92nd General Assembly
Summary of HB0521
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House Sponsors:
MAY-DELGADO-GARRETT-FLOWERS-COULSON, FEIGENHOLTZ, FRITCHEY, 
   RYAN, MCCARTHY, MILLER, KURTZ, ACEVEDO, BOLAND, 
   BRUNSVOLD, BUGIELSKI, BURKE, COLLINS, CROTTY, CURRY,JULIE, 
   DAVIS,MONIQUE, FORBY, FOWLER, FRANKS, HAMOS, HANNIG, 
   JONES,LOU, JONES,SHIRLEY, LANG, LYONS,JOSEPH, MCKEON, 
   MULLIGAN, NOVAK, O'BRIEN, SCHOENBERG, SCOTT, SLONE, 
   TURNER,ART AND YOUNGE.

Senate Sponsors:
LINK-JACOBS-OBAMA

Short description: 
STATE EMP INS TO SMALL BUSNESS                                             

Synopsis of Bill as introduced:
        Amends the State Employees Group Health Insurance  Act  of  1971.      
   Provides  that  self-employed  persons  and  small  businesses  may be      
   provided group health coverage under the Act.  Limits small businesses      
   to those with 25 or fewer employees.                                        
          FISCAL NOTE (Department of Central Management Services)              
          The Department estimates there would be approximately 282,000        
          registered small businesses eligible to apply under HB 521.          
          Since all Plan expenses are borne by the participating units,        
          HB 521 would have minimal fiscal impact on the State. However,       
          expenditure authority appropriations for the Local Government        
          Health Insurance Reserve Fund would have to be increased sig-        
          nificantly to cover payments for medical claims and administra-      
          tive costs. Assuming approximately 1%-2% of the eligible small       
          businesses would apply during the first year, the Department         
          estimates first year administrative costs of approximately           
          $600,000, including 7-10 staff. Subsequent fiscal year admini-       
          strative costs would increase with increased participation.          
        HOUSE AMENDMENT NO. 1.                                                 
          Adds reference to:                                                   
          5 ILCS 375/13.2                 from Ch. 127, par. 533.2             
          30 ILCS 105/25                  from Ch. 127, par. 161               
        Provides  that  the  payments  for   insurance   on   behalf   of      
   self-insureds  and  employees  of  qualified small businesses shall be      
   deposited into the  Small  Employers  Health  Insurance  Reserve  Fund      
   rather than the Local Government Health Insurance Reserve Fund.             
        HOUSE AMENDMENT NO. 2.                                                 
        Adds an effective date of January 1, 2003.                             
          STATE MANDATES NOTE, H-AM 1, 2                                       
          (Department of Commerce and Community Affairs)                       
          In the opinion of DCCA, HB 521 (H-am 1, 2) does not create a         
          State mandate under the State Mandates Act.                          
 
Last action on Bill: SESSION SINE DIE

   Last action date: JAN-07-2003

           Location: House

 Amendments to Bill: AMENDMENTS ADOPTED: HOUSE -   2     SENATE -   0


   END OF INQUIRY 



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