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: (Introduced) 2017-03-31 - Rule 19(a) / Re-referred to Rules Committee [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

HB0452LRB100 04751 RJF 14758 b
1 AN ACT concerning government.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The State Employees Group Insurance Act of 1971
5is amended by changing Sections 6, 7, and 10 and by adding
6Section 10.5 as follows:
7 (5 ILCS 375/6) (from Ch. 127, par. 526)
8 Sec. 6. Program of health benefits.
9 (a) The program of health benefits shall provide for
10protection against the financial costs of health care expenses
11incurred in and out of hospital including basic
12hospital-surgical-medical coverages. The program may include,
13but shall not be limited to, such supplemental coverages as
14out-patient diagnostic X-ray and laboratory expenses,
15prescription drugs, dental services, hearing evaluations,
16hearing aids, the dispensing and fitting of hearing aids, and
17similar group benefits as are now or may become available.
18However, nothing in this Act shall be construed to permit, on
19or after July 1, 1980, the non-contributory portion of any such
20program to include the expenses of obtaining an abortion,
21induced miscarriage or induced premature birth unless, in the
22opinion of a physician, such procedures are necessary for the
23preservation of the life of the woman seeking such treatment,

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1or except an induced premature birth intended to produce a live
2viable child and such procedure is necessary for the health of
3the mother or the unborn child. The program may also include
4coverage for those who rely on treatment by prayer or spiritual
5means alone for healing in accordance with the tenets and
6practice of a recognized religious denomination.
7 The program of health benefits shall be designed by the
8Director (1) to provide a reasonable relationship between the
9benefits to be included and the expected distribution of
10expenses of each such type to be incurred by the covered
11members and dependents, (2) to specify, as covered benefits and
12as optional benefits, the medical services of practitioners in
13all categories licensed under the Medical Practice Act of 1987,
14(3) to include reasonable controls, which may include
15deductible and co-insurance provisions, applicable to some or
16all of the benefits, or a coordination of benefits provision,
17to prevent or minimize unnecessary utilization of the various
18hospital, surgical and medical expenses to be provided and to
19provide reasonable assurance of stability of the program, and
20(4) to provide benefits to the extent possible to members
21throughout the State, wherever located, on an equitable basis.
22Notwithstanding any other provision of this Section or Act, for
23all members or dependents who are eligible for benefits under
24Social Security or the Railroad Retirement system or who had
25sufficient Medicare-covered government employment, the
26Department shall reduce benefits which would otherwise be paid

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1by Medicare, by the amount of benefits for which the member or
2dependents are eligible under Medicare, except that such
3reduction in benefits shall apply only to those members or
4dependents who (1) first become eligible for such medicare
5coverage on or after the effective date of this amendatory Act
6of 1992; or (2) are Medicare-eligible members or dependents of
7a local government unit which began participation in the
8program on or after July 1, 1992; or (3) remain eligible for
9but no longer receive Medicare coverage which they had been
10receiving on or after the effective date of this amendatory Act
11of 1992.
12 Notwithstanding any other provisions of this Act, where a
13covered member or dependents are eligible for benefits under
14the federal Medicare health insurance program (Title XVIII of
15the Social Security Act as added by Public Law 89-97, 89th
16Congress), benefits paid under the State of Illinois program or
17plan will be reduced by the amount of benefits paid by
18Medicare. For members or dependents who are eligible for
19benefits under Social Security or the Railroad Retirement
20system or who had sufficient Medicare-covered government
21employment, benefits shall be reduced by the amount for which
22the member or dependent is eligible under Medicare, except that
23such reduction in benefits shall apply only to those members or
24dependents who (1) first become eligible for such Medicare
25coverage on or after the effective date of this amendatory Act
26of 1992; or (2) are Medicare-eligible members or dependents of

