Bill Text: IL HB0452 | 2017-2018 | 100th General Assembly | Introduced

---

Bill Title: Amends the State Employees Group Insurance Act of 1971. Provides that, on and after the effective date of the amendatory Act, the State shall not pay or otherwise make contributions toward the costs of any health or life insurance benefits provided under the Act for retired elected officials under the General Assembly Retirement System. Provides that retired elected officials shall pay the entirety of the cost of coverage under the group life insurance program and the program of health benefits under the Act; provides that the cost of coverage shall be determined by the Director. Provides that nothing in the amendatory Act shall be construed to prevent any retired elected official from receiving health or life insurance benefits under the Act, where that retired elected official contributes the entirety of the cost of coverage. Provides that any retired elected official may waive or terminate coverage in the program of health benefits or group life insurance. Further provides that any retired elected official who has waived or terminated coverage may enroll or re-enroll in the program of health benefits or group life insurance only during the annual benefit choice period, as determined by the Director; except that in the event of termination of coverage due to nonpayment of premiums, the retired elected official may not re-enroll in the program. Makes corresponding changes throughout the Act. Defines "retired elected official". Effective immediately.

Spectrum: Slight Partisan Bill (Democrat 6-3)

Status: (Failed) 2019-01-08 - Session Sine Die [HB0452 Detail]

Download: Illinois-2017-HB0452-Introduced.html

---

100TH GENERAL ASSEMBLY State of Illinois 2017 and 2018 HB0452 Introduced , by Rep. Martin J. Moylan SYNOPSIS AS INTRODUCED:
5 ILCS 375/6 from Ch. 127, par. 526
5 ILCS 375/7 from Ch. 127, par. 527
5 ILCS 375/10 from Ch. 127, par. 530
5 ILCS 375/10.5 new
Amends the State Employees Group Insurance Act of 1971. Provides that, on and after the effective date of the amendatory Act, the State shall not pay or otherwise make contributions toward the costs of any health or life insurance benefits provided under the Act for retired elected officials under the General Assembly Retirement System. Provides that retired elected officials shall pay the entirety of the cost of coverage under the group life insurance program and the program of health benefits under the Act; provides that the cost of coverage shall be determined by the Director. Provides that nothing in the amendatory Act shall be construed to prevent any retired elected official from receiving health or life insurance benefits under the Act, where that retired elected official contributes the entirety of the cost of coverage. Provides that any retired elected official may waive or terminate coverage in the program of health benefits or group life insurance. Further provides that any retired elected official who has waived or terminated coverage may enroll or re-enroll in the program of health benefits or group life insurance only during the annual benefit choice period, as determined by the Director; except that in the event of termination of coverage due to nonpayment of premiums, the retired elected official may not re-enroll in the program. Makes corresponding changes throughout the Act. Defines "retired elected official". Effective immediately.
LRB100 04751 RJF 14758 b
FISCAL NOTE ACT MAY APPLY
A BILL FOR
HB0452 LRB100 04751 RJF 14758 b
AN ACT concerning government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The State Employees Group Insurance Act of 1971
is amended by changing Sections 6, 7, and 10 and by adding
Section 10.5 as follows:
(5 ILCS 375/6) (from Ch. 127, par. 526)
Sec. 6. Program of health benefits.
(a) The program of health benefits shall provide for
protection against the financial costs of health care expenses
incurred in and out of hospital including basic
hospital-surgical-medical coverages. The program may include,
but shall not be limited to, such supplemental coverages as
out-patient diagnostic X-ray and laboratory expenses,
prescription drugs, dental services, hearing evaluations,
hearing aids, the dispensing and fitting of hearing aids, and
similar group benefits as are now or may become available.
However, nothing in this Act shall be construed to permit, on
or after July 1, 1980, the non-contributory portion of any such
program to include the expenses of obtaining an abortion,
induced miscarriage or induced premature birth unless, in the
opinion of a physician, such procedures are necessary for the
preservation of the life of the woman seeking such treatment,

