State of Illinois
91st General Assembly
Legislation

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91_SB1652

 
                                              LRB9108551SMprA

 1        AN ACT to amend the State Employees Group  Insurance  Act
 2    of 1971 by changing Section 5.

 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:

 5        Section 5.  The State Employees Group  Insurance  Act  of
 6    1971 is amended by changing Section 5 as follows:

 7        (5 ILCS 375/5) (from Ch. 127, par. 525)
 8        Sec.  5.   The  Director shall contract or otherwise make
 9    available group life insurance,  health  benefits  and  other
10    employee  benefits  to   eligible members and, where elected,
11    their eligible dependents.  Any contract or,  if  applicable,
12    contracts  or  other  arrangement  for  provision of benefits
13    shall be on terms deemed by the Director to be  in  the  best
14    interest  of  the State of Illinois and its members based on,
15    but not limited to, such  criteria  as  administrative  cost,
16    service  capabilities  of the carrier or other contractor and
17    premiums, fees or charges as related to benefits.
18        The Director may prepare  and  issue  specifications  for
19    group   life   insurance,  health  benefits,  other  employee
20    benefits and  administrative  services  for  the  purpose  of
21    receiving proposals from interested parties.
22        The  Director  is  authorized  to  execute a contract, or
23    contracts, for the programs of group life  insurance,  health
24    benefits, other employee benefits and administrative services
25    authorized  by  this  Act. All of the benefits provided under
26    this Act may be included in one or  more  contracts,  or  the
27    benefits  may  be  classified  into different types with each
28    type included under one or more similar  contracts  with  the
29    same or different companies.
30        The  term  of  any  contract  may  not extend beyond 10 5
31    fiscal years. Upon  recommendation  of  the  Commission,  the
 
                            -2-               LRB9108551SMprA
 1    Director  may  exercise  renewal options of the same contract
 2    for up to a period of 10 5 years.  Any increases in premiums,
 3    fees or charges requested by a contractor whose contract  may
 4    be  renewed  pursuant  to a renewal option contained therein,
 5    must be justified on the  basis  of  (1)  audited  experience
 6    data,  (2)  increases  in  the  costs of health care services
 7    provided under the contract, (3) contractor performance,  (4)
 8    increases   in   contractor   responsibilities,  or  (5)  any
 9    combination thereof.
10        Any contractor shall agree to abide by  all  requirements
11    of this Act and Rules and Regulations promulgated and adopted
12    thereto; to submit such information and data as may from time
13    to  time  be  deemed  necessary by the Director for effective
14    administration of the provisions of this Act and the programs
15    established hereunder, and to fully cooperate in any audit.
16    (Source: P.A. 91-390, eff. 7-30-99.)

17        Section 99.  Effective date.  This Act takes effect  upon
18    becoming law.

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