Bill Text: IL SB1251 | 2011-2012 | 97th General Assembly | Introduced

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Bill Title: Amends the Illinois Insurance Code. In the provision concerning firemen's continuance privilege, changes the definition of "retirement or disability period" to include the period when the disabled or retired fireman, if not enrolled in the municipal group insurance plan at the time of disability or retirement, may elect to enroll in the municipal group insurance plan during open enrollment. Provides that the disabled or retired fireman, if not enrolled in the municipal group insurance plan at the time of disability or retirement, may elect to enroll during open enrollment but not after the fireman becomes eligible for federal Medicare coverage and not more than once. Provides that the fireman must be insurable and must pay the cost of the insurance premium in order to reenter the insurance plan. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2013-01-08 - Session Sine Die [SB1251 Detail]

Download: Illinois-2011-SB1251-Introduced.html

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97TH GENERAL ASSEMBLY State of Illinois 2011 and 2012 SB1251 Introduced 2/8/2011, by Sen. Michael W. Frerichs SYNOPSIS AS INTRODUCED:
215 ILCS 5/367f from Ch. 73, par. 979f
Amends the Illinois Insurance Code. In the provision concerning firemen's continuance privilege, changes the definition of "retirement or disability period" to include the period when the disabled or retired fireman, if not enrolled in the municipal group insurance plan at the time of disability or retirement, may elect to enroll in the municipal group insurance plan during open enrollment. Provides that the disabled or retired fireman, if not enrolled in the municipal group insurance plan at the time of disability or retirement, may elect to enroll during open enrollment but not after the fireman becomes eligible for federal Medicare coverage and not more than once. Provides that the fireman must be insurable and must pay the cost of the insurance premium in order to reenter the insurance plan. Effective immediately.
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A BILL FOR
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AN ACT concerning insurance.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Insurance Code is amended by
changing Section 367f as follows:
(215 ILCS 5/367f) (from Ch. 73, par. 979f)
Sec. 367f. Firemen's continuance privilege. As used in this
Section:
1. The terms "municipality", "deferred pensioner" and
"creditable service" shall have the meaning ascribed to such
terms by Sections 4-103, 4-105a and 4-108, respectively, of the
Illinois Pension Code, as now or hereafter amended.
2. The terms "fireman" and "firemen" shall have the meaning
ascribed to the term "firefighter" by Section 4-106 of the
Illinois Pension Code, and include those persons under the
coverage of Article 4 of that Code, as heretofore or hereafter
amended.
3. The "retirement or disability period" of a fireman means
the period:
a. which begins on the day the fireman is removed from
a municipality's fire department payroll because of the
occurrence of any of the following events, to wit: (i) the
fireman retires as a deferred pensioner under Section

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4-105a of the Illinois Pension Code, (ii) the fireman
retires from active service as a fireman with an attained
age and accumulated creditable service which together
qualify the fireman for immediate receipt of retirement
pension benefits under Section 4-109 of the Illinois
Pension Code, or (iii) the fireman's disability is
established under Section 4-112 of the Illinois Pension
Code; and
b. which ends on the first to occur of any of the
following events, to wit: (i) the fireman's reinstatement
or reentry into active service on the municipality's fire
department as provided for under Article 4 of the Illinois
Pension Code, (ii) the fireman's exercise of any refund
option available under Section 4-116 of the Illinois
Pension Code, (iii) the fireman's loss pursuant to Section
4-138 of the Illinois Pension Code of any benefits provided
for in Article 4 of that Code, or (iv) the fireman's death
or -- if at the time of the fireman's death the fireman is
survived by a spouse who, in that capacity, is entitled to
receive a surviving spouse's monthly pension pursuant to
Article 4 of the Illinois Pension Code -- then the death or
remarriage of that spouse; and .
c. during which, notwithstanding subsections 3a or 3b
of this Section, the disabled or retired fireman, if not
enrolled in the municipal group insurance plan at the time
of disability or retirement, may elect to enroll in the

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municipal group insurance plan during an open enrollment
period; the disabled or retired fireman, if not enrolled in
the municipal group insurance plan at the time of
disability or retirement, may elect to enroll in the
municipal group insurance plan during an open enrollment
period but not after the fireman becomes eligible for
federal Medicare coverage and not more than once; the
fireman must be insurable and must pay the cost of the
insurance premium at a rate set in accordance with this
Code in order to reenter the municipal group insurance
plan.
No policy of group accident and health insurance under
which firemen employed by a municipality are insured for their
individual benefit shall be issued or delivered in this State
to any municipality unless such group policy provides for the
election of continued group insurance coverage for the
retirement or disability period of each fireman or an election
exercised under subsection 3c of this Section during any open
enrollment period who is insured under the provisions of the
group policy on the day immediately preceding the day on which
the retirement or disability period of such fireman begins. So
long as any required premiums for continued group insurance
coverage are paid in accordance with the provisions of the
group policy, an election made pursuant to this Section shall
provide continued group insurance coverage for a fireman
throughout the retirement or disability period of the fireman

