State of Illinois
92nd General Assembly
Legislation

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92_SB1833

 
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 1        AN ACT concerning health coverage  under  State  employee
 2    programs.

 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 Sections 2, 3, 10, 13.2, and 15
 7    as follows:

 8        (5 ILCS 375/2) (from Ch. 127, par. 522)
 9        Sec. 2. Purpose.  The purpose of this Act is to provide a
10    program of group life insurance, a program of health benefits
11    and other employee benefits for persons in the service of the
12    State of Illinois, employees of local governments,  employees
13    of   rehabilitation  facilities  and  employees  of  domestic
14    violence  shelters  and  services,  and  certain   of   their
15    dependents.   It is also the purpose of this Act to provide a
16    program of health benefits (i) for certain benefit recipients
17    of the Teachers' Retirement System of the State  of  Illinois
18    and  their  dependent  beneficiaries  and  (ii)  for  certain
19    eligible   retired  community  college  employees  and  their
20    dependent beneficiaries.  It is also the purpose of this  Act
21    to  provide  a  program  of  health benefits for employees of
22    qualified not-for-profit agencies and their dependents.
23    (Source: P.A. 89-25, eff. 6-21-95; 90-497, eff. 8-18-97.)

24        (5 ILCS 375/3) (from Ch. 127, par. 523)
25        Sec.  3.  Definitions.   Unless  the  context   otherwise
26    requires, the following words and phrases as used in this Act
27    shall have the following meanings.  The Department may define
28    these  and other words and phrases separately for the purpose
29    of implementing specific programs  providing  benefits  under
30    this Act.
 
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 1        (a)  "Administrative   service  organization"  means  any
 2    person, firm or corporation experienced in  the  handling  of
 3    claims  which  is  fully  qualified,  financially  sound  and
 4    capable  of meeting the service requirements of a contract of
 5    administration executed with the Department.
 6        (b)  "Annuitant" means (1) an employee  who  retires,  or
 7    has  retired,  on  or  after  January 1, 1966 on an immediate
 8    annuity under the provisions of Articles 2, 14, 15 (including
 9    an employee who has retired  under  the  optional  retirement
10    program  established under Section 15-158.2), paragraphs (2),
11    (3), or (5) of Section 16-106, or Article 18 of the  Illinois
12    Pension   Code;  (2)  any  person  who  was  receiving  group
13    insurance coverage under this Act as of  March  31,  1978  by
14    reason of his status as an annuitant, even though the annuity
15    in  relation  to  which  such  coverage  was  provided  is  a
16    proportional annuity based on less than the minimum period of
17    service  required  for  a  retirement  annuity  in the system
18    involved; (3) any person not otherwise covered  by  this  Act
19    who  has retired as a participating member under Article 2 of
20    the  Illinois  Pension  Code  but  is  ineligible   for   the
21    retirement  annuity  under  Section  2-119  of  the  Illinois
22    Pension Code; (4) the spouse of any person who is receiving a
23    retirement  annuity  under Article 18 of the Illinois Pension
24    Code and who  is  covered  under  a  group  health  insurance
25    program  sponsored  by a governmental employer other than the
26    State of Illinois and who has irrevocably  elected  to  waive
27    his  or  her  coverage  under this Act and to have his or her
28    spouse considered as the "annuitant" under this Act  and  not
29    as  a  "dependent";  or  (5)  an employee who retires, or has
30    retired, from a qualified position, as  determined  according
31    to rules promulgated by the Director, under a qualified local
32    government  or  a  qualified  rehabilitation  facility  or  a
33    qualified  domestic  violence  shelter  or service; or (6) an
34    employee who  retires,  or  has  retired,  from  a  qualified
 
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 1    position, as determined according to rules promulgated by the
 2    Director,  with  a  qualified  not-for-profit  agency.   (For
 3    definition of "retired employee", see (p) post).
 4        (b-5)  "New  SERS  annuitant"  means  a person who, on or
 5    after January 1, 1998, becomes an annuitant,  as  defined  in
 6    subsection   (b),   by  virtue  of  beginning  to  receive  a
 7    retirement annuity under Article 14 of the  Illinois  Pension
 8    Code,  and is eligible to participate in the basic program of
 9    group health benefits provided for annuitants under this Act.
10        (b-6)  "New SURS annuitant" means a person who (1) on  or
11    after  January  1,  1998, becomes an annuitant, as defined in
12    subsection  (b),  by  virtue  of  beginning  to   receive   a
13    retirement  annuity  under Article 15 of the Illinois Pension
14    Code, (2) has not made the election authorized under  Section
15    15-135.1 of the Illinois Pension Code, and (3) is eligible to
16    participate  in  the  basic  program of group health benefits
17    provided for annuitants under this Act.
18        (b-7)  "New TRS State annuitant" means a person  who,  on
19    or  after  July  1, 1998, becomes an annuitant, as defined in
20    subsection  (b),  by  virtue  of  beginning  to   receive   a
21    retirement  annuity  under Article 16 of the Illinois Pension
22    Code based on service as a teacher as  defined  in  paragraph
23    (2),  (3),  or  (5)  of  Section  16-106 of that Code, and is
24    eligible to participate in the basic program of group  health
25    benefits provided for annuitants under this Act.
26        (c)  "Carrier"   means   (1)   an  insurance  company,  a
27    corporation  organized  under  the  Limited  Health   Service
28    Organization Act or the Voluntary Health Services Plan Act, a
29    partnership,  or other nongovernmental organization, which is
30    authorized  to  do  group  life  or  group  health  insurance
31    business in Illinois, or (2)  the  State  of  Illinois  as  a
32    self-insurer.
33        (d)  "Compensation"  means  salary  or wages payable on a
34    regular payroll by the State Treasurer on a  warrant  of  the
 
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 1    State Comptroller out of any State, trust or federal fund, or
 2    by  the Governor of the State through a disbursing officer of
 3    the State out of a trust or out of federal funds, or  by  any
 4    Department  out  of State, trust, federal or other funds held
 5    by the State Treasurer or the Department, to any  person  for
 6    personal   services  currently  performed,  and  ordinary  or
 7    accidental disability  benefits  under  Articles  2,  14,  15
 8    (including  ordinary  or accidental disability benefits under
 9    the optional retirement  program  established  under  Section
10    15-158.2),  paragraphs (2), (3), or (5) of Section 16-106, or
11    Article 18 of  the  Illinois  Pension  Code,  for  disability
12    incurred after January 1, 1966, or benefits payable under the
13    Workers'   Compensation   or  Occupational  Diseases  Act  or
14    benefits  payable  under  a  sick  pay  plan  established  in
15    accordance  with  Section  36  of  the  State  Finance   Act.
16    "Compensation" also means salary or wages paid to an employee
17    of any qualified local government or qualified rehabilitation
18    facility or a qualified domestic violence shelter or service.
19    "Compensation" also means salary or wages paid to an employee
20    of a qualified not-for-profit agency.
21        (e)  "Commission"   means   the   State  Employees  Group
22    Insurance  Advisory  Commission  authorized  by   this   Act.
23    Commencing  July  1,  1984,  "Commission" as used in this Act
24    means  the  Illinois  Economic  and  Fiscal   Commission   as
25    established  by the Legislative Commission Reorganization Act
26    of 1984.
27        (f)  "Contributory", when  referred  to  as  contributory
28    coverage,  shall  mean optional coverages or benefits elected
29    by the member toward the cost  of  which  such  member  makes
30    contribution, or which are funded in whole or in part through
31    the acceptance of a reduction in earnings or the foregoing of
32    an increase in earnings by an employee, as distinguished from
33    noncontributory  coverage or benefits which are paid entirely
34    by the State of Illinois without reduction  of  the  member's
 