HB0452 - 2 - LRB100 04751 RJF 14758 b
or except an induced premature birth intended to produce a live
viable child and such procedure is necessary for the health of
the mother or the unborn child. The program may also include
coverage for those who rely on treatment by prayer or spiritual
means alone for healing in accordance with the tenets and
practice of a recognized religious denomination.
The program of health benefits shall be designed by the
Director (1) to provide a reasonable relationship between the
benefits to be included and the expected distribution of
expenses of each such type to be incurred by the covered
members and dependents, (2) to specify, as covered benefits and
as optional benefits, the medical services of practitioners in
all categories licensed under the Medical Practice Act of 1987,
(3) to include reasonable controls, which may include
deductible and co-insurance provisions, applicable to some or
all of the benefits, or a coordination of benefits provision,
to prevent or minimize unnecessary utilization of the various
hospital, surgical and medical expenses to be provided and to
provide reasonable assurance of stability of the program, and
(4) to provide benefits to the extent possible to members
throughout the State, wherever located, on an equitable basis.
Notwithstanding any other provision of this Section or Act, for
all members or dependents who are eligible for benefits under
Social Security or the Railroad Retirement system or who had
sufficient Medicare-covered government employment, the
Department shall reduce benefits which would otherwise be paid

HB0452 - 3 - LRB100 04751 RJF 14758 b
by Medicare, by the amount of benefits for which the member or
dependents are eligible under Medicare, except that such
reduction in benefits shall apply only to those members or
dependents who (1) first become eligible for such medicare
coverage on or after the effective date of this amendatory Act
of 1992; or (2) are Medicare-eligible members or dependents of
a local government unit which began participation in the
program on or after July 1, 1992; or (3) remain eligible for
but no longer receive Medicare coverage which they had been
receiving on or after the effective date of this amendatory Act
of 1992.
Notwithstanding any other provisions of this Act, where a
covered member or dependents are eligible for benefits under
the federal Medicare health insurance program (Title XVIII of
the Social Security Act as added by Public Law 89-97, 89th
Congress), benefits paid under the State of Illinois program or
plan will be reduced by the amount of benefits paid by
Medicare. For members or dependents who are eligible for
benefits under Social Security or the Railroad Retirement
system or who had sufficient Medicare-covered government
employment, benefits shall be reduced by the amount for which
the member or dependent is eligible under Medicare, except that
such reduction in benefits shall apply only to those members or
dependents who (1) first become eligible for such Medicare
coverage on or after the effective date of this amendatory Act
of 1992; or (2) are Medicare-eligible members or dependents of

HB0452 - 4 - LRB100 04751 RJF 14758 b
a local government unit which began participation in the
program on or after July 1, 1992; or (3) remain eligible for,
but no longer receive Medicare coverage which they had been
receiving on or after the effective date of this amendatory Act
of 1992. Premiums may be adjusted, where applicable, to an
amount deemed by the Director to be reasonably consistent with
any reduction of benefits.
(b) (Blank). A member, not otherwise covered by this Act,
who has retired as a participating member under Article 2 of
the Illinois Pension Code but is ineligible for the retirement
annuity under Section 2-119 of the Illinois Pension Code, shall
pay the premiums for coverage, not exceeding the amount paid by
the State for the non-contributory coverage for other members,
under the group health benefits program under this Act. The
Director shall determine the premiums to be paid by a member
under this subsection (b).
(Source: P.A. 93-47, eff. 7-1-03.)
(5 ILCS 375/7) (from Ch. 127, par. 527)
Sec. 7. Group life insurance program.
(a) The basic noncontributory group life insurance program
shall provide coverage as follows:
(1) employees shall be insured in an amount equal to
the basic annual salary rate, exclusive of overtime, bonus,
or other cumulative additional income factors, raised to
the next round hundred dollar amount if it is not already a