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1a local government unit which began participation in the
2program on or after July 1, 1992; or (3) remain eligible for,
3but no longer receive Medicare coverage which they had been
4receiving on or after the effective date of this amendatory Act
5of 1992. Premiums may be adjusted, where applicable, to an
6amount deemed by the Director to be reasonably consistent with
7any reduction of benefits.
8 (b) (Blank). A member, not otherwise covered by this Act,
9who has retired as a participating member under Article 2 of
10the Illinois Pension Code but is ineligible for the retirement
11annuity under Section 2-119 of the Illinois Pension Code, shall
12pay the premiums for coverage, not exceeding the amount paid by
13the State for the non-contributory coverage for other members,
14under the group health benefits program under this Act. The
15Director shall determine the premiums to be paid by a member
16under this subsection (b).
17(Source: P.A. 93-47, eff. 7-1-03.)
18 (5 ILCS 375/7) (from Ch. 127, par. 527)
19 Sec. 7. Group life insurance program.
20 (a) The basic noncontributory group life insurance program
21shall provide coverage as follows:
22 (1) employees shall be insured in an amount equal to
23 the basic annual salary rate, exclusive of overtime, bonus,
24 or other cumulative additional income factors, raised to
25 the next round hundred dollar amount if it is not already a

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1 round hundred dollar amount;
2 (2) annuitants shall be insured in the same manner as
3 described for active employees, based on the salary in
4 force immediately before retirement, with coverage
5 becoming effective on the effective date of retirement
6 benefits or the first day of the month of application,
7 whichever occurs later, except that at age 60 the amount of
8 coverage for the annuitant shall be reduced to $5,000;
9 (3) survivors whose coverage became effective prior to
10 September 22, 1979 shall be insured for $2,000;
11 (4) retired employees shall not be eligible under the
12 group life insurance program contracted to begin or
13 continue after June 30, 1973.
14 (a-5) There shall also be available on an optional basis to
15employees, annuitants whose retirement benefits begin within
16one year of their receipt of final compensation, and survivors
17whose coverage became effective prior to September 22, 1979, a
18contributory program of:
19 (1) supplemental life insurance in an amount not
20 exceeding 8 times the basic life benefits for active
21 employees and annuitants under age 60 and not exceeding 4
22 times the basic life benefits for annuitants age 60 and
23 over, as described above, except that (a) amounts selected
24 by employees and annuitants must be in full multiples of
25 the basic amount, and (b) premiums may be adjusted by age
26 bracket established in rules supplementing this Act;

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1 beginning July 1, 1981, survivors whose coverage becomes
2 effective on or after September 22, 1979, shall have the
3 option of participating in the contributory program of life
4 insurance in an amount of $5,000 coverage;
5 (2) accidental death and dismemberment, with the
6 employee and annuitant having the option of electing an
7 amount equal to the basic noncontributory life benefits
8 only, or an amount equaling the combined total of basic
9 plus optional life benefits not exceeding 5 times basic
10 life benefits, or $3,000,000, whichever is less;
11 (3) dependent life insurance in an amount of $10,000
12 coverage on the spouse; however, coverage reduces to $5,000
13 when the eligible annuitant turns 60; and
14 (4) dependent life insurance in an amount of $10,000
15 coverage on each dependent other than the spouse.
16 (b) (Blank). A member, not otherwise covered by this Act,
17who has retired as a participating member under Article 2 of
18the Illinois Pension Code, but is ineligible for the retirement
19annuity under Section 2-119 of the Illinois Pension Code, shall
20pay the premiums for coverage under the group life insurance
21program under this Act. The Director shall promulgate rules and
22regulations to determine the premiums to be paid by a member
23under this subsection (b).
24(Source: P.A. 94-95, eff. 7-1-05.)
25 (5 ILCS 375/10) (from Ch. 127, par. 530)