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 1    salary.
 2        (g)  "Department"   means  any  department,  institution,
 3    board, commission, officer, court or any agency of the  State
 4    government  receiving  appropriations  and  having  power  to
 5    certify  payrolls  to the Comptroller authorizing payments of
 6    salary and wages against such appropriations as are  made  by
 7    the  General  Assembly  from any State fund, or against trust
 8    funds held by the State  Treasurer  and  includes  boards  of
 9    trustees of the retirement systems created by Articles 2, 14,
10    15,  16  and  18  of the Illinois Pension Code.  "Department"
11    also includes the  Illinois  Comprehensive  Health  Insurance
12    Board,  the Board of Examiners established under the Illinois
13    Public Accounting Act, and the Illinois Rural Bond Bank.
14        (h)  "Dependent", when the term is used in the context of
15    the health and life plan, means a  member's  spouse  and  any
16    unmarried child (1) from birth to age 19 including an adopted
17    child, a child who lives with the member from the time of the
18    filing  of a petition for adoption until entry of an order of
19    adoption, a stepchild or recognized child who lives with  the
20    member  in  a parent-child relationship, or a child who lives
21    with the member if such member is a court appointed  guardian
22    of  the  child,  or  (2) age 19 to 23 enrolled as a full-time
23    student in any accredited school, financially dependent  upon
24    the  member,  and  eligible  to be claimed as a dependent for
25    income tax purposes, or (3) age 19 or over who is mentally or
26    physically handicapped. For the health plan  only,  the  term
27    "dependent"  also  includes  any person enrolled prior to the
28    effective date of this Section  who  is  dependent  upon  the
29    member to the extent that the member may claim such person as
30    a  dependent for income tax deduction purposes; no other such
31    person may be enrolled. For the health plan  only,  the  term
32    "dependent"  also  includes any person who has received after
33    June 30, 2000 an organ  transplant  and  who  is  financially
34    dependent  upon  the  member  and eligible to be claimed as a
 
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 1    dependent for income tax purposes.
 2        (i)  "Director"  means  the  Director  of  the   Illinois
 3    Department of Central Management Services.
 4        (j)  "Eligibility  period"  means  the  period  of time a
 5    member has to elect  enrollment  in  programs  or  to  select
 6    benefits without regard to age, sex or health.
 7        (k)  "Employee"   means  and  includes  each  officer  or
 8    employee in the service of a department who (1) receives  his
 9    compensation  for  service  rendered  to  the department on a
10    warrant  issued  pursuant  to  a  payroll  certified   by   a
11    department  or  on  a  warrant or check issued and drawn by a
12    department upon a trust,  federal  or  other  fund  or  on  a
13    warrant  issued pursuant to a payroll certified by an elected
14    or duly appointed  officer  of  the  State  or  who  receives
15    payment  of the performance of personal services on a warrant
16    issued pursuant to a payroll certified by  a  Department  and
17    drawn  by  the  Comptroller  upon the State Treasurer against
18    appropriations made by the General Assembly from any fund  or
19    against  trust  funds held by the State Treasurer, and (2) is
20    employed  full-time  or  part-time  in  a  position  normally
21    requiring actual performance of duty during not less than 1/2
22    of a normal work period, as established by  the  Director  in
23    cooperation with each department, except that persons elected
24    by  popular  vote  will  be  considered  employees during the
25    entire term for which they are elected  regardless  of  hours
26    devoted  to  the  service  of  the State, and (3) except that
27    "employee" does not include any person who is not eligible by
28    reason of such person's employment to participate in  one  of
29    the State retirement systems under Articles 2, 14, 15 (either
30    the  regular  Article  15  system  or the optional retirement
31    program established under Section 15-158.2) or 18,  or  under
32    paragraph (2), (3), or (5) of Section 16-106, of the Illinois
33    Pension  Code,  but  such  term  does include persons who are
34    employed during the 6 month qualifying period  under  Article
 
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 1    14 of the Illinois Pension Code.  Such term also includes any
 2    person  who  (1) after January 1, 1966, is receiving ordinary
 3    or accidental disability benefits under Articles  2,  14,  15
 4    (including  ordinary  or accidental disability benefits under
 5    the optional retirement  program  established  under  Section
 6    15-158.2),  paragraphs (2), (3), or (5) of Section 16-106, or
 7    Article 18 of  the  Illinois  Pension  Code,  for  disability
 8    incurred  after January 1, 1966, (2) receives total permanent
 9    or total temporary disability under the Workers' Compensation
10    Act or Occupational Disease  Act  as  a  result  of  injuries
11    sustained  or  illness contracted in the course of employment
12    with the State of Illinois, or (3) is not  otherwise  covered
13    under  this  Act  and  has  retired as a participating member
14    under  Article  2  of  the  Illinois  Pension  Code  but   is
15    ineligible  for the retirement annuity under Section 2-119 of
16    the Illinois Pension Code.  However, a person  who  satisfies
17    the criteria of the foregoing definition of "employee" except
18    that  such  person  is  made ineligible to participate in the
19    State  Universities  Retirement  System  by  clause  (4)   of
20    subsection (a) of Section 15-107 of the Illinois Pension Code
21    is   also  an  "employee"  for  the  purposes  of  this  Act.
22    "Employee" also includes any person receiving or eligible for
23    benefits under a sick pay plan established in accordance with
24    Section 36 of the State Finance Act. "Employee" also includes
25    each officer or employee in the service of a qualified  local
26    government,   including  persons  appointed  as  trustees  of
27    sanitary districts regardless of hours devoted to the service
28    of the sanitary district, and each employee in the service of
29    a  qualified  rehabilitation  facility  and  each   full-time
30    employee  in  the  service  of  a qualified domestic violence
31    shelter  or  service,  as  determined  according   to   rules
32    promulgated  by  the  Director.   "Employee"  also includes a
33    full-time  employee   in   the   service   of   a   qualified
34    not-for-profit  agency,  as  determined  according  to  rules
 
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 1    promulgated by the Director.
 2        (l)  "Member"   means  an  employee,  annuitant,  retired
 3    employee or survivor.
 4        (m)  "Optional  coverages  or   benefits"   means   those
 5    coverages  or  benefits available to the member on his or her
 6    voluntary election, and at his or her own expense.
 7        (n)  "Program" means the  group  life  insurance,  health
 8    benefits  and other employee benefits designed and contracted
 9    for by the Director under this Act.
10        (o)  "Health  plan"  means  a  health  benefits   program
11    offered by the State of Illinois for persons eligible for the
12    plan.
13        (p)  "Retired  employee" means any person who would be an
14    annuitant as that term is defined herein  but  for  the  fact
15    that such person retired prior to January 1, 1966.  Such term
16    also  includes any person formerly employed by the University
17    of Illinois in the Cooperative Extension Service who would be
18    an annuitant but for the  fact  that  such  person  was  made
19    ineligible   to   participate   in   the  State  Universities
20    Retirement System by clause (4) of subsection (a) of  Section
21    15-107 of the Illinois Pension Code.
22        (q)  "Survivor"  means a person receiving an annuity as a
23    survivor of an employee or of an annuitant.  "Survivor"  also
24    includes:  (1)  the  surviving  dependent  of  a  person  who
25    satisfies  the  definition  of  "employee"  except  that such
26    person  is  made  ineligible  to  participate  in  the  State
27    Universities Retirement System by clause  (4)  of  subsection
28    (a)  of  Section 15-107 of the Illinois Pension Code; and (2)
29    the surviving dependent of any person  formerly  employed  by
30    the  University  of  Illinois  in  the  Cooperative Extension
31    Service who would be an annuitant except for  the  fact  that
32    such  person  was made ineligible to participate in the State
33    Universities Retirement System by clause  (4)  of  subsection
34    (a) of Section 15-107 of the Illinois Pension Code.
 