HB0452 - 5 - LRB100 04751 RJF 14758 b
round hundred dollar amount;
(2) annuitants shall be insured in the same manner as
described for active employees, based on the salary in
force immediately before retirement, with coverage
becoming effective on the effective date of retirement
benefits or the first day of the month of application,
whichever occurs later, except that at age 60 the amount of
coverage for the annuitant shall be reduced to $5,000;
(3) survivors whose coverage became effective prior to
September 22, 1979 shall be insured for $2,000;
(4) retired employees shall not be eligible under the
group life insurance program contracted to begin or
continue after June 30, 1973.
(a-5) There shall also be available on an optional basis to
employees, annuitants whose retirement benefits begin within
one year of their receipt of final compensation, and survivors
whose coverage became effective prior to September 22, 1979, a
contributory program of:
(1) supplemental life insurance in an amount not
exceeding 8 times the basic life benefits for active
employees and annuitants under age 60 and not exceeding 4
times the basic life benefits for annuitants age 60 and
over, as described above, except that (a) amounts selected
by employees and annuitants must be in full multiples of
the basic amount, and (b) premiums may be adjusted by age
bracket established in rules supplementing this Act;

HB0452 - 6 - LRB100 04751 RJF 14758 b
beginning July 1, 1981, survivors whose coverage becomes
effective on or after September 22, 1979, shall have the
option of participating in the contributory program of life
insurance in an amount of $5,000 coverage;
(2) accidental death and dismemberment, with the
employee and annuitant having the option of electing an
amount equal to the basic noncontributory life benefits
only, or an amount equaling the combined total of basic
plus optional life benefits not exceeding 5 times basic
life benefits, or $3,000,000, whichever is less;
(3) dependent life insurance in an amount of $10,000
coverage on the spouse; however, coverage reduces to $5,000
when the eligible annuitant turns 60; and
(4) dependent life insurance in an amount of $10,000
coverage on each dependent other than the spouse.
(b) (Blank). A member, not otherwise covered by this Act,
who has retired as a participating member under Article 2 of
the Illinois Pension Code, but is ineligible for the retirement
annuity under Section 2-119 of the Illinois Pension Code, shall
pay the premiums for coverage under the group life insurance
program under this Act. The Director shall promulgate rules and
regulations to determine the premiums to be paid by a member
under this subsection (b).
(Source: P.A. 94-95, eff. 7-1-05.)
(5 ILCS 375/10) (from Ch. 127, par. 530)

HB0452 - 7 - LRB100 04751 RJF 14758 b
Sec. 10. Contributions by the State and members.
(a) Except as otherwise provided in Section 10.5 of this
Act, the The State shall pay the cost of basic non-contributory
group life insurance and, subject to member paid contributions
set by the Department or required by this Section and except as
provided in this Section, the basic program of group health
benefits on each eligible member, except a member, not
otherwise covered by this Act, who has retired as a
participating member under Article 2 of the Illinois Pension
Code but is ineligible for the retirement annuity under Section
2-119 of the Illinois Pension Code, and part of each eligible
member's and retired member's premiums for health insurance
coverage for enrolled dependents as provided by Section 9. The
State shall pay the cost of the basic program of group health
benefits only after benefits are reduced by the amount of
benefits covered by Medicare for all members and dependents who
are eligible for benefits under Social Security or the Railroad
Retirement system or who had sufficient Medicare-covered
government employment, except that such reduction in benefits
shall apply only to those members and dependents who (1) first
become eligible for such Medicare coverage on or after July 1,
1992; or (2) are Medicare-eligible members or dependents of a
local government unit which began participation in the program
on or after July 1, 1992; or (3) remain eligible for, but no
longer receive Medicare coverage which they had been receiving
on or after July 1, 1992. The Department may determine the

HB0452 - 8 - LRB100 04751 RJF 14758 b
aggregate level of the State's contribution on the basis of
actual cost of medical services adjusted for age, sex or
geographic or other demographic characteristics which affect
the costs of such programs.
The cost of participation in the basic program of group
health benefits for the dependent or survivor of a living or
deceased retired employee who was formerly employed by the
University of Illinois in the Cooperative Extension Service and
would be an annuitant but for the fact that he or she was made
ineligible to participate in the State Universities Retirement
System by clause (4) of subsection (a) of Section 15-107 of the
Illinois Pension Code shall not be greater than the cost of
participation that would otherwise apply to that dependent or
survivor if he or she were the dependent or survivor of an
annuitant under the State Universities Retirement System.
(a-1) (Blank).
(a-2) (Blank).
(a-3) (Blank).
(a-4) (Blank).
(a-5) (Blank).
(a-6) (Blank).
(a-7) (Blank).
(a-8) Any annuitant, survivor, or retired employee may
waive or terminate coverage in the program of group health
benefits. Any such annuitant, survivor, or retired employee who
has waived or terminated coverage may enroll or re-enroll in