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1 Sec. 10. Contributions by the State and members.
2 (a) Except as otherwise provided in Section 10.5 of this
3Act, the The State shall pay the cost of basic non-contributory
4group life insurance and, subject to member paid contributions
5set by the Department or required by this Section and except as
6provided in this Section, the basic program of group health
7benefits on each eligible member, except a member, not
8otherwise covered by this Act, who has retired as a
9participating member under Article 2 of the Illinois Pension
10Code but is ineligible for the retirement annuity under Section
112-119 of the Illinois Pension Code, and part of each eligible
12member's and retired member's premiums for health insurance
13coverage for enrolled dependents as provided by Section 9. The
14State shall pay the cost of the basic program of group health
15benefits only after benefits are reduced by the amount of
16benefits covered by Medicare for all members and dependents who
17are eligible for benefits under Social Security or the Railroad
18Retirement system or who had sufficient Medicare-covered
19government employment, except that such reduction in benefits
20shall apply only to those members and dependents who (1) first
21become eligible for such Medicare coverage on or after July 1,
221992; or (2) are Medicare-eligible members or dependents of a
23local government unit which began participation in the program
24on or after July 1, 1992; or (3) remain eligible for, but no
25longer receive Medicare coverage which they had been receiving
26on or after July 1, 1992. The Department may determine the

HB0452- 8 -LRB100 04751 RJF 14758 b
1aggregate level of the State's contribution on the basis of
2actual cost of medical services adjusted for age, sex or
3geographic or other demographic characteristics which affect
4the costs of such programs.
5 The cost of participation in the basic program of group
6health benefits for the dependent or survivor of a living or
7deceased retired employee who was formerly employed by the
8University of Illinois in the Cooperative Extension Service and
9would be an annuitant but for the fact that he or she was made
10ineligible to participate in the State Universities Retirement
11System by clause (4) of subsection (a) of Section 15-107 of the
12Illinois Pension Code shall not be greater than the cost of
13participation that would otherwise apply to that dependent or
14survivor if he or she were the dependent or survivor of an
15annuitant under the State Universities Retirement System.
16 (a-1) (Blank).
17 (a-2) (Blank).
18 (a-3) (Blank).
19 (a-4) (Blank).
20 (a-5) (Blank).
21 (a-6) (Blank).
22 (a-7) (Blank).
23 (a-8) Any annuitant, survivor, or retired employee may
24waive or terminate coverage in the program of group health
25benefits. Any such annuitant, survivor, or retired employee who
26has waived or terminated coverage may enroll or re-enroll in

HB0452- 9 -LRB100 04751 RJF 14758 b
1the program of group health benefits only during the annual
2benefit choice period, as determined by the Director; except
3that in the event of termination of coverage due to nonpayment
4of premiums, the annuitant, survivor, or retired employee may
5not re-enroll in the program.
6 (a-8.5) Beginning on the effective date of this amendatory
7Act of the 97th General Assembly, the Director of Central
8Management Services shall, on an annual basis, determine the
9amount that the State shall contribute toward the basic program
10of group health benefits on behalf of annuitants (including
11individuals who (i) participated in the General Assembly
12Retirement System, the State Employees' Retirement System of
13Illinois, the State Universities Retirement System, the
14Teachers' Retirement System of the State of Illinois, or the
15Judges Retirement System of Illinois and (ii) qualify as
16annuitants under subsection (b) of Section 3 of this Act),
17survivors (including individuals who (i) receive an annuity as
18a survivor of an individual who participated in the General
19Assembly Retirement System, the State Employees' Retirement
20System of Illinois, the State Universities Retirement System,
21the Teachers' Retirement System of the State of Illinois, or
22the Judges Retirement System of Illinois and (ii) qualify as
23survivors under subsection (q) of Section 3 of this Act), and
24retired employees (as defined in subsection (p) of Section 3 of
25this Act). The remainder of the cost of coverage for each
26annuitant, survivor, or retired employee, as determined by the