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 1        (q-5)  "New  SERS  survivor" means a survivor, as defined
 2    in subsection (q), whose annuity is paid under Article 14  of
 3    the Illinois Pension Code and is based on the death of (i) an
 4    employee  whose  death occurs on or after January 1, 1998, or
 5    (ii) a new SERS annuitant as defined in subsection (b-5).
 6        (q-6)  "New SURS survivor" means a survivor,  as  defined
 7    in  subsection (q), whose annuity is paid under Article 15 of
 8    the Illinois Pension Code and is based on the death of (i) an
 9    employee whose death occurs on or after January 1,  1998,  or
10    (ii) a new SURS annuitant as defined in subsection (b-6).
11        (q-7)  "New  TRS  State  survivor"  means  a survivor, as
12    defined in  subsection  (q),  whose  annuity  is  paid  under
13    Article  16  of the Illinois Pension Code and is based on the
14    death of (i) an employee who  is  a  teacher  as  defined  in
15    paragraph (2), (3), or (5) of Section 16-106 of that Code and
16    whose  death  occurs  on or after July 1, 1998, or (ii) a new
17    TRS State annuitant as defined in subsection (b-7).
18        (r)  "Medical  services"  means  the  services   provided
19    within  the  scope  of their licenses by practitioners in all
20    categories licensed under the Medical Practice Act of 1987.
21        (s)  "Unit  of  local  government"  means   any   county,
22    municipality,   township,   school   district   (including  a
23    combination of school districts under  the  Intergovernmental
24    Cooperation  Act), special district or other unit, designated
25    as a unit of local government by law, which exercises limited
26    governmental  powers  or  powers  in   respect   to   limited
27    governmental  subjects, any not-for-profit association with a
28    membership that primarily  includes  townships  and  township
29    officials, that has duties that include provision of research
30    service, dissemination of information, and other acts for the
31    purpose  of improving township government, and that is funded
32    wholly or partly in accordance  with  Section  85-15  of  the
33    Township Code; any not-for-profit corporation or association,
34    with  a  membership  consisting  primarily of municipalities,
 
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 1    that operates its own utility system, and provides  research,
 2    training,  dissemination  of  information,  or  other acts to
 3    promote cooperation between  and  among  municipalities  that
 4    provide utility services and for the advancement of the goals
 5    and   purposes  of  its  membership;  the  Southern  Illinois
 6    Collegiate Common Market, which is  a  consortium  of  higher
 7    education institutions in Southern Illinois; and the Illinois
 8    Association  of Park Districts.  "Qualified local government"
 9    means a unit of local government approved by the Director and
10    participating in a program created under  subsection  (i)  of
11    Section 10 of this Act.
12        (t)  "Qualified   rehabilitation   facility"   means  any
13    not-for-profit  organization  that  is  accredited   by   the
14    Commission  on  Accreditation of Rehabilitation Facilities or
15    certified by the Department of Human Services  (as  successor
16    to   the   Department  of  Mental  Health  and  Developmental
17    Disabilities)   to   provide   services   to   persons   with
18    disabilities and which  receives  funds  from  the  State  of
19    Illinois  for  providing  those  services,  approved  by  the
20    Director   and  participating  in  a  program  created  under
21    subsection (j) of Section 10 of this Act.
22        (u)  "Qualified domestic  violence  shelter  or  service"
23    means  any  Illinois domestic violence shelter or service and
24    its administrative offices funded by the Department of  Human
25    Services  (as  successor to the Illinois Department of Public
26    Aid), approved by the Director and participating in a program
27    created under subsection (k) of Section 10.
28        (v)  "TRS benefit recipient" means a person who:
29             (1)  is not a "member" as defined in  this  Section;
30        and
31             (2)  is  receiving  a  monthly benefit or retirement
32        annuity under Article 16 of the  Illinois  Pension  Code;
33        and
34             (3)  either  (i)  has at least 8 years of creditable
 
                            -11-               LRB9215872JSpc
 1        service under Article 16 of the Illinois Pension Code, or
 2        (ii) was enrolled in the health insurance program offered
 3        under that Article on January 1, 1996, or  (iii)  is  the
 4        survivor  of a benefit recipient who had at least 8 years
 5        of creditable service under Article 16  of  the  Illinois
 6        Pension  Code  or  was  enrolled  in the health insurance
 7        program offered under that Article on the effective  date
 8        of this amendatory Act of 1995, or (iv) is a recipient or
 9        survivor  of  a  recipient  of a disability benefit under
10        Article 16 of the Illinois Pension Code.
11        (w)  "TRS dependent beneficiary" means a person who:
12             (1)  is not a "member" or "dependent" as defined  in
13        this Section; and
14             (2)  is  a  TRS benefit recipient's: (A) spouse, (B)
15        dependent parent who is receiving at least half of his or
16        her support  from  the  TRS  benefit  recipient,  or  (C)
17        unmarried  natural  or adopted child who is (i) under age
18        19, or  (ii)  enrolled  as  a  full-time  student  in  an
19        accredited  school,  financially  dependent  upon the TRS
20        benefit recipient, eligible to be claimed as a  dependent
21        for  income  tax  purposes, and either is under age 24 or
22        was, on January 1, 1996,  participating  as  a  dependent
23        beneficiary in the health insurance program offered under
24        Article  16 of the Illinois Pension Code, or (iii) age 19
25        or over who is mentally or physically handicapped.
26        (x)  "Military leave with pay  and  benefits"  refers  to
27    individuals  in basic training for reserves, special/advanced
28    training, annual training, emergency call up,  or  activation
29    by  the  President of the United States with approved pay and
30    benefits.
31        (y)  "Military leave without pay and benefits" refers  to
32    individuals who enlist for active duty in a regular component
33    of  the  U.S.  Armed  Forces  or  other duty not specified or
34    authorized under military leave with pay and benefits.
 
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 1        (z)  "Community college benefit recipient" means a person
 2    who:
 3             (1)  is not a "member" as defined in  this  Section;
 4        and
 5             (2)  is  receiving  a  monthly survivor's annuity or
 6        retirement annuity  under  Article  15  of  the  Illinois
 7        Pension Code; and
 8             (3)  either  (i)  was  a  full-time  employee  of  a
 9        community college district or an association of community
10        college boards created under the Public Community College
11        Act  (other  than  an  employee whose last employer under
12        Article 15 of the Illinois Pension Code was  a  community
13        college  district  subject  to  Article VII of the Public
14        Community College Act) and was eligible to participate in
15        a group health benefit plan as  an  employee  during  the
16        time  of  employment  with  a  community college district
17        (other than  a  community  college  district  subject  to
18        Article  VII  of  the Public Community College Act) or an
19        association of community college boards, or (ii)  is  the
20        survivor of a person described in item (i).
21        (aa)  "Community  college  dependent beneficiary" means a
22    person who:
23             (1)  is not a "member" or "dependent" as defined  in
24        this Section; and
25             (2)  is a community college benefit recipient's: (A)
26        spouse,  (B)  dependent  parent who is receiving at least
27        half of his or her support  from  the  community  college
28        benefit  recipient,  or  (C) unmarried natural or adopted
29        child who is (i) under age 19,  or  (ii)  enrolled  as  a
30        full-time  student  in  an accredited school, financially
31        dependent upon the community college  benefit  recipient,
32        eligible  to  be  claimed  as  a dependent for income tax
33        purposes and under age 23, or (iii) age 19  or  over  and
34        mentally or physically handicapped.
 
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 1        (bb)  "Qualified  not-for-profit  agency" means a private
 2    not-for-profit agency situated in Illinois and designated  by
 3    the   Governor  to  administer  the  federal  Protection  and
 4    Advocacy System for people  with  disabilities  in  Illinois,
 5    approved  by  the  Director  and  participating  in a program
 6    created under subsection (k-5) of Section 10.
 7    (Source: P.A. 91-390, eff.  7-30-99;  91-395,  eff.  7-30-99;
 8    91-617,  eff.  8-19-99;  92-16,  eff.  6-28-01;  92-186, eff.
 9    1-1-02; 92-204, eff. 8-1-01; revised 9-19-01.)