HB0452 - 9 - LRB100 04751 RJF 14758 b
the program of group health benefits only during the annual
benefit choice period, as determined by the Director; except
that in the event of termination of coverage due to nonpayment
of premiums, the annuitant, survivor, or retired employee may
not re-enroll in the program.
(a-8.5) Beginning on the effective date of this amendatory
Act of the 97th General Assembly, the Director of Central
Management Services shall, on an annual basis, determine the
amount that the State shall contribute toward the basic program
of group health benefits on behalf of annuitants (including
individuals who (i) participated in the General Assembly
Retirement System, the State Employees' Retirement System of
Illinois, the State Universities Retirement System, the
Teachers' Retirement System of the State of Illinois, or the
Judges Retirement System of Illinois and (ii) qualify as
annuitants under subsection (b) of Section 3 of this Act),
survivors (including individuals who (i) receive an annuity as
a survivor of an individual who participated in the General
Assembly Retirement System, the State Employees' Retirement
System of Illinois, the State Universities Retirement System,
the Teachers' Retirement System of the State of Illinois, or
the Judges Retirement System of Illinois and (ii) qualify as
survivors under subsection (q) of Section 3 of this Act), and
retired employees (as defined in subsection (p) of Section 3 of
this Act). The remainder of the cost of coverage for each
annuitant, survivor, or retired employee, as determined by the

HB0452 - 10 - LRB100 04751 RJF 14758 b
Director of Central Management Services, shall be the
responsibility of that annuitant, survivor, or retired
employee.
Except as otherwise provided in Section 10.5 of this Act,
contributions Contributions required of annuitants, survivors,
and retired employees shall be the same for all retirement
systems and shall also be based on whether an individual has
made an election under Section 15-135.1 of the Illinois Pension
Code. Contributions may be based on annuitants', survivors', or
retired employees' Medicare eligibility, but may not be based
on Social Security eligibility.
(a-9) No later than May 1 of each calendar year, the
Director of Central Management Services shall certify in
writing to the Executive Secretary of the State Employees'
Retirement System of Illinois the amounts of the Medicare
supplement health care premiums and the amounts of the health
care premiums for all other retirees who are not Medicare
eligible.
A separate calculation of the premiums based upon the
actual cost of each health care plan shall be so certified.
The Director of Central Management Services shall provide
to the Executive Secretary of the State Employees' Retirement
System of Illinois such information, statistics, and other data
as he or she may require to review the premium amounts
certified by the Director of Central Management Services.
The Department of Central Management Services, or any

HB0452 - 11 - LRB100 04751 RJF 14758 b
successor agency designated to procure healthcare contracts
pursuant to this Act, is authorized to establish funds,
separate accounts provided by any bank or banks as defined by
the Illinois Banking Act, or separate accounts provided by any
savings and loan association or associations as defined by the
Illinois Savings and Loan Act of 1985 to be held by the
Director, outside the State treasury, for the purpose of
receiving the transfer of moneys from the Local Government
Health Insurance Reserve Fund. The Department may promulgate
rules further defining the methodology for the transfers. Any
interest earned by moneys in the funds or accounts shall inure
to the Local Government Health Insurance Reserve Fund. The
transferred moneys, and interest accrued thereon, shall be used
exclusively for transfers to administrative service
organizations or their financial institutions for payments of
claims to claimants and providers under the self-insurance
health plan. The transferred moneys, and interest accrued
thereon, shall not be used for any other purpose including, but
not limited to, reimbursement of administration fees due the
administrative service organization pursuant to its contract
or contracts with the Department.
(b) State employees who become eligible for this program on
or after January 1, 1980 in positions normally requiring actual
performance of duty not less than 1/2 of a normal work period
but not equal to that of a normal work period, shall be given
the option of participating in the available program. If the