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1Director of Central Management Services, shall be the
2responsibility of that annuitant, survivor, or retired
3employee.
4 Except as otherwise provided in Section 10.5 of this Act,
5contributions Contributions required of annuitants, survivors,
6and retired employees shall be the same for all retirement
7systems and shall also be based on whether an individual has
8made an election under Section 15-135.1 of the Illinois Pension
9Code. Contributions may be based on annuitants', survivors', or
10retired employees' Medicare eligibility, but may not be based
11on Social Security eligibility.
12 (a-9) No later than May 1 of each calendar year, the
13Director of Central Management Services shall certify in
14writing to the Executive Secretary of the State Employees'
15Retirement System of Illinois the amounts of the Medicare
16supplement health care premiums and the amounts of the health
17care premiums for all other retirees who are not Medicare
18eligible.
19 A separate calculation of the premiums based upon the
20actual cost of each health care plan shall be so certified.
21 The Director of Central Management Services shall provide
22to the Executive Secretary of the State Employees' Retirement
23System of Illinois such information, statistics, and other data
24as he or she may require to review the premium amounts
25certified by the Director of Central Management Services.
26 The Department of Central Management Services, or any

HB0452- 11 -LRB100 04751 RJF 14758 b
1successor agency designated to procure healthcare contracts
2pursuant to this Act, is authorized to establish funds,
3separate accounts provided by any bank or banks as defined by
4the Illinois Banking Act, or separate accounts provided by any
5savings and loan association or associations as defined by the
6Illinois Savings and Loan Act of 1985 to be held by the
7Director, outside the State treasury, for the purpose of
8receiving the transfer of moneys from the Local Government
9Health Insurance Reserve Fund. The Department may promulgate
10rules further defining the methodology for the transfers. Any
11interest earned by moneys in the funds or accounts shall inure
12to the Local Government Health Insurance Reserve Fund. The
13transferred moneys, and interest accrued thereon, shall be used
14exclusively for transfers to administrative service
15organizations or their financial institutions for payments of
16claims to claimants and providers under the self-insurance
17health plan. The transferred moneys, and interest accrued
18thereon, shall not be used for any other purpose including, but
19not limited to, reimbursement of administration fees due the
20administrative service organization pursuant to its contract
21or contracts with the Department.
22 (b) State employees who become eligible for this program on
23or after January 1, 1980 in positions normally requiring actual
24performance of duty not less than 1/2 of a normal work period
25but not equal to that of a normal work period, shall be given
26the option of participating in the available program. If the

HB0452- 12 -LRB100 04751 RJF 14758 b
1employee elects coverage, the State shall contribute on behalf
2of such employee to the cost of the employee's benefit and any
3applicable dependent supplement, that sum which bears the same
4percentage as that percentage of time the employee regularly
5works when compared to normal work period.
6 (c) The basic non-contributory coverage from the basic
7program of group health benefits shall be continued for each
8employee not in pay status or on active service by reason of
9(1) leave of absence due to illness or injury, (2) authorized
10educational leave of absence or sabbatical leave, or (3)
11military leave. This coverage shall continue until expiration
12of authorized leave and return to active service, but not to
13exceed 24 months for leaves under item (1) or (2). This
1424-month limitation and the requirement of returning to active
15service shall not apply to persons receiving ordinary or
16accidental disability benefits or retirement benefits through
17the appropriate State retirement system or benefits under the
18Workers' Compensation or Occupational Disease Act.
19 (d) The basic group life insurance coverage shall continue,
20with full State contribution, where such person is (1) absent
21from active service by reason of disability arising from any
22cause other than self-inflicted, (2) on authorized educational
23leave of absence or sabbatical leave, or (3) on military leave.
24 (e) Where the person is in non-pay status for a period in
25excess of 30 days or on leave of absence, other than by reason
26of disability, educational or sabbatical leave, or military