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and, unless the fireman otherwise elects and subject to any
other provisions of the group policy which relate either to the
provision or to the termination of dependents' coverage and
which are not inconsistent with this Section, for any
dependents of the fireman who are insured under the group
policy on the day immediately preceding the day on which the
retirement or disability period of the fireman begins;
provided, however, that when such continued group insurance
coverage is in effect with respect to a fireman on the date of
the fireman's death but the retirement or disability period of
the fireman does not end with such fireman's death, then the
deceased fireman's surviving spouse upon whose death or
remarriage such retirement or disability period will end shall
be entitled, without further election and upon payment of any
required premiums in accordance with the provisions of the
group policy, to maintain such continued group insurance
coverage in effect until the end of such retirement or
disability period. Continued group insurance coverage shall be
provided in accordance with this Section at the same premium
rate from time to time charged for equivalent coverage provided
under the group policy with respect to covered firemen whose
retirement or disability period has not begun, and no
distinction or discrimination in the amount or rate of premiums
or in any waiver of premium or other benefit provision shall be
made between continued group insurance coverage elected
pursuant to this Section and equivalent coverage provided to

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firemen under the group policy other than pursuant to the
provisions of this Section; provided that no municipality shall
be required by reason of any provision of this Section to pay
any group insurance premium other than one that may be
negotiated in a collective bargaining agreement. If a person
electing continued coverage under this Section becomes
eligible for medicare coverage, benefits under the group policy
may continue as a supplement to the medicare coverage upon
payment of any required premiums to maintain the benefits of
the group policy as supplemental coverage.
Within 15 days of the beginning of the retirement or
disability period of any fireman entitled to elect continued
group insurance coverage under any group policy affected by
this Section, the municipality last employing such fireman
shall give written notice of such beginning by certified mail,
return receipt requested to the insurance company issuing such
policy. The notice shall include the fireman's name and last
known place of residence and the beginning date of the
fireman's retirement or disability period.
Within 15 days of the date of receipt of such notice from
the municipality, the insurance company by certified mail,
return receipt requested, shall give written notice to the
fireman at the fireman's last known place of residence that
coverage under the group policy may be continued for the
retirement or disability period of the fireman as provided in
this Section. Such notice shall set forth: (i) a statement of

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election to be filed by the fireman if the fireman wishes to
continue such group insurance coverage, (ii) the amount of
monthly premium, including a statement of the portion of such
monthly premium attributable to any dependents' coverage which
the fireman may elect, and (iii) instructions as to the return
of the election form to the insurance company issuing such
policy. Election shall be made, if at all, by returning the
statement of election to the insurance company by certified
mail, return receipt requested within 15 days after having
received it.
If the fireman elects to continue coverage, it shall be the
obligation of the fireman to pay the monthly premium directly
to the municipality which shall forward it to the insurance
company issuing the group insurance policy, or as otherwise
directed by the insurance company; provided, however, that the
fireman shall be entitled to designate on the statement of
election required to be filed with the insurance company that
the total monthly premium, or such portion thereof as is not
contributed by a municipality, be deducted by a Firefighter's
Pension Fund from any monthly pension payment otherwise payable
to or on behalf of the fireman pursuant to Article 4 of the
Illinois Pension Code, and be remitted by such Pension Fund to
the insurance company. The portion, if any, of the monthly
premium contributed by a municipality for such continued group
insurance coverage shall be paid by the municipality directly
to the insurance company issuing the group insurance policy, or

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as otherwise directed by the insurance company. Such continued
group insurance coverage shall relate back to the beginning of
the fireman's retirement or disability period.
The amendment, renewal or extension of any group insurance
policy affected by this Section shall be deemed to be the
issuance of a new policy of insurance for purposes of this
Section.
In the event that a municipality makes a program of
accident, health, hospital or medical benefits available to its
firemen through self-insurance, or by participation in a pool
or reciprocal insurer, or by contract in a form other than a
policy of group insurance with one or more medical service
plans, health care service corporations, health maintenance
organizations, or any other professional corporations or plans
under which health care or reimbursement for the costs thereof
is provided, whether the cost of such benefits is borne by the
municipality or the firemen or both, such firemen and their
surviving spouses shall have the same right to elect continued
coverage under such program of benefits as they would have if
such benefits were provided by a policy of group accident and
health insurance. In such cases, the notice of right to elect
continued coverage shall be sent by the municipality; the
statement of election shall be sent to the municipality; and
references to the required premium shall refer to that portion
of the cost of such benefits which is not borne by the
municipality, either voluntarily or pursuant to the provisions

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of a collective bargaining agreement. In the case of a
municipality providing such benefits through self-insurance or
participation in a pool or reciprocal insurer, the right to
elect continued coverage which is provided by this paragraph
shall be implemented and made available to the firemen of the
municipality and qualifying surviving spouses not later than
July 1, 1985.
The amendment, renewal or extension of any such contract in
a form other than a policy of group insurance policy shall be
deemed the formation of a new contract for the purposes of this
Section.
This Section shall not limit the exercise of any conversion
privileges available under Section 367e.
Pursuant to paragraphs (h) and (i) of Section 6 of Article
VII of the Illinois Constitution, this Section specifically
denies and limits the exercise by a home rule unit of any power
which is inconsistent with this Section and all existing laws
and ordinances which are inconsistent with this Section are
hereby superseded. This Section does not preempt the concurrent
exercise by home rule units of powers consistent herewith.
The Division of Insurance of the Department of Financial
and Professional Regulation shall enforce the provisions of
this Section, including provisions relating to municipality
self-insured benefit plans.
(Source: P.A. 94-858, eff. 6-15-06.)
Section 99. Effective date. This Act takes effect upon

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becoming law.