HB0452 - 12 - LRB100 04751 RJF 14758 b
employee elects coverage, the State shall contribute on behalf
of such employee to the cost of the employee's benefit and any
applicable dependent supplement, that sum which bears the same
percentage as that percentage of time the employee regularly
works when compared to normal work period.
(c) The basic non-contributory coverage from the basic
program of group health benefits shall be continued for each
employee not in pay status or on active service by reason of
(1) leave of absence due to illness or injury, (2) authorized
educational leave of absence or sabbatical leave, or (3)
military leave. This coverage shall continue until expiration
of authorized leave and return to active service, but not to
exceed 24 months for leaves under item (1) or (2). This
24-month limitation and the requirement of returning to active
service shall not apply to persons receiving ordinary or
accidental disability benefits or retirement benefits through
the appropriate State retirement system or benefits under the
Workers' Compensation or Occupational Disease Act.
(d) The basic group life insurance coverage shall continue,
with full State contribution, where such person is (1) absent
from active service by reason of disability arising from any
cause other than self-inflicted, (2) on authorized educational
leave of absence or sabbatical leave, or (3) on military leave.
(e) Where the person is in non-pay status for a period in
excess of 30 days or on leave of absence, other than by reason
of disability, educational or sabbatical leave, or military

HB0452 - 13 - LRB100 04751 RJF 14758 b
leave, such person may continue coverage only by making
personal payment equal to the amount normally contributed by
the State on such person's behalf. Such payments and coverage
may be continued: (1) until such time as the person returns to
a status eligible for coverage at State expense, but not to
exceed 24 months or (2) until such person's employment or
annuitant status with the State is terminated (exclusive of any
additional service imposed pursuant to law).
(f) The Department shall establish by rule the extent to
which other employee benefits will continue for persons in
non-pay status or who are not in active service.
(g) The State shall not pay the cost of the basic
non-contributory group life insurance, program of health
benefits and other employee benefits for members who are
survivors as defined by paragraphs (1) and (2) of subsection
(q) of Section 3 of this Act. The costs of benefits for these
survivors shall be paid by the survivors or by the University
of Illinois Cooperative Extension Service, or any combination
thereof. However, the State shall pay the amount of the
reduction in the cost of participation, if any, resulting from
the amendment to subsection (a) made by this amendatory Act of
the 91st General Assembly.
(h) Those persons occupying positions with any department
as a result of emergency appointments pursuant to Section 8b.8
of the Personnel Code who are not considered employees under
this Act shall be given the option of participating in the

HB0452 - 14 - LRB100 04751 RJF 14758 b
programs of group life insurance, health benefits and other
employee benefits. Such persons electing coverage may
participate only by making payment equal to the amount normally
contributed by the State for similarly situated employees. Such
amounts shall be determined by the Director. Such payments and
coverage may be continued until such time as the person becomes
an employee pursuant to this Act or such person's appointment
is terminated.
(i) Any unit of local government within the State of
Illinois may apply to the Director to have its employees,
annuitants, and their dependents provided group health
coverage under this Act on a non-insured basis. To participate,
a unit of local government must agree to enroll all of its
employees, who may select coverage under either the State group
health benefits plan or a health maintenance organization that
has contracted with the State to be available as a health care
provider for employees as defined in this Act. A unit of local
government must remit the entire cost of providing coverage
under the State group health benefits plan or, for coverage
under a health maintenance organization, an amount determined
by the Director based on an analysis of the sex, age,
geographic location, or other relevant demographic variables
for its employees, except that the unit of local government
shall not be required to enroll those of its employees who are
covered spouses or dependents under this plan or another group
policy or plan providing health benefits as long as (1) an

HB0452 - 15 - LRB100 04751 RJF 14758 b
appropriate official from the unit of local government attests
that each employee not enrolled is a covered spouse or
dependent under this plan or another group policy or plan, and
(2) at least 50% of the employees are enrolled and the unit of
local government remits the entire cost of providing coverage
to those employees, except that a participating school district
must have enrolled at least 50% of its full-time employees who
have not waived coverage under the district's group health plan
by participating in a component of the district's cafeteria
plan. A participating school district is not required to enroll
a full-time employee who has waived coverage under the
district's health plan, provided that an appropriate official
from the participating school district attests that the
full-time employee has waived coverage by participating in a
component of the district's cafeteria plan. For the purposes of
this subsection, "participating school district" includes a
unit of local government whose primary purpose is education as
defined by the Department's rules.
Employees of a participating unit of local government who
are not enrolled due to coverage under another group health
policy or plan may enroll in the event of a qualifying change
in status, special enrollment, special circumstance as defined
by the Director, or during the annual Benefit Choice Period. A
participating unit of local government may also elect to cover
its annuitants. Dependent coverage shall be offered on an
optional basis, with the costs paid by the unit of local