10        (5 ILCS 375/10) (from Ch. 127, par. 530)
11        Sec. 10. Payments by State; premiums.
12        (a)  The   State   shall   pay   the   cost   of    basic
13    non-contributory  group life insurance and, subject to member
14    paid contributions set by the Department or required by  this
15    Section,  the  basic program of group health benefits on each
16    eligible member, except a member, not  otherwise  covered  by
17    this  Act,  who  has  retired as a participating member under
18    Article 2 of the Illinois Pension Code but is ineligible  for
19    the  retirement  annuity  under Section 2-119 of the Illinois
20    Pension Code, and part of each eligible member's and  retired
21    member's  premiums for health insurance coverage for enrolled
22    dependents as provided by Section 9.  The State shall pay the
23    cost of the basic program of group health benefits only after
24    benefits are reduced by the amount  of  benefits  covered  by
25    Medicare  for all members and dependents who are eligible for
26    benefits under Social Security  or  the  Railroad  Retirement
27    system  or  who  had  sufficient  Medicare-covered government
28    employment, except that  such  reduction  in  benefits  shall
29    apply  only  to  those  members  and dependents who (1) first
30    become eligible for such Medicare coverage on or  after  July
31    1,  1992;  or (2) are Medicare-eligible members or dependents
32    of a local government unit which began participation  in  the
33    program on or after July 1, 1992; or (3) remain eligible for,
 
                            -14-               LRB9215872JSpc
 1    but  no  longer receive Medicare coverage which they had been
 2    receiving on or  after  July  1,  1992.  The  Department  may
 3    determine  the aggregate level of the State's contribution on
 4    the basis of actual cost of  medical  services  adjusted  for
 5    age,  sex  or geographic or other demographic characteristics
 6    which affect the costs of such programs.
 7        The cost of participation in the basic program  of  group
 8    health  benefits for the dependent or survivor of a living or
 9    deceased retired employee who was formerly  employed  by  the
10    University  of  Illinois in the Cooperative Extension Service
11    and would be an annuitant but for the fact that he or she was
12    made ineligible to  participate  in  the  State  Universities
13    Retirement  System by clause (4) of subsection (a) of Section
14    15-107 of the Illinois Pension Code shall not be greater than
15    the cost of participation that would otherwise apply to  that
16    dependent  or  survivor  if  he  or she were the dependent or
17    survivor  of  an  annuitant  under  the  State   Universities
18    Retirement System.
19        (a-1)  Beginning  January  1,  1998,  for each person who
20    becomes a new SERS annuitant and participates  in  the  basic
21    program  of group health benefits, the State shall contribute
22    toward the cost of the annuitant's coverage under  the  basic
23    program  of  group  health  benefits an amount equal to 5% of
24    that cost for each full year of creditable service upon which
25    the annuitant's retirement annuity is based, up to a  maximum
26    of  100% for an annuitant with 20 or more years of creditable
27    service. The remainder of the cost of a new SERS  annuitant's
28    coverage  under  the  basic  program of group health benefits
29    shall be the responsibility of the annuitant.
30        (a-2)  Beginning January 1, 1998,  for  each  person  who
31    becomes  a  new  SERS  survivor and participates in the basic
32    program of group health benefits, the State shall  contribute
33    toward  the  cost  of the survivor's coverage under the basic
34    program of group health benefits an amount  equal  to  5%  of
 
                            -15-               LRB9215872JSpc
 1    that  cost  for  each full year of the deceased employee's or
 2    deceased  annuitant's  creditable  service   in   the   State
 3    Employees'  Retirement  System  of  Illinois  on  the date of
 4    death, up to a maximum of 100% for a survivor of an  employee
 5    or  annuitant  with  20  or more years of creditable service.
 6    The remainder of the cost of the new SERS survivor's coverage
 7    under the basic program of group health benefits shall be the
 8    responsibility of the survivor.
 9        (a-3)  Beginning January 1, 1998,  for  each  person  who
10    becomes  a  new  SURS annuitant and participates in the basic
11    program of group health benefits, the State shall  contribute
12    toward  the  cost of the annuitant's coverage under the basic
13    program of group health benefits an amount  equal  to  5%  of
14    that cost for each full year of creditable service upon which
15    the  annuitant's retirement annuity is based, up to a maximum
16    of 100% for an annuitant with 20 or more years of  creditable
17    service.  The remainder of the cost of a new SURS annuitant's
18    coverage under the basic program  of  group  health  benefits
19    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
26    that cost for each full year of the  deceased  employee's  or
27    deceased   annuitant's   creditable   service  in  the  State
28    Universities Retirement System on the date of death, up to  a
29    maximum  of  100%  for a survivor of an employee or annuitant
30    with 20 or more years of creditable service.   The  remainder
31    of  the  cost  of  the new SURS survivor's coverage under the
32    basic  program  of  group  health  benefits  shall   be   the
33    responsibility of the survivor.
34        (a-6)  Beginning  July  1,  1998,  for  each  person  who
 
                            -16-               LRB9215872JSpc
 1    becomes  a  new  TRS  State annuitant and participates in the
 2    basic program of  group  health  benefits,  the  State  shall
 3    contribute  toward the cost of the annuitant's coverage under
 4    the basic program of group health benefits an amount equal to
 5    5% of that cost for each full year of creditable service as a
 6    teacher as defined in paragraph (2), (3), or (5)  of  Section
 7    16-106   of   the   Illinois  Pension  Code  upon  which  the
 8    annuitant's retirement annuity is based, up to a  maximum  of
 9    100%;  except  that the State contribution shall be 12.5% per
10    year (rather than  5%)  for  each  full  year  of  creditable
11    service  as  a  regional superintendent or assistant regional
12    superintendent of schools.  The remainder of the  cost  of  a
13    new TRS State annuitant's coverage under the basic program of
14    group  health  benefits  shall  be  the responsibility of the
15    annuitant.
16        (a-7)  Beginning  July  1,  1998,  for  each  person  who
17    becomes a new TRS State  survivor  and  participates  in  the
18    basic  program  of  group  health  benefits,  the State shall
19    contribute toward the cost of the survivor's  coverage  under
20    the basic program of group health benefits an amount equal to
21    5% of that cost for each full year of the deceased employee's
22    or  deceased  annuitant's  creditable service as a teacher as
23    defined in paragraph (2), (3), or (5) of  Section  16-106  of
24    the  Illinois  Pension  Code  on  the  date of death, up to a
25    maximum of 100%; except that the State contribution shall  be
26    12.5%  per  year  (rather  than 5%) for each full year of the
27    deceased  employee's  or  deceased   annuitant's   creditable
28    service  as  a  regional superintendent or assistant regional
29    superintendent of schools. The remainder of the cost  of  the
30    new  TRS State survivor's coverage under the basic program of
31    group health benefits shall  be  the  responsibility  of  the
32    survivor.
33        (a-8)  A  new SERS annuitant, new SERS survivor, new SURS
34    annuitant, new SURS survivor, new TRS State annuitant, or new
 