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1leave, such person may continue coverage only by making
2personal payment equal to the amount normally contributed by
3the State on such person's behalf. Such payments and coverage
4may be continued: (1) until such time as the person returns to
5a status eligible for coverage at State expense, but not to
6exceed 24 months or (2) until such person's employment or
7annuitant status with the State is terminated (exclusive of any
8additional service imposed pursuant to law).
9 (f) The Department shall establish by rule the extent to
10which other employee benefits will continue for persons in
11non-pay status or who are not in active service.
12 (g) The State shall not pay the cost of the basic
13non-contributory group life insurance, program of health
14benefits and other employee benefits for members who are
15survivors as defined by paragraphs (1) and (2) of subsection
16(q) of Section 3 of this Act. The costs of benefits for these
17survivors shall be paid by the survivors or by the University
18of Illinois Cooperative Extension Service, or any combination
19thereof. However, the State shall pay the amount of the
20reduction in the cost of participation, if any, resulting from
21the amendment to subsection (a) made by this amendatory Act of
22the 91st General Assembly.
23 (h) Those persons occupying positions with any department
24as a result of emergency appointments pursuant to Section 8b.8
25of the Personnel Code who are not considered employees under
26this Act shall be given the option of participating in the

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1programs of group life insurance, health benefits and other
2employee benefits. Such persons electing coverage may
3participate only by making payment equal to the amount normally
4contributed by the State for similarly situated employees. Such
5amounts shall be determined by the Director. Such payments and
6coverage may be continued until such time as the person becomes
7an employee pursuant to this Act or such person's appointment
8is terminated.
9 (i) Any unit of local government within the State of
10Illinois may apply to the Director to have its employees,
11annuitants, and their dependents provided group health
12coverage under this Act on a non-insured basis. To participate,
13a unit of local government must agree to enroll all of its
14employees, who may select coverage under either the State group
15health benefits plan or a health maintenance organization that
16has contracted with the State to be available as a health care
17provider for employees as defined in this Act. A unit of local
18government must remit the entire cost of providing coverage
19under the State group health benefits plan or, for coverage
20under a health maintenance organization, an amount determined
21by the Director based on an analysis of the sex, age,
22geographic location, or other relevant demographic variables
23for its employees, except that the unit of local government
24shall not be required to enroll those of its employees who are
25covered spouses or dependents under this plan or another group
26policy or plan providing health benefits as long as (1) an

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1appropriate official from the unit of local government attests
2that each employee not enrolled is a covered spouse or
3dependent under this plan or another group policy or plan, and
4(2) at least 50% of the employees are enrolled and the unit of
5local government remits the entire cost of providing coverage
6to those employees, except that a participating school district
7must have enrolled at least 50% of its full-time employees who
8have not waived coverage under the district's group health plan
9by participating in a component of the district's cafeteria
10plan. A participating school district is not required to enroll
11a full-time employee who has waived coverage under the
12district's health plan, provided that an appropriate official
13from the participating school district attests that the
14full-time employee has waived coverage by participating in a
15component of the district's cafeteria plan. For the purposes of
16this subsection, "participating school district" includes a
17unit of local government whose primary purpose is education as
18defined by the Department's rules.
19 Employees of a participating unit of local government who
20are not enrolled due to coverage under another group health
21policy or plan may enroll in the event of a qualifying change
22in status, special enrollment, special circumstance as defined
23by the Director, or during the annual Benefit Choice Period. A
24participating unit of local government may also elect to cover
25its annuitants. Dependent coverage shall be offered on an
26optional basis, with the costs paid by the unit of local

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1government, its employees, or some combination of the two as
2determined by the unit of local government. The unit of local
3government shall be responsible for timely collection and
4transmission of dependent premiums.
5 The Director shall annually determine monthly rates of
6payment, subject to the following constraints:
7 (1) In the first year of coverage, the rates shall be
8 equal to the amount normally charged to State employees for
9 elected optional coverages or for enrolled dependents
10 coverages or other contributory coverages, or contributed
11 by the State for basic insurance coverages on behalf of its
12 employees, adjusted for differences between State
13 employees and employees of the local government in age,
14 sex, geographic location or other relevant demographic
15 variables, plus an amount sufficient to pay for the
16 additional administrative costs of providing coverage to
17 employees of the unit of local government and their
18 dependents.
19 (2) In subsequent years, a further adjustment shall be
20 made to reflect the actual prior years' claims experience
21 of the employees of the unit of local government.
22 In the case of coverage of local government employees under
23a health maintenance organization, the Director shall annually
24determine for each participating unit of local government the
25maximum monthly amount the unit may contribute toward that
26coverage, based on an analysis of (i) the age, sex, geographic