HB0452 - 16 - LRB100 04751 RJF 14758 b
government, its employees, or some combination of the two as
determined by the unit of local government. The unit of local
government shall be responsible for timely collection and
transmission of dependent premiums.
The Director shall annually determine monthly rates of
payment, subject to the following constraints:
(1) In the first year of coverage, the rates shall be
equal to the amount normally charged to State employees for
elected optional coverages or for enrolled dependents
coverages or other contributory coverages, or contributed
by the State for basic insurance coverages on behalf of its
employees, adjusted for differences between State
employees and employees of the local government in age,
sex, geographic location or other relevant demographic
variables, plus an amount sufficient to pay for the
additional administrative costs of providing coverage to
employees of the unit of local government and their
dependents.
(2) In subsequent years, a further adjustment shall be
made to reflect the actual prior years' claims experience
of the employees of the unit of local government.
In the case of coverage of local government employees under
a health maintenance organization, the Director shall annually
determine for each participating unit of local government the
maximum monthly amount the unit may contribute toward that
coverage, based on an analysis of (i) the age, sex, geographic

HB0452 - 17 - LRB100 04751 RJF 14758 b
location, and other relevant demographic variables of the
unit's employees and (ii) the cost to cover those employees
under the State group health benefits plan. The Director may
similarly determine the maximum monthly amount each unit of
local government may contribute toward coverage of its
employees' dependents under a health maintenance organization.
Monthly payments by the unit of local government or its
employees for group health benefits plan or health maintenance
organization coverage shall be deposited in the Local
Government Health Insurance Reserve Fund.
The Local Government Health Insurance Reserve Fund is
hereby created as a nonappropriated trust fund to be held
outside the State Treasury, with the State Treasurer as
custodian. The Local Government Health Insurance Reserve Fund
shall be a continuing fund not subject to fiscal year
limitations. The Local Government Health Insurance Reserve
Fund is not subject to administrative charges or charge-backs,
including but not limited to those authorized under Section 8h
of the State Finance Act. All revenues arising from the
administration of the health benefits program established
under this Section shall be deposited into the Local Government
Health Insurance Reserve Fund. Any interest earned on moneys in
the Local Government Health Insurance Reserve Fund shall be
deposited into the Fund. All expenditures from this Fund shall
be used for payments for health care benefits for local
government and rehabilitation facility employees, annuitants,

HB0452 - 18 - LRB100 04751 RJF 14758 b
and dependents, and to reimburse the Department or its
administrative service organization for all expenses incurred
in the administration of benefits. No other State funds may be
used for these purposes.
A local government employer's participation or desire to
participate in a program created under this subsection shall
not limit that employer's duty to bargain with the
representative of any collective bargaining unit of its
employees.
(j) Any rehabilitation facility within the State of
Illinois may apply to the Director to have its employees,
annuitants, and their eligible dependents provided group
health coverage under this Act on a non-insured basis. To
participate, a rehabilitation facility must agree to enroll all
of its employees and remit the entire cost of providing such
coverage for its employees, except that the rehabilitation
facility shall not be required to enroll those of its employees
who are covered spouses or dependents under this plan or
another group policy or plan providing health benefits as long
as (1) an appropriate official from the rehabilitation facility
attests that each employee not enrolled is a covered spouse or
dependent under this plan or another group policy or plan, and
(2) at least 50% of the employees are enrolled and the
rehabilitation facility remits the entire cost of providing
coverage to those employees. Employees of a participating
rehabilitation facility who are not enrolled due to coverage