                            -17-               LRB9215872JSpc
 1    TRS State survivor may waive or  terminate  coverage  in  the
 2    program  of  group  health  benefits.   Any such annuitant or
 3    survivor who has waived or terminated coverage may enroll  or
 4    re-enroll in the program of group health benefits only during
 5    the  annual  benefit  choice  period,  as  determined  by the
 6    Director; except that in the event of termination of coverage
 7    due to nonpayment of premiums, the annuitant or survivor  may
 8    not re-enroll in the program.
 9        (a-9)  No  later  than  May  1 of each calendar year, the
10    Director of Central  Management  Services  shall  certify  in
11    writing  to  the  Executive Secretary of the State Employees'
12    Retirement System of Illinois the  amounts  of  the  Medicare
13    supplement health care premiums and the amounts of the health
14    care  premiums  for  all  other retirees who are not Medicare
15    eligible.
16        A separate calculation of the  premiums  based  upon  the
17    actual cost of each health care plan shall be so certified.
18        The Director of Central Management Services shall provide
19    to the Executive Secretary of the State Employees' Retirement
20    System  of  Illinois  such information, statistics, and other
21    data as he or she may require to review the  premium  amounts
22    certified by the Director of Central Management Services.
23        (b)  State employees who become eligible for this program
24    on  or  after January 1, 1980 in positions normally requiring
25    actual performance of duty not less than 1/2 of a normal work
26    period but not equal to that of a normal work  period,  shall
27    be  given  the  option  of  participating  in  the  available
28    program.  If  the  employee  elects coverage, the State shall
29    contribute on behalf of such employee  to  the  cost  of  the
30    employee's  benefit  and any applicable dependent supplement,
31    that sum which bears the same percentage as  that  percentage
32    of  time the employee regularly works when compared to normal
33    work period.
34        (c)  The basic non-contributory coverage from  the  basic
 
                            -18-               LRB9215872JSpc
 1    program  of group health benefits shall be continued for each
 2    employee not in pay status or on active service by reason  of
 3    (1) leave of absence due to illness or injury, (2) authorized
 4    educational  leave  of  absence  or  sabbatical leave, or (3)
 5    military leave with pay and  benefits.  This  coverage  shall
 6    continue  until  expiration of authorized leave and return to
 7    active service, but not to exceed 24 months for leaves  under
 8    item (1) or (2). This 24-month limitation and the requirement
 9    of  returning  to  active  service shall not apply to persons
10    receiving  ordinary  or  accidental  disability  benefits  or
11    retirement benefits through the appropriate State  retirement
12    system   or  benefits  under  the  Workers'  Compensation  or
13    Occupational Disease Act.
14        (d)  The  basic  group  life  insurance  coverage   shall
15    continue,  with full State contribution, where such person is
16    (1) absent  from  active  service  by  reason  of  disability
17    arising  from  any  cause  other  than self-inflicted, (2) on
18    authorized educational leave of absence or sabbatical  leave,
19    or (3) on military leave with pay and benefits.
20        (e)  Where  the  person is in non-pay status for a period
21    in excess of 30 days or on leave of absence,  other  than  by
22    reason  of  disability,  educational  or sabbatical leave, or
23    military  leave  with  pay  and  benefits,  such  person  may
24    continue coverage only by making personal  payment  equal  to
25    the amount normally contributed by the State on such person's
26    behalf.  Such  payments  and  coverage  may be continued: (1)
27    until such time as the person returns to  a  status  eligible
28    for  coverage  at State expense, but not to exceed 24 months,
29    (2) until such person's employment or annuitant  status  with
30    the  State  is  terminated,  or (3) for a maximum period of 4
31    years for members on military leave with pay and benefits and
32    military leave without pay and  benefits  (exclusive  of  any
33    additional service imposed pursuant to law).
34        (f)  The  Department  shall  establish by rule the extent
 
                            -19-               LRB9215872JSpc
 1    to which other employee benefits will continue for persons in
 2    non-pay status or who are not in active service.
 3        (g)  The State shall  not  pay  the  cost  of  the  basic
 4    non-contributory  group  life  insurance,  program  of health
 5    benefits and other employee  benefits  for  members  who  are
 6    survivors  as defined by paragraphs (1) and (2) of subsection
 7    (q) of Section 3 of this Act.   The  costs  of  benefits  for
 8    these  survivors  shall  be  paid  by the survivors or by the
 9    University of Illinois Cooperative Extension Service, or  any
10    combination  thereof. However, the State shall pay the amount
11    of the reduction  in  the  cost  of  participation,  if  any,
12    resulting  from  the amendment to subsection (a) made by this
13    amendatory Act of the 91st General Assembly.
14        (h)  Those   persons   occupying   positions   with   any
15    department as a result of emergency appointments pursuant  to
16    Section  8b.8  of  the  Personnel Code who are not considered
17    employees under  this  Act  shall  be  given  the  option  of
18    participating in the programs of group life insurance, health
19    benefits  and other employee benefits.  Such persons electing
20    coverage may participate only by making payment equal to  the
21    amount  normally  contributed  by  the  State  for  similarly
22    situated  employees.  Such amounts shall be determined by the
23    Director.  Such payments and coverage may be continued  until
24    such  time as the person becomes an employee pursuant to this
25    Act or such person's appointment is terminated.
26        (i)  Any unit of local government  within  the  State  of
27    Illinois  may  apply  to  the Director to have its employees,
28    annuitants,  and  their  dependents  provided  group   health
29    coverage   under   this  Act  on  a  non-insured  basis.   To
30    participate, a unit of local government must agree to  enroll
31    all  of  its  employees, who may select coverage under either
32    the State group health benefits plan or a health  maintenance
33    organization  that  has  contracted  with  the  State  to  be
34    available  as a health care provider for employees as defined
 
                            -20-               LRB9215872JSpc
 1    in this Act.  A unit  of  local  government  must  remit  the
 2    entire  cost  of  providing  coverage  under  the State group
 3    health  benefits  plan  or,  for  coverage  under  a   health
 4    maintenance   organization,   an  amount  determined  by  the
 5    Director based on an analysis of  the  sex,  age,  geographic
 6    location,  or  other  relevant  demographic variables for its
 7    employees, except that the unit of local government shall not
 8    be required to enroll those of its employees who are  covered
 9    spouses or dependents under this plan or another group policy
10    or   plan  providing  health  benefits  as  long  as  (1)  an
11    appropriate  official  from  the  unit  of  local  government
12    attests that each employee not enrolled is a  covered  spouse
13    or dependent under this plan or another group policy or plan,
14    and  (2)  at  least 85% of the employees are enrolled and the
15    unit of local government remits the entire cost of  providing
16    coverage  to  those  employees,  except  that a participating
17    school district must  have  enrolled  at  least  85%  of  its
18    full-time  employees  who  have not waived coverage under the
19    district's group health plan by participating in a  component
20    of  the  district's  cafeteria  plan.  A participating school
21    district is not required to enroll a full-time  employee  who
22    has   waived  coverage  under  the  district's  health  plan,
23    provided that an appropriate official from the  participating
24    school  district  attests  that  the  full-time  employee has
25    waived coverage  by  participating  in  a  component  of  the
26    district's   cafeteria   plan.   For  the  purposes  of  this
27    subsection, "participating school district" includes  a  unit
28    of  local  government  whose  primary purpose is education as
29    defined by the Department's rules.
30        Employees of a participating unit of local government who
31    are not enrolled due to coverage under another  group  health
32    policy or plan may enroll in the event of a qualifying change
33    in   status,  special  enrollment,  special  circumstance  as
34    defined by the Director, or during the annual Benefit  Choice
 
