | entered into after the effective date of this amendatory | 18 | | Act of the 98th General Assembly and through January 1, | 19 | | 2014 to provide a program of group health benefits for | 20 | | Medicare-primary members and their Medicare-primary | 21 | | dependents that is comparable in stability and continuity | 22 | | of coverage, care, and services to the program of health | 23 | | benefits offered to other members and their dependents | 24 | | under this Act. | 25 | | (iv) If the Director seeks to make any substantive | 26 | | modification to any provision of a proposed contract after |
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| 1 | | it is submitted to the Commission in accordance with item | 2 | | (ii), the modified contract shall be subject to the | 3 | | requirements of items (ii) and (iii) unless the Commission | 4 | | agrees, in writing, to a waiver of those requirements with | 5 | | respect to the modified contract.
| 6 | | (v) By the date of the beginning of the annual benefit | 7 | | choice period, the Director must transmit to the Commission | 8 | | a copy of each final contract or agreement for the employee | 9 | | benefits program to be offered for the next fiscal year. | 10 | | The annual benefit choice period for an employee benefits | 11 | | program must begin on May 1 of the fiscal year preceding | 12 | | the year for which the program is to be offered. If, | 13 | | however, in any such preceding fiscal year collective | 14 | | bargaining over employee benefit programs for the next | 15 | | fiscal year remains pending on April 15, the beginning date | 16 | | of the annual benefit choice period shall be not later than | 17 | | 15 days after ratification of the collective bargaining | 18 | | agreement.
| 19 | | (vi) The Director must provide the reports, | 20 | | information, and contracts required under items (i), (ii), | 21 | | (iv), and (v) by electronic or other means satisfactory to | 22 | | the Commission. Reports, information, and contracts in the | 23 | | possession of the Commission pursuant to items (i), (ii), | 24 | | (iv), and (v) are exempt from disclosure by the Commission | 25 | | and its members and employees under the Freedom of | 26 | | Information Act. Reports, information, and contracts |
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| 1 | | received by the Commission pursuant to items (i), (ii), | 2 | | (iv), and (v) must be kept confidential by and may not be | 3 | | disclosed or used by the Commission or its members or | 4 | | employees if such disclosure or use could compromise the | 5 | | fairness or integrity of the procurement, bidding, or | 6 | | contract process. Commission meetings, or portions of | 7 | | Commission meetings, in which reports, information, and | 8 | | contracts received by the Commission pursuant to items (i), | 9 | | (ii), (iv), and (v) are discussed must be closed if | 10 | | disclosure or use of the report or information could | 11 | | compromise the fairness or integrity of the procurement, | 12 | | bidding, or contract process.
| 13 | | All contracts entered into under this Section are subject | 14 | | to appropriation and shall comply with Section 20-60(b) of the | 15 | | Illinois Procurement Code (30 ILCS 500/20-60(b)).
| 16 | | The Director shall contract or otherwise make available | 17 | | group
life insurance, health benefits and other
employee | 18 | | benefits to eligible members and, where elected,
their eligible | 19 | | dependents. Any contract or, if
applicable, contracts or other | 20 | | arrangement for provision of benefits
shall be on terms | 21 | | consistent with State policy and
based on, but not limited to, | 22 | | such
criteria as administrative cost, service capabilities of | 23 | | the carrier
or other contractor and premiums, fees or charges | 24 | | as related to benefits.
| 25 | | Notwithstanding any other provisions of this Act, by | 26 | | January 1, 2014, the Department of Central Management Services, |
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| 1 | | in consultation with and subject to the approval of the Chief | 2 | | Procurement Officer, shall contract or make otherwise | 3 | | available a program of group health benefits for | 4 | | Medicare-primary members and their Medicare-primary | 5 | | dependents. The Director may procure a single contract or | 6 | | multiple contracts that provide a program of group health | 7 | | benefits that is comparable in stability and continuity of | 8 | | coverage, care, and services to the program of health benefits | 9 | | offered to other members and their dependents under this Act. | 10 | | The initial procurement of a contract or contracts under this | 11 | | paragraph is not subject to the provisions of the Illinois | 12 | | Procurement Code, except for Sections 20-60, 20-65, 20-70, and | 13 | | 20-160 and Article 50 of that Code, provided that the Chief | 14 | | Procurement Officer may, in writing with justification, waive | 15 | | any certification required under Article 50. | 16 | | The Director may prepare and issue specifications
for group | 17 | | life insurance, health benefits, other employee benefits
and | 18 | | administrative services for the purpose of receiving proposals
| 19 | | from interested parties.
| 20 | | The Director is authorized to execute a contract, or
| 21 | | contracts, for the programs of group life insurance, health
| 22 | | benefits, other employee benefits and administrative services
| 23 | | authorized by this Act (including, without limitation, | 24 | | prescription drug benefits). All of the benefits provided under | 25 | | this Act may be
included in one or more contracts, or the | 26 | | benefits may be classified into
different types with each type |
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| 1 | | included under one or more similar contracts
with the same or | 2 | | different companies.
| 3 | | The term of any contract may not extend beyond 5 fiscal | 4 | | years.
Upon recommendation of the Commission, the Director may | 5 | | exercise renewal
options of the same contract for up to a | 6 | | period of 5 years. Any
increases in premiums, fees or charges | 7 | | requested by a contractor whose
contract may be renewed | 8 | | pursuant to a renewal option contained therein,
must be | 9 | | justified on the basis of (1) audited experience data, (2)
| 10 | | increases in the costs of health care services provided under | 11 | | the contract,
(3) contractor performance, (4) increases in | 12 | | contractor responsibilities,
or (5) any combination thereof.
| 13 | | Any contractor shall agree to abide by all
requirements of | 14 | | this Act and Rules and Regulations promulgated and adopted
| 15 | | thereto; to submit such information and data as may from time | 16 | | to time be
deemed necessary by the Director for effective | 17 | | administration of the
provisions of this Act and the programs | 18 | | established
hereunder, and to fully cooperate in any audit.
| 19 | | (Source: P.A. 98-19, eff. 6-10-13.)
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