HB0452- 17 -LRB100 04751 RJF 14758 b
1location, and other relevant demographic variables of the
2unit's employees and (ii) the cost to cover those employees
3under the State group health benefits plan. The Director may
4similarly determine the maximum monthly amount each unit of
5local government may contribute toward coverage of its
6employees' dependents under a health maintenance organization.
7 Monthly payments by the unit of local government or its
8employees for group health benefits plan or health maintenance
9organization coverage shall be deposited in the Local
10Government Health Insurance Reserve Fund.
11 The Local Government Health Insurance Reserve Fund is
12hereby created as a nonappropriated trust fund to be held
13outside the State Treasury, with the State Treasurer as
14custodian. The Local Government Health Insurance Reserve Fund
15shall be a continuing fund not subject to fiscal year
16limitations. The Local Government Health Insurance Reserve
17Fund is not subject to administrative charges or charge-backs,
18including but not limited to those authorized under Section 8h
19of the State Finance Act. All revenues arising from the
20administration of the health benefits program established
21under this Section shall be deposited into the Local Government
22Health Insurance Reserve Fund. Any interest earned on moneys in
23the Local Government Health Insurance Reserve Fund shall be
24deposited into the Fund. All expenditures from this Fund shall
25be used for payments for health care benefits for local
26government and rehabilitation facility employees, annuitants,

HB0452- 18 -LRB100 04751 RJF 14758 b
1and dependents, and to reimburse the Department or its
2administrative service organization for all expenses incurred
3in the administration of benefits. No other State funds may be
4used for these purposes.
5 A local government employer's participation or desire to
6participate in a program created under this subsection shall
7not limit that employer's duty to bargain with the
8representative of any collective bargaining unit of its
9employees.
10 (j) Any rehabilitation facility within the State of
11Illinois may apply to the Director to have its employees,
12annuitants, and their eligible dependents provided group
13health coverage under this Act on a non-insured basis. To
14participate, a rehabilitation facility must agree to enroll all
15of its employees and remit the entire cost of providing such
16coverage for its employees, except that the rehabilitation
17facility shall not be required to enroll those of its employees
18who are covered spouses or dependents under this plan or
19another group policy or plan providing health benefits as long
20as (1) an appropriate official from the rehabilitation facility
21attests that each employee not enrolled is a covered spouse or
22dependent under this plan or another group policy or plan, and
23(2) at least 50% of the employees are enrolled and the
24rehabilitation facility remits the entire cost of providing
25coverage to those employees. Employees of a participating
26rehabilitation facility who are not enrolled due to coverage

HB0452- 19 -LRB100 04751 RJF 14758 b
1under another group health policy or plan may enroll in the
2event of a qualifying change in status, special enrollment,
3special circumstance as defined by the Director, or during the
4annual Benefit Choice Period. A participating rehabilitation
5facility may also elect to cover its annuitants. Dependent
6coverage shall be offered on an optional basis, with the costs
7paid by the rehabilitation facility, its employees, or some
8combination of the 2 as determined by the rehabilitation
9facility. The rehabilitation facility shall be responsible for
10timely collection and transmission of dependent premiums.
11 The Director shall annually determine quarterly rates of
12payment, subject to the following constraints:
13 (1) In the first year of coverage, the rates shall be
14 equal to the amount normally charged to State employees for
15 elected optional coverages or for enrolled dependents
16 coverages or other contributory coverages on behalf of its
17 employees, adjusted for differences between State
18 employees and employees of the rehabilitation facility in
19 age, sex, geographic location or other relevant
20 demographic variables, plus an amount sufficient to pay for
21 the additional administrative costs of providing coverage
22 to employees of the rehabilitation facility and their
23 dependents.
24 (2) In subsequent years, a further adjustment shall be
25 made to reflect the actual prior years' claims experience
26 of the employees of the rehabilitation facility.