                            -21-               LRB9215872JSpc
 1    Period.  A  participating  unit  of local government may also
 2    elect to cover its annuitants.  Dependent coverage  shall  be
 3    offered on an optional basis, with the costs paid by the unit
 4    of  local  government,  its employees, or some combination of
 5    the two as determined by the unit of local  government.   The
 6    unit  of  local  government  shall  be responsible for timely
 7    collection and transmission of dependent premiums.
 8        The Director shall annually determine  monthly  rates  of
 9    payment, subject to the following constraints:
10             (1)  In  the first year of coverage, the rates shall
11        be  equal  to  the  amount  normally  charged  to   State
12        employees  for elected optional coverages or for enrolled
13        dependents coverages or other contributory coverages,  or
14        contributed by the State for basic insurance coverages on
15        behalf of its employees, adjusted for differences between
16        State  employees and employees of the local government in
17        age,  sex,  geographic   location   or   other   relevant
18        demographic  variables,  plus an amount sufficient to pay
19        for the  additional  administrative  costs  of  providing
20        coverage to employees of the unit of local government and
21        their dependents.
22             (2)  In subsequent years, a further adjustment shall
23        be  made  to  reflect  the  actual  prior  years'  claims
24        experience   of  the  employees  of  the  unit  of  local
25        government.
26        In the case of coverage  of  local  government  employees
27    under  a  health maintenance organization, the Director shall
28    annually determine  for  each  participating  unit  of  local
29    government the maximum monthly amount the unit may contribute
30    toward  that  coverage,  based on an analysis of (i) the age,
31    sex, geographic  location,  and  other  relevant  demographic
32    variables  of the unit's employees and (ii) the cost to cover
33    those employees under the State group health  benefits  plan.
34    The  Director  may  similarly  determine  the maximum monthly
 
                            -22-               LRB9215872JSpc
 1    amount each unit of local government  may  contribute  toward
 2    coverage   of   its  employees'  dependents  under  a  health
 3    maintenance organization.
 4        Monthly payments by the unit of local government  or  its
 5    employees   for   group   health   benefits  plan  or  health
 6    maintenance organization coverage shall be deposited  in  the
 7    Local  Government  Health  Insurance Reserve Fund.  The Local
 8    Government  Health  Insurance  Reserve  Fund   shall   be   a
 9    continuing  fund not subject to fiscal year limitations.  All
10    expenditures from this fund shall be used  for  payments  for
11    health  care benefits for local government, domestic violence
12    shelter or service, and  rehabilitation  facility  employees,
13    annuitants,  and  dependents, and to reimburse the Department
14    or its administrative service organization for  all  expenses
15    incurred  in  the administration of benefits.  No other State
16    funds may be used for these purposes.
17        A local government employer's participation or desire  to
18    participate  in a program created under this subsection shall
19    not  limit  that  employer's  duty  to   bargain   with   the
20    representative  of  any  collective  bargaining  unit  of its
21    employees.
22        (j)  Any rehabilitation  facility  within  the  State  of
23    Illinois  may  apply  to  the Director to have its employees,
24    annuitants, and  their  eligible  dependents  provided  group
25    health  coverage  under  this  Act on a non-insured basis. To
26    participate, a rehabilitation facility must agree  to  enroll
27    all  of  its employees and remit the entire cost of providing
28    such  coverage   for   its   employees,   except   that   the
29    rehabilitation facility shall not be required to enroll those
30    of  its employees who are covered spouses or dependents under
31    this plan or another group policy or  plan  providing  health
32    benefits  as  long  as  (1)  an appropriate official from the
33    rehabilitation  facility  attests  that  each  employee   not
34    enrolled  is a covered spouse or dependent under this plan or
 
                            -23-               LRB9215872JSpc
 1    another group policy or plan, and (2) at  least  85%  of  the
 2    employees are enrolled and the rehabilitation facility remits
 3    the  entire  cost  of  providing coverage to those employees.
 4    Employees of a participating rehabilitation facility who  are
 5    not  enrolled  due  to  coverage  under  another group health
 6    policy or plan may enroll in the event of a qualifying change
 7    in  status,  special  enrollment,  special  circumstance   as
 8    defined  by the Director, or during the annual Benefit Choice
 9    Period.  A participating  rehabilitation  facility  may  also
10    elect  to  cover  its annuitants. Dependent coverage shall be
11    offered on an optional basis, with  the  costs  paid  by  the
12    rehabilitation  facility,  its employees, or some combination
13    of the 2 as determined by the  rehabilitation  facility.  The
14    rehabilitation  facility  shall  be  responsible  for  timely
15    collection and transmission of dependent premiums.
16        The  Director shall annually determine quarterly rates of
17    payment, subject to the following constraints:
18             (1)  In the first year of coverage, the rates  shall
19        be   equal  to  the  amount  normally  charged  to  State
20        employees for elected optional coverages or for  enrolled
21        dependents  coverages  or other contributory coverages on
22        behalf of its employees, adjusted for differences between
23        State  employees  and  employees  of  the  rehabilitation
24        facility  in  age,  sex,  geographic  location  or  other
25        relevant demographic variables, plus an amount sufficient
26        to  pay  for  the  additional  administrative  costs   of
27        providing  coverage  to  employees  of the rehabilitation
28        facility and their dependents.
29             (2)  In subsequent years, a further adjustment shall
30        be  made  to  reflect  the  actual  prior  years'  claims
31        experience  of  the  employees  of   the   rehabilitation
32        facility.
33        Monthly  payments  by  the rehabilitation facility or its
34    employees for group health benefits shall be deposited in the
 
                            -24-               LRB9215872JSpc
 1    Local Government Health Insurance Reserve Fund.
 2        (k)  Any domestic violence shelter or service within  the
 3    State  of  Illinois  may  apply  to  the Director to have its
 4    employees, annuitants, and their  dependents  provided  group
 5    health  coverage  under  this Act on a non-insured basis.  To
 6    participate, a domestic  violence  shelter  or  service  must
 7    agree  to enroll all of its employees and pay the entire cost
 8    of  providing   such   coverage   for   its   employees.    A
 9    participating  domestic  violence  shelter  may also elect to
10    cover its annuitants.  Dependent coverage shall be offered on
11    an optional basis,  with  the  costs  paid  by  the  domestic
12    violence   shelter   or   service,  its  employees,  or  some
13    combination of the 2 as determined by the  domestic  violence
14    shelter or service.  The domestic violence shelter or service
15    shall  be  responsible for timely collection and transmission
16    of dependent premiums.
17        The Director shall annually determine rates  of  payment,
18    subject to the following constraints:
19             (1)  In  the first year of coverage, the rates shall
20        be  equal  to  the  amount  normally  charged  to   State
21        employees  for elected optional coverages or for enrolled
22        dependents coverages or other contributory  coverages  on
23        behalf of its employees, adjusted for differences between
24        State  employees  and  employees of the domestic violence
25        shelter or service in age, sex,  geographic  location  or
26        other  relevant  demographic  variables,  plus  an amount
27        sufficient to pay for the additional administrative costs
28        of  providing  coverage  to  employees  of  the  domestic
29        violence shelter or service and their dependents.
30             (2)  In subsequent years, a further adjustment shall
31        be  made  to  reflect  the  actual  prior  years'  claims
32        experience of the  employees  of  the  domestic  violence
33        shelter or service.
34        Monthly  payments  by  the  domestic  violence shelter or
 
                            -25-               LRB9215872JSpc
 1    service or its employees for group health insurance shall  be
 2    deposited  in  the  Local Government Health Insurance Reserve
 3    Fund.
 4        (k-5)  Any qualified  not-for-profit  agency  within  the
 5    State  of  Illinois  may  apply  to  the Director to have its
 6    employees, annuitants, and their  dependents  provided  group
 7    health  coverage  under  this Act on a non-insured basis.  To
 8    participate, a qualified not-for-profit agency must agree  to
 9    enroll  all  of  its  employees  and  pay  the entire cost of
10    providing such coverage for its employees.   A  participating
11    qualified  not-for-profit  agency may also elect to cover its
12    annuitants.   Dependent  coverage  shall  be  offered  on  an
13    optional  basis,  with  the  costs  paid  by  the   qualified
14    not-for-profit  agency, its employees, or some combination of
15    the 2 as determined by the qualified  not-for-profit  agency.
16    The  qualified not-for-profit agency shall be responsible for
17    timely collection and transmission of dependent premiums.
18        The Director shall annually determine rates  of  payment,
19    subject to the following constraints:
20             (1)  In  the first year of coverage, the rates shall
21        be  equal  to  the  amount  normally  charged  to   State
22        employees  for elected optional coverages or for enrolled
23        dependents coverages or other contributory  coverages  on
24        behalf of its employees, adjusted for differences between
25        State   employees   and   employees   of   the  qualified
26        not-for-profit agency in age, sex,  geographic  location,
27        or  other  relevant demographic variables, plus an amount
28        sufficient to pay for the additional administrative costs
29        of providing  coverage  to  employees  of  the  qualified
30        not-for-profit agency and their dependents.
31             (2)  In subsequent years, a further adjustment shall
32        be  made  to  reflect  the  actual  prior  years'  claims
33        experience    of   the   employees   of   the   qualified
34        not-for-profit agency.
 