HB0452 - 19 - LRB100 04751 RJF 14758 b
under another group health policy or plan may enroll in the
event of a qualifying change in status, special enrollment,
special circumstance as defined by the Director, or during the
annual Benefit Choice Period. A participating rehabilitation
facility may also elect to cover its annuitants. Dependent
coverage shall be offered on an optional basis, with the costs
paid by the rehabilitation facility, its employees, or some
combination of the 2 as determined by the rehabilitation
facility. The rehabilitation facility shall be responsible for
timely collection and transmission of dependent premiums.
The Director shall annually determine quarterly rates of
payment, subject to the following constraints:
(1) In the first year of coverage, the rates shall be
equal to the amount normally charged to State employees for
elected optional coverages or for enrolled dependents
coverages or other contributory coverages on behalf of its
employees, adjusted for differences between State
employees and employees of the rehabilitation facility in
age, sex, geographic location or other relevant
demographic variables, plus an amount sufficient to pay for
the additional administrative costs of providing coverage
to employees of the rehabilitation facility and their
dependents.
(2) In subsequent years, a further adjustment shall be
made to reflect the actual prior years' claims experience
of the employees of the rehabilitation facility.

HB0452 - 20 - LRB100 04751 RJF 14758 b
Monthly payments by the rehabilitation facility or its
employees for group health benefits shall be deposited in the
Local Government Health Insurance Reserve Fund.
(k) Any domestic violence shelter or service within the
State of Illinois may apply to the Director to have its
employees, annuitants, and their dependents provided group
health coverage under this Act on a non-insured basis. To
participate, a domestic violence shelter or service must agree
to enroll all of its employees and pay the entire cost of
providing such coverage for its employees. The domestic
violence shelter shall not be required to enroll those of its
employees who are covered spouses or dependents under this plan
or another group policy or plan providing health benefits as
long as (1) an appropriate official from the domestic violence
shelter attests that each employee not enrolled is a covered
spouse or dependent under this plan or another group policy or
plan and (2) at least 50% of the employees are enrolled and the
domestic violence shelter remits the entire cost of providing
coverage to those employees. Employees of a participating
domestic violence shelter who are not enrolled due to coverage
under another group health policy or plan may enroll in the
event of a qualifying change in status, special enrollment, or
special circumstance as defined by the Director or during the
annual Benefit Choice Period. A participating domestic
violence shelter may also elect to cover its annuitants.
Dependent coverage shall be offered on an optional basis, with

HB0452 - 21 - LRB100 04751 RJF 14758 b
employees, or some combination of the 2 as determined by the
domestic violence shelter or service. The domestic violence
shelter or service shall be responsible for timely collection
and transmission of dependent premiums.
The Director shall annually determine rates of payment,
subject to the following constraints:
(1) In the first year of coverage, the rates shall be
equal to the amount normally charged to State employees for
elected optional coverages or for enrolled dependents
coverages or other contributory coverages on behalf of its
employees, adjusted for differences between State
employees and employees of the domestic violence shelter or
service in age, sex, geographic location or other relevant
demographic variables, plus an amount sufficient to pay for
the additional administrative costs of providing coverage
to employees of the domestic violence shelter or service
and their dependents.
(2) In subsequent years, a further adjustment shall be
made to reflect the actual prior years' claims experience
of the employees of the domestic violence shelter or
service.
Monthly payments by the domestic violence shelter or
service or its employees for group health insurance shall be
deposited in the Local Government Health Insurance Reserve
Fund.
(l) A public community college or entity organized pursuant

HB0452 - 22 - LRB100 04751 RJF 14758 b
to the Public Community College Act may apply to the Director
initially to have only annuitants not covered prior to July 1,
1992 by the district's health plan provided health coverage
under this Act on a non-insured basis. The community college
must execute a 2-year contract to participate in the Local
Government Health Plan. Any annuitant may enroll in the event
of a qualifying change in status, special enrollment, special
circumstance as defined by the Director, or during the annual
Benefit Choice Period.
The Director shall annually determine monthly rates of
payment subject to the following constraints: for those
community colleges with annuitants only enrolled, first year
rates shall be equal to the average cost to cover claims for a
State member adjusted for demographics, Medicare
participation, and other factors; and in the second year, a
further adjustment of rates shall be made to reflect the actual
first year's claims experience of the covered annuitants.
(l-5) The provisions of subsection (l) become inoperative
on July 1, 1999.
(m) The Director shall adopt any rules deemed necessary for
implementation of this amendatory Act of 1989 (Public Act
86-978).
(n) Any child advocacy center within the State of Illinois
may apply to the Director to have its employees, annuitants,
and their dependents provided group health coverage under this
Act on a non-insured basis. To participate, a child advocacy