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1 Monthly payments by the rehabilitation facility or its
2employees for group health benefits shall be deposited in the
3Local Government Health Insurance Reserve Fund.
4 (k) Any domestic violence shelter or service within the
5State of Illinois may apply to the Director to have its
6employees, annuitants, and their dependents provided group
7health coverage under this Act on a non-insured basis. To
8participate, a domestic violence shelter or service must agree
9to enroll all of its employees and pay the entire cost of
10providing such coverage for its employees. The domestic
11violence shelter shall not be required to enroll those of its
12employees who are covered spouses or dependents under this plan
13or another group policy or plan providing health benefits as
14long as (1) an appropriate official from the domestic violence
15shelter attests that each employee not enrolled is a covered
16spouse or dependent under this plan or another group policy or
17plan and (2) at least 50% of the employees are enrolled and the
18domestic violence shelter remits the entire cost of providing
19coverage to those employees. Employees of a participating
20domestic violence shelter who are not enrolled due to coverage
21under another group health policy or plan may enroll in the
22event of a qualifying change in status, special enrollment, or
23special circumstance as defined by the Director or during the
24annual Benefit Choice Period. A participating domestic
25violence shelter may also elect to cover its annuitants.
26Dependent coverage shall be offered on an optional basis, with

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1employees, or some combination of the 2 as determined by the
2domestic violence shelter or service. The domestic violence
3shelter or service shall be responsible for timely collection
4and transmission of dependent premiums.
5 The Director shall annually determine rates of payment,
6subject to the following constraints:
7 (1) In the first year of coverage, the rates shall be
8 equal to the amount normally charged to State employees for
9 elected optional coverages or for enrolled dependents
10 coverages or other contributory coverages on behalf of its
11 employees, adjusted for differences between State
12 employees and employees of the domestic violence shelter or
13 service in age, sex, geographic location or other relevant
14 demographic variables, plus an amount sufficient to pay for
15 the additional administrative costs of providing coverage
16 to employees of the domestic violence shelter or service
17 and their dependents.
18 (2) In subsequent years, a further adjustment shall be
19 made to reflect the actual prior years' claims experience
20 of the employees of the domestic violence shelter or
21 service.
22 Monthly payments by the domestic violence shelter or
23service or its employees for group health insurance shall be
24deposited in the Local Government Health Insurance Reserve
25Fund.
26 (l) A public community college or entity organized pursuant

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1to the Public Community College Act may apply to the Director
2initially to have only annuitants not covered prior to July 1,
31992 by the district's health plan provided health coverage
4under this Act on a non-insured basis. The community college
5must execute a 2-year contract to participate in the Local
6Government Health Plan. Any annuitant may enroll in the event
7of a qualifying change in status, special enrollment, special
8circumstance as defined by the Director, or during the annual
9Benefit Choice Period.
10 The Director shall annually determine monthly rates of
11payment subject to the following constraints: for those
12community colleges with annuitants only enrolled, first year
13rates shall be equal to the average cost to cover claims for a
14State member adjusted for demographics, Medicare
15participation, and other factors; and in the second year, a
16further adjustment of rates shall be made to reflect the actual
17first year's claims experience of the covered annuitants.
18 (l-5) The provisions of subsection (l) become inoperative
19on July 1, 1999.
20 (m) The Director shall adopt any rules deemed necessary for
21implementation of this amendatory Act of 1989 (Public Act
2286-978).
23 (n) Any child advocacy center within the State of Illinois
24may apply to the Director to have its employees, annuitants,
25and their dependents provided group health coverage under this
26Act on a non-insured basis. To participate, a child advocacy