                            -26-               LRB9215872JSpc
 1        Monthly payments by the qualified  not-for-profit  agency
 2    for  group  health  insurance  shall  be  deposited  into the
 3    Qualified  Not-For-Profit  Agency  Health  Insurance  Reserve
 4    Fund.  The Qualified Not-For-Profit Agency  Health  Insurance
 5    Reserve Fund shall be a continuing fund not subject to fiscal
 6    year  limitations.   All expenditures from this fund shall be
 7    used for payments for health care benefits for  employees  of
 8    qualified  not-for-profit  agencies  and their annuitants and
 9    dependents  and  to   reimburse   the   Department   or   its
10    administrative service organization for all expenses incurred
11    in  the administration of benefits.  No other State funds may
12    be used for these purposes.
13        (l)  A  public  community  college  or  entity  organized
14    pursuant to the Public Community College Act may apply to the
15    Director initially to have only annuitants not covered  prior
16    to July 1, 1992 by the district's health plan provided health
17    coverage   under  this  Act  on  a  non-insured  basis.   The
18    community  college  must  execute  a   2-year   contract   to
19    participate   in   the  Local  Government  Health  Plan.  Any
20    annuitant may enroll in the event of a qualifying  change  in
21    status,  special  enrollment, special circumstance as defined
22    by the Director, or during the annual Benefit Choice Period.
23        The Director shall annually determine  monthly  rates  of
24    payment  subject  to  the  following  constraints:  for those
25    community colleges with annuitants only enrolled, first  year
26    rates  shall be equal to the average cost to cover claims for
27    a  State   member   adjusted   for   demographics,   Medicare
28    participation,  and  other factors; and in the second year, a
29    further adjustment of rates shall  be  made  to  reflect  the
30    actual   first   year's  claims  experience  of  the  covered
31    annuitants.
32        (l-5)  The   provisions   of   subsection   (l)    become
33    inoperative on July 1, 1999.
34        (m)  The  Director shall adopt any rules deemed necessary
 
                            -27-               LRB9215872JSpc
 1    for implementation of this amendatory Act of 1989 (Public Act
 2    86-978).
 3    (Source: P.A. 91-280, eff.  7-23-99;  91-311;  eff.  7-29-99;
 4    91-357,  eff.  7-29-99;  91-390,  eff.  7-30-99; 91-395, eff.
 5    7-30-99; 91-617, eff. 8-19-99; 92-16, eff. 6-28-01.)

 6        (5 ILCS 375/13.2) (from Ch. 127, par. 533.2)
 7        Sec. 13.2.  Insurance reserve  funds;  investments.   All
 8    amounts  held in the Health Insurance Reserve Fund, the Group
 9    Insurance Premium Fund, the Qualified  Not-For-Profit  Agency
10    Health  Insurance  Reserve  Fund,  and  the  Local Government
11    Health Insurance Reserve Fund shall be invested, at interest,
12    by the State Treasurer.  The investments shall be subject  to
13    terms,  conditions,  and  limitations  imposed by the laws of
14    Illinois  on  State  funds.   All  income  derived  from  the
15    investments shall accrue and be deposited to  the  respective
16    funds   no   less  frequently  than  quarterly.   The  Health
17    Insurance Reserve Fund, the Qualified  Not-For-Profit  Agency
18    Health  Insurance  Reserve  Fund,  and  the  Local Government
19    Health Insurance Reserve Fund shall be  administered  by  the
20    Director.
21    (Source: P.A. 91-390, eff. 7-30-99.)

22        (5 ILCS 375/15) (from Ch. 127, par. 535)
23        Sec. 15. Administration; rules; audit; review.
24        (a)  The  Director  shall  administer  this Act and shall
25    prescribe such rules and regulations as are necessary to give
26    full effect to the purposes of this Act.
27        (b)  These rules may fix  reasonable  standards  for  the
28    group  life  and  group  health  programs  and  other benefit
29    programs offered under this  Act,  and  for  the  contractors
30    providing them.
31        (c)  These  rules shall specify that covered and optional
32    medical services of the program are services provided  within
 
                            -28-               LRB9215872JSpc
 1    the   scope   of  their  licenses  by  practitioners  in  all
 2    categories licensed under the Medical Practice  Act  of  1987
 3    and shall provide that all eligible persons be fully informed
 4    of this specification.
 5        (d)  These rules shall establish eligibility requirements
 6    for  members and dependents as may be necessary to supplement
 7    or clarify requirements contained in this Act.
 8        (e)  Each affected department of  the  State,  the  State
 9    Universities  Retirement  System,  the  Teachers'  Retirement
10    System,  and  each qualified local government, rehabilitation
11    facility,  or  domestic  violence  shelter  or  service,   or
12    qualified not-for-profit agency shall keep such records, make
13    such   certifications,   and   furnish   the   Director  such
14    information as may be necessary  for  the  administration  of
15    this  Act,  including information concerning number and total
16    amounts of payroll of employees of  the  department  who  are
17    paid from trust funds or federal funds.
18        (f)  Each   member,   each   community   college  benefit
19    recipient to whom this Act  applies,  and  each  TRS  benefit
20    recipient   to  whom  this  Act  applies  shall  furnish  the
21    Director, in such form as may be  required,  any  information
22    that  may  be  necessary  to  enroll  such  member or benefit
23    recipient and,  if  applicable,  his  or  her  dependents  or
24    dependent beneficiaries under the programs or plan, including
25    such  data  as  may  be  required  to  allow  the Director to
26    accumulate  statistics  on  data   normally   considered   in
27    actuarial  studies  of  employee  groups.   Information about
28    community college benefit recipients  and  community  college
29    dependent  beneficiaries shall be furnished through the State
30    Universities  Retirement  System.   Information   about   TRS
31    benefit  recipients  and TRS dependent beneficiaries shall be
32    furnished through the Teachers' Retirement System.
33        (g)  There shall be audits and reports  on  the  programs
34    authorized  and  established  by  this  Act  prepared  by the
 
                            -29-               LRB9215872JSpc
 1    Director with the  assistance  of  a  qualified,  independent
 2    accounting  firm.   The  reports shall provide information on
 3    the experience, and administrative effectiveness and adequacy
 4    of the program including, when applicable, recommendations on
 5    up-grading of benefits and improvement of the program.
 6        (h)  Any final order,  decision  or  other  determination
 7    made, issued or executed by the Director under the provisions
 8    of  this  Act  whereby  any contractor or person is aggrieved
 9    shall be subject to review in accordance with the  provisions
10    of  the  Administrative  Review  Law  and  all amendments and
11    modifications  thereof,  and  the  rules   adopted   pursuant
12    thereto,  shall  apply  to and govern all proceedings for the
13    judicial review of  final  administrative  decisions  of  the
14    Director.
15    (Source: P.A. 90-497, eff. 8-18-97; 91-390, eff. 7-30-99.)

