Bill Text: IL HB5830 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: Amends the State Employees Group Insurance Act of 1971. Provides that, notwithstanding any other provisions of the Act, the Department of Central Management Services, in consultation with and subject to the approval of the Chief Procurement Officer, shall contract or make otherwise available a Medicare plan to supplement Medicare Parts A and B and to provide coverage compliant with Medicare Part D for Medicare-primary members and their Medicare-primary dependents. On January 1, 2027, requires the Department to begin procurement of supplemental Medicare plans to be effective on January 1, 2028. Provides that the Department shall award contracts to provide a minimum of 2 supplemental Medicare plan options if 2 or more responsive bidders submit bids. Effective immediately.

Sponsorship: Partisan Bill (Democrat 4)

Status: (Introduced - Dead) 2026-10-29 - Added Chief Co-Sponsor Rep. Sue Scherer [HB5830 Detail]

Download: Illinois-2025-HB5830-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026HB5830 Introduced , by Rep. Katie Stuart SYNOPSIS AS INTRODUCED:
5 ILCS 375/5 from Ch. 127, par. 525
Amends the State Employees Group Insurance Act of 1971. Provides that, notwithstanding any other provisions of the Act, the Department of Central Management Services, in consultation with and subject to the approval of the Chief Procurement Officer, shall contract or make otherwise available a Medicare plan to supplement Medicare Parts A and B and to provide coverage compliant with Medicare Part D for Medicare-primary members and their Medicare-primary dependents. On January 1, 2027, requires the Department to begin procurement of supplemental Medicare plans to be effective on January 1, 2028. Provides that the Department shall award contracts to provide a minimum of 2 supplemental Medicare plan options if 2 or more responsive bidders submit bids. Effective immediately.
LRB104 23661 BAB 40164 b
A BILL FOR
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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 Section 5 as follows:
(5 ILCS 375/5) (from Ch. 127, par. 525)
Sec. 5. Employee benefits; declaration of State policy.
The General Assembly declares that it is the policy of the
State and in the best interest of the State to assure quality
benefits to members and their dependents under this Act. The
implementation of this policy depends upon, among other
things, stability and continuity of coverage, care, and
services under benefit programs for members and their
dependents. Specifically, but without limitation, members
should have continued access, on substantially similar terms
and conditions, to trusted family health care providers with
whom they have developed long-term relationships through a
benefit program under this Act. Therefore, the Director must
administer this Act consistent with that State policy, but may
consider affordability, cost of coverage and care, and
competition among health insurers and providers. All contracts
for provision of employee benefits, including those portions
of any proposed collective bargaining agreement that would

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require implementation through contracts entered into under
this Act, are subject to the following requirements:
(i) By April 1 of each year, the Director must report
and provide information to the Commission concerning the
status of the employee benefits program to be offered for
the next fiscal year. Information includes, but is not
limited to, documents, reports of negotiations, bid
invitations, requests for proposals, specifications,
copies of proposed and final contracts or agreements, and
any other materials concerning contracts or agreements for
the employee benefits program. By the first of each month
thereafter, the Director must provide updated, and any
new, information to the Commission until the employee
benefits program for the next fiscal year is determined.
In addition to these monthly reporting requirements, at
any time the Commission makes a written request, the
Director must promptly, but in no event later than 5
business days after receipt of the request, provide to the
Commission any additional requested information in the
possession of the Director concerning employee benefits
programs. The Commission may waive any of the reporting
requirements of this item (i) upon the written request by
the Director. Any waiver granted under this item (i) must
be in writing. Nothing in this item is intended to
abrogate any attorney-client privilege.
(ii) Within 30 days after notice of the awarding or

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letting of a contract has appeared in the Illinois
Procurement Bulletin in accordance with subsection (b) of
Section 15-25 of the Illinois Procurement Code, the
Commission may request in writing from the Director and
the Director shall promptly, but in no event later than 5
business days after receipt of the request, provide to the
Commission information in the possession of the Director
concerning the proposed contract. Nothing in this item is
intended to waive or abrogate any privilege or right of
confidentiality authorized by law.
(iii) Except as otherwise provided in this item (iii),
no contract subject to this Section may be entered into
until the 30-day period described in item (ii) has
expired, unless the Director requests in writing that the
Commission waive the period and the Commission grants the
waiver in writing. This item (iii) does not apply to any
contract entered into after the effective date of this
amendatory Act of the 98th General Assembly and through
January 1, 2014 to provide a program of group health
benefits for Medicare-primary members and their
Medicare-primary dependents that is comparable in
stability and continuity of coverage, care, and services
to the program of health benefits offered to other members
and their dependents under this Act.
(iv) If the Director seeks to make any substantive
modification to any provision of a proposed contract after