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1center must agree to enroll all of its employees and pay the
2entire cost of providing coverage for its employees. The child
3advocacy center shall not be required to enroll those of its
4employees who are covered spouses or dependents under this plan
5or another group policy or plan providing health benefits as
6long as (1) an appropriate official from the child advocacy
7center attests that each employee not enrolled is a covered
8spouse or dependent under this plan or another group policy or
9plan and (2) at least 50% of the employees are enrolled and the
10child advocacy center remits the entire cost of providing
11coverage to those employees. Employees of a participating child
12advocacy center who are not enrolled due to coverage under
13another group health policy or plan may enroll in the event of
14a qualifying change in status, special enrollment, or special
15circumstance as defined by the Director or during the annual
16Benefit Choice Period. A participating child advocacy center
17may also elect to cover its annuitants. Dependent coverage
18shall be offered on an optional basis, with the costs paid by
19the child advocacy center, its employees, or some combination
20of the 2 as determined by the child advocacy center. The child
21advocacy center shall be responsible for timely collection and
22transmission of dependent premiums.
23 The Director shall annually determine rates of payment,
24subject to the following constraints:
25 (1) In the first year of coverage, the rates shall be
26 equal to the amount normally charged to State employees for

HB0452- 24 -LRB100 04751 RJF 14758 b
1 elected optional coverages or for enrolled dependents
2 coverages or other contributory coverages on behalf of its
3 employees, adjusted for differences between State
4 employees and employees of the child advocacy center in
5 age, sex, geographic location, or other relevant
6 demographic variables, plus an amount sufficient to pay for
7 the additional administrative costs of providing coverage
8 to employees of the child advocacy center and their
9 dependents.
10 (2) In subsequent years, a further adjustment shall be
11 made to reflect the actual prior years' claims experience
12 of the employees of the child advocacy center.
13 Monthly payments by the child advocacy center or its
14employees for group health insurance shall be deposited into
15the Local Government Health Insurance Reserve Fund.
16(Source: P.A. 97-695, eff. 7-1-12; 98-488, eff. 8-16-13.)
17 (5 ILCS 375/10.5 new)
18 Sec. 10.5. Ending State-funded benefits for retired
19elected officials.
20 (a) For the purposes of this Section, "retired elected
21official" means an annuitant under Article 2 of the Illinois
22Pension Code, a person receiving a survivor's annuity under
23Article 2 of the Pension Code, or a member, not otherwise
24covered by this Act, who has retired as a participating member
25under Article 2 of the Pension Code but is ineligible for the

HB0452- 25 -LRB100 04751 RJF 14758 b
1retirement annuity under Section 2-119 of the Illinois Pension
2Code.
3 (b) Notwithstanding any other provision of law, on and
4after the effective date of this amendatory Act of the 100th
5General Assembly, the State shall not pay or otherwise make
6contributions toward the costs of any group life insurance
7program or program of health benefits provided under this Act
8for retired elected officials.
9 (c) Notwithstanding any other provision of law, a retired
10elected official enrolled in any group life insurance program
11or program of health benefits provided under this Act shall pay
12the entirety of the cost of coverage, unless he or she has
13waived or terminated coverage under subsection (d) of this
14Section. The cost of coverage shall be determined by the
15Director. Nothing in this Section shall be construed to prevent
16any retired elected official from receiving group health or
17life insurance benefits under this Act, where that retired
18elected official contributes the entirety of the cost of
19coverage.
20 (d) Any retired elected official may waive or terminate
21coverage in the program of health benefits or group life
22insurance. Any retired elected official who has waived or
23terminated coverage may enroll or re-enroll in the program of
24group health benefits or group life insurance only during the
25annual benefit choice period, as determined by the Director;
26except that in the event of termination of coverage due to

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1nonpayment of premiums, the retired elected official may not
2re-enroll in the program.
3 Section 99. Effective date. This Act takes effect upon
4becoming law.
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