16        Section 10.  The State Finance Act is amended by changing
17    Section 25 as follows:

18        (30 ILCS 105/25) (from Ch. 127, par. 161)
19        Sec. 25.  Fiscal year limitations.
20        (a)  All    appropriations   shall   be   available   for
21    expenditure for the fiscal year or for a lesser period if the
22    Act making that appropriation so specifies.  A deficiency  or
23    emergency  appropriation  shall  be available for expenditure
24    only through June 30 of the year when  the  Act  making  that
25    appropriation is enacted unless that Act otherwise provides.
26        (b)  Outstanding  liabilities as of June 30, payable from
27    appropriations which have otherwise expired, may be paid  out
28    of  the  expiring  appropriations  during  the 2-month period
29    ending at the close of business on August  31.   Any  service
30    involving  professional  or  artistic  skills or any personal
31    services by an employee  whose  compensation  is  subject  to
32    income tax withholding must be performed as of June 30 of the
 
                            -30-               LRB9215872JSpc
 1    fiscal  year  in  order  to  be  considered  an  "outstanding
 2    liability as of June 30" that is thereby eligible for payment
 3    out of the expiring appropriation.
 4        However,  payment  of  tuition reimbursement claims under
 5    Section 14-7.03 or 18-3 of the School Code may be made by the
 6    State Board of Education from its  appropriations  for  those
 7    respective  purposes  for  any  fiscal  year, even though the
 8    claims reimbursed by the payment may be  claims  attributable
 9    to  a  prior  fiscal  year,  and  payments may be made at the
10    direction of the State Superintendent of Education  from  the
11    fund  from  which the appropriation is made without regard to
12    any fiscal year limitations.
13        Medical  payments  may  be  made  by  the  Department  of
14    Veterans' Affairs from its appropriations for those  purposes
15    for  any  fiscal  year,  without  regard to the fact that the
16    medical services being compensated for by  such  payment  may
17    have been rendered in a prior fiscal year.
18        Medical  payments may be made by the Department of Public
19    Aid and child care payments may be made by the Department  of
20    Human Services (as successor to the Department of Public Aid)
21    from  appropriations  for those purposes for any fiscal year,
22    without regard to the fact that the  medical  or  child  care
23    services  being compensated for by such payment may have been
24    rendered in a prior fiscal year; and payments may be made  at
25    the   direction  of  the  Department  of  Central  Management
26    Services  from  the  Health  Insurance  Reserve   Fund,   the
27    Qualified  Not-For-Profit  Agency  Health  Insurance  Reserve
28    Fund,  and the Local Government Health Insurance Reserve Fund
29    without regard to any fiscal year limitations.
30        Additionally, payments may be made by the  Department  of
31    Human  Services  from  its appropriations, or any other State
32    agency from its  appropriations  with  the  approval  of  the
33    Department of Human Services, from the Immigration Reform and
34    Control   Fund   for  purposes  authorized  pursuant  to  the
 
                            -31-               LRB9215872JSpc
 1    Immigration Reform and Control Act of 1986, without regard to
 2    any fiscal year limitations.
 3        (c)  Further, payments may be made by the  Department  of
 4    Public Health and the Department of Human Services (acting as
 5    successor  to  the  Department  of  Public  Health  under the
 6    Department of  Human  Services  Act)  from  their  respective
 7    appropriations for grants for medical care to or on behalf of
 8    persons   suffering   from  chronic  renal  disease,  persons
 9    suffering from hemophilia, rape victims,  and  premature  and
10    high-mortality  risk infants and their mothers and for grants
11    for supplemental food  supplies  provided  under  the  United
12    States  Department of Agriculture Women, Infants and Children
13    Nutrition Program, for any fiscal year without regard to  the
14    fact  that the services being compensated for by such payment
15    may have been rendered in a prior fiscal year.
16        (d)  The Department of Public Health and  the  Department
17    of  Human  Services (acting as successor to the Department of
18    Public Health under the Department  of  Human  Services  Act)
19    shall  each  annually submit to the State Comptroller, Senate
20    President, Senate Minority  Leader,  Speaker  of  the  House,
21    House  Minority  Leader,  and  the  respective  Chairmen  and
22    Minority  Spokesmen  of  the Appropriations Committees of the
23    Senate and the House, on or before December 31, a  report  of
24    fiscal  year  funds  used to pay for services provided in any
25    prior fiscal year.  This report shall document by program  or
26    service  category  those  expenditures from the most recently
27    completed fiscal year used to pay for  services  provided  in
28    prior fiscal years.
29        (e)  The  Department  of Public Aid and the Department of
30    Human Services (acting as  successor  to  the  Department  of
31    Public   Aid)   shall  each  annually  submit  to  the  State
32    Comptroller,  Senate  President,  Senate   Minority   Leader,
33    Speaker  of  the House, House Minority Leader, the respective
34    Chairmen  and  Minority  Spokesmen  of   the   Appropriations
 
                            -32-               LRB9215872JSpc
 1    Committees of the Senate and the House, on or before November
 2    30,  a  report  that  shall  document  by  program or service
 3    category those expenditures from the most recently  completed
 4    fiscal  year  used  to pay for (i) services provided in prior
 5    fiscal years and (ii) services for which claims were received
 6    in prior fiscal years.
 7        (f)  The Department of Human Services  (as  successor  to
 8    the  Department  of  Public Aid) shall annually submit to the
 9    State Comptroller, Senate President, Senate Minority  Leader,
10    Speaker   of  the  House,  House  Minority  Leader,  and  the
11    respective   Chairmen   and   Minority   Spokesmen   of   the
12    Appropriations Committees of the Senate and the House, on  or
13    before December 31, a report of fiscal year funds used to pay
14    for  services (other than medical care) provided in any prior
15    fiscal year.   This  report  shall  document  by  program  or
16    service  category  those  expenditures from the most recently
17    completed fiscal year used to pay for  services  provided  in
18    prior fiscal years.
19        (g)  In  addition,  each  annual  report  required  to be
20    submitted by the Department of Public  Aid  under  subsection
21    (e)  shall  include the following information with respect to
22    the State's Medicaid program:
23             (1)  Explanations  of  the  exact  causes   of   the
24        variance between the previous year's estimated and actual
25        liabilities.
26             (2)  Factors  affecting  the  Department  of  Public
27        Aid's  liabilities,  including but not limited to numbers
28        of aid recipients, levels of medical service  utilization
29        by  aid  recipients, and inflation in the cost of medical
30        services.
31             (3)  The results  of  the  Department's  efforts  to
32        combat fraud and abuse.
33        (h)  As  provided  in  Section  4 of the General Assembly
34    Compensation Act, any utility bill for service provided to  a
 
                            -33-               LRB9215872JSpc
 1    General  Assembly  member's  district  office  for  a  period
 2    including  portions of 2 consecutive fiscal years may be paid
 3    from funds appropriated for such expenditure in either fiscal
 4    year.
 5        (i)  An agency which administers a fund classified by the
 6    Comptroller as an internal service fund may issue rules for:
 7             (1)  billing  user  agencies  in  advance  based  on
 8        estimated charges for goods or services;
 9             (2)  issuing credits during  the  subsequent  fiscal
10        year  for  all  user  agency payments received during the
11        prior fiscal year which  were  in  excess  of  the  final
12        amounts owed by the user agency for that period; and
13             (3)  issuing  catch-up  billings  to  user  agencies
14        during  the  subsequent fiscal year for amounts remaining
15        due when payments received from the  user  agency  during
16        the  prior  fiscal  year  were less than the total amount
17        owed for that period.
18    User agencies are authorized to  reimburse  internal  service
19    funds  for  catch-up billings by vouchers drawn against their
20    respective appropriations for the fiscal year  in  which  the
21    catch-up billing was issued.
22    (Source:  P.A.  89-235,  eff.  8-4-95;  89-507,  eff. 7-1-97;
23    89-511,  eff.  1-1-97;  90-14,  eff.  7-1-97;  90-168,   eff.
24    7-23-97.)

25        Section  99.  Effective date.  This Act takes effect upon
26    becoming law.

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