HB0452 - 23 - LRB100 04751 RJF 14758 b
center must agree to enroll all of its employees and pay the
entire cost of providing coverage for its employees. The child
advocacy center shall not be required to enroll those of its
employees who are covered spouses or dependents under this plan
or another group policy or plan providing health benefits as
long as (1) an appropriate official from the child advocacy
center attests that each employee not enrolled is a covered
spouse or dependent under this plan or another group policy or
plan and (2) at least 50% of the employees are enrolled and the
child advocacy center remits the entire cost of providing
coverage to those employees. Employees of a participating child
advocacy center who are not enrolled due to coverage under
another group health policy or plan may enroll in the event of
a qualifying change in status, special enrollment, or special
circumstance as defined by the Director or during the annual
Benefit Choice Period. A participating child advocacy center
may also elect to cover its annuitants. Dependent coverage
shall be offered on an optional basis, with the costs paid by
the child advocacy center, its employees, or some combination
of the 2 as determined by the child advocacy center. The child
advocacy center shall be responsible for timely collection and
transmission of dependent premiums.
The Director shall annually determine rates of payment,
subject to the following constraints:
(1) In the first year of coverage, the rates shall be
equal to the amount normally charged to State employees for

HB0452 - 24 - LRB100 04751 RJF 14758 b
elected optional coverages or for enrolled dependents
coverages or other contributory coverages on behalf of its
employees, adjusted for differences between State
employees and employees of the child advocacy center in
age, sex, geographic location, or other relevant
demographic variables, plus an amount sufficient to pay for
the additional administrative costs of providing coverage
to employees of the child advocacy center and their
dependents.
(2) In subsequent years, a further adjustment shall be
made to reflect the actual prior years' claims experience
of the employees of the child advocacy center.
Monthly payments by the child advocacy center or its
employees for group health insurance shall be deposited into
the Local Government Health Insurance Reserve Fund.
(Source: P.A. 97-695, eff. 7-1-12; 98-488, eff. 8-16-13.)
(5 ILCS 375/10.5 new)
Sec. 10.5. Ending State-funded benefits for retired
elected officials.
(a) For the purposes of this Section, "retired elected
official" means an annuitant under Article 2 of the Illinois
Pension Code, a person receiving a survivor's annuity under
Article 2 of the Pension Code, or a member, not otherwise
covered by this Act, who has retired as a participating member
under Article 2 of the Pension Code but is ineligible for the

HB0452 - 25 - LRB100 04751 RJF 14758 b
retirement annuity under Section 2-119 of the Illinois Pension
Code.
(b) Notwithstanding any other provision of law, on and
after the effective date of this amendatory Act of the 100th
General Assembly, the State shall not pay or otherwise make
contributions toward the costs of any group life insurance
program or program of health benefits provided under this Act
for retired elected officials.
(c) Notwithstanding any other provision of law, a retired
elected official enrolled in any group life insurance program
or program of health benefits provided under this Act shall pay
the entirety of the cost of coverage, unless he or she has
waived or terminated coverage under subsection (d) of this
Section. The cost of coverage shall be determined by the
Director. Nothing in this Section shall be construed to prevent
any retired elected official from receiving group health or
life insurance benefits under this Act, where that retired
elected official contributes the entirety of the cost of
coverage.
(d) Any retired elected official may waive or terminate
coverage in the program of health benefits or group life
insurance. Any retired elected official who has waived or
terminated coverage may enroll or re-enroll in the program of
group health benefits or group life insurance only during the
annual benefit choice period, as determined by the Director;
except that in the event of termination of coverage due to

HB0452 - 26 - LRB100 04751 RJF 14758 b
nonpayment of premiums, the retired elected official may not
re-enroll in the program.
Section 99. Effective date. This Act takes effect upon
becoming law.