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it is submitted to the Commission in accordance with item
(ii), the modified contract shall be subject to the
requirements of items (ii) and (iii) unless the Commission
agrees, in writing, to a waiver of those requirements with
respect to the modified contract.
(v) By the date of the beginning of the annual benefit
choice period, the Director must transmit to the
Commission a copy of each final contract or agreement for
the employee benefits program to be offered for the next
fiscal year. The annual benefit choice period for an
employee benefits program must begin on May 1 of the
fiscal year preceding the year for which the program is to
be offered. If, however, in any such preceding fiscal year
collective bargaining over employee benefit programs for
the next fiscal year remains pending on April 15, the
beginning date of the annual benefit choice period shall
be not later than 15 days after ratification of the
collective bargaining agreement.
(vi) The Director must provide the reports,
information, and contracts required under items (i), (ii),
(iv), and (v) by electronic or other means satisfactory to
the Commission. Reports, information, and contracts in the
possession of the Commission pursuant to items (i), (ii),
(iv), and (v) are exempt from disclosure by the Commission
and its members and employees under the Freedom of
Information Act. Reports, information, and contracts

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received by the Commission pursuant to items (i), (ii),
(iv), and (v) must be kept confidential by and may not be
disclosed or used by the Commission or its members or
employees if such disclosure or use could compromise the
fairness or integrity of the procurement, bidding, or
contract process. Commission meetings, or portions of
Commission meetings, in which reports, information, and
contracts received by the Commission pursuant to items
(i), (ii), (iv), and (v) are discussed must be closed if
disclosure or use of the report or information could
compromise the fairness or integrity of the procurement,
bidding, or contract process.
All contracts entered into under this Section are subject
to appropriation and shall comply with Section 20-60(b) of the
Illinois Procurement Code (30 ILCS 500/20-60(b)).
The Director shall contract or otherwise make available
group life insurance, health benefits and other employee
benefits to eligible members and, where elected, their
eligible dependents. Any contract or, if applicable, contracts
or other arrangement for provision of benefits shall be on
terms consistent with State policy and based on, but not
limited to, such criteria as administrative cost, service
capabilities of the carrier or other contractor and premiums,
fees or charges as related to benefits.
Notwithstanding any other provisions of this Act, by
January 1, 2014, the Department of Central Management

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Services, in consultation with and subject to the approval of
the Chief Procurement Officer, shall contract or make
otherwise available a Medicare plan to supplement Medicare
Parts A and B and to provide coverage compliant with Medicare
Part D program of group health benefits for Medicare-primary
members and their Medicare-primary dependents. The Director
may procure a single contract or multiple contracts that
provide a supplemental Medicare plan program of group health
benefits that is comparable in stability and continuity of
coverage, care, and services to the program of health benefits
offered to other members and their dependents under this Act.
The initial procurement of a contract or contracts under this
paragraph is not subject to the provisions of the Illinois
Procurement Code, except for Sections 20-60, 20-65, 20-70, and
20-160 and Article 50 of that Code, provided that the Chief
Procurement Officer may, in writing with justification, waive
any certification required under Article 50. On January 1,
2027, the Department shall begin procurement of supplemental
Medicare plans to be effective on January 1, 2028. Should
there be 2 or more responsive bidders, as defined in Section
1-15.85 of the Illinois Procurement Code, to this or any
future procurement of supplemental Medicare plans, the
Department shall award contracts to provide a minimum of 2
supplemental Medicare plan options to Medicare-primary members
and their Medicare-primary dependents.
The Director may prepare and issue specifications for

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group life insurance, health benefits, other employee benefits
and administrative services for the purpose of receiving
proposals from interested parties.
The Director is authorized to execute a contract, or
contracts, for the programs of group life insurance, health
benefits, other employee benefits and administrative services
authorized by this Act (including, without limitation,
prescription drug benefits). All of the benefits provided
under this Act may be included in one or more contracts, or the
benefits may be classified into different types with each type
included under one or more similar contracts with the same or
different companies.
The term of any contract may not extend beyond 5 fiscal
years. Upon recommendation of the Commission, the Director may
exercise renewal options of the same contract for up to a
period of 5 years. Any increases in premiums, fees or charges
requested by a contractor whose contract may be renewed
pursuant to a renewal option contained therein, must be
justified on the basis of (1) audited experience data, (2)
increases in the costs of health care services provided under
the contract, (3) contractor performance, (4) increases in
contractor responsibilities, or (5) any combination thereof.
Any contractor shall agree to abide by all requirements of
this Act and Rules and Regulations promulgated and adopted
thereto; to submit such information and data as may from time
to time be deemed necessary by the Director for effective

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administration of the provisions of this Act and the programs
established hereunder, and to fully cooperate in any audit.
(Source: P.A. 98-19, eff. 6-10-13.)
Section 99. Effective date. This Act takes effect upon
becoming law.