SB 2002 — ST GROUP INS-LOCAL GOVT UNITS

*LRB09517204JAM43264b* SB2002 95THEngrossed GENERALLRB095 ASSEMBLY17204 StateJAM of43264 Illinoisb andAN 2008ACT SB2002concerning Introducedgovernment. 2/7/2008, by Sen.

William R.

Haine SYNOPSIS AS INTRODUCED:

ILCS 375/10 from Ch.

127, par.

530 Amends the State Employees Group Insurance Act of 1971.

With respect to a unit of local government, school district, or rehabilitation facility permits enrollment of less than 100% of employees if those not enrolled are covered under the Act’s plan or another plan as spouses or dependents (now, permits less than 100% enrollment if those not enrolled are covered under the Act’s plan or another plan as spouses or dependents and at least 85% of the unit’s, district’s, or facility’s employees are enrolled in coverage under the Act’s plan).

Effective immediately.

LRB095 17204 JAM 43264 b A BILL FOR SB2002 LRB095 17204 JAM 43264 b AN ACT concerning government.

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 SB2002 Engrossed - 2 - LRB095 17204 JAM 43264 b 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;

(a-1) Beginning January 1, 1998, for each person who becomes a new SERS annuitant and participates in the basic program of group health benefits, the State shall contribute toward the cost of the annuitant’s coverage under the basic SB2002 Engrossed - 3 - LRB095 17204 JAM 43264 b program of group health benefits an amount equal to 5% of that cost for each full year of creditable service upon which the annuitant’s retirement annuity is based, up to a maximum of 100% for an annuitant with 20 or more years of creditable service.

The remainder of the cost of the new SERS survivor’s coverage under the basic program of group health benefits shall be the responsibility of SB2002 Engrossed - 4 - LRB095 17204 JAM 43264 b the survivor.

(a-5) Beginning January 1, 1998, for each person who becomes a new SURS survivor and participates in the basic program of group health benefits, the State shall contribute toward the cost of the survivor’s coverage under the basic program of group health benefits an amount equal to 5% of that cost for each full year of the deceased employee’s or deceased annuitant’s creditable service in the State Universities SB2002 Engrossed - 5 - LRB095 17204 JAM 43264 b Retirement System on the date of death, up to a maximum of 100% for a survivor of an employee or annuitant with 20 or more years of creditable service.

(a-7) Beginning July 1, 1998, for each person who becomes a new TRS State survivor and participates in the basic program of group health benefits, the State shall contribute toward the cost of the survivor’s coverage under the basic program of group health benefits an amount equal to 5% of that cost for each full year of the deceased employee’s or deceased SB2002 Engrossed - 6 - LRB095 17204 JAM 43264 b annuitant’s creditable service as a teacher as defined in paragraph (2), (3), or (5) of Section 16-106 of the Illinois Pension Code on the date of death, up to a maximum of 100%;

(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 SB2002 Engrossed - 7 - LRB095 17204 JAM 43264 b eligible.

The transferred moneys, and interest accrued SB2002 Engrossed - 8 - LRB095 17204 JAM 43264 b 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.

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 SB2002 Engrossed - 9 - LRB095 17204 JAM 43264 b system or benefits under the Workers’ Compensation or Occupational Disease Act.

(g) The State shall not pay the cost of the basic SB2002 Engrossed - 10 - LRB095 17204 JAM 43264 b 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.

To participate, SB2002 Engrossed - 11 - LRB095 17204 JAM 43264 b 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 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% 85% 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% 85% 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 SB2002 Engrossed - 12 - LRB095 17204 JAM 43264 b 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.

(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 SB2002 Engrossed - 13 - LRB095 17204 JAM 43264 b 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.

The Local Government Health Insurance Reserve Fund is hereby created as a nonappropriated trust fund to be held SB2002 Engrossed - 14 - LRB095 17204 JAM 43264 b outside the State Treasury, with the State Treasurer as custodian.

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 SB2002 Engrossed - 15 - LRB095 17204 JAM 43264 b 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% 85% of the employees are enrolled and the rehabilitation facility remits the entire cost of providing coverage to those employees.

(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 SB2002 Engrossed - 16 - LRB095 17204 JAM 43264 b 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.

SB2002 Engrossed - 17 - LRB095 17204 JAM 43264 b The Director shall annually determine rates of payment, subject to the following constraints:

The community college SB2002 Engrossed - 18 - LRB095 17204 JAM 43264 b must execute a 2-year contract to participate in the Local Government Health Plan.

The child advocacy center shall not be required to enroll those of its employees who are covered spouses or dependents under the plan SB2002 Engrossed - 19 - LRB095 17204 JAM 43264 b 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 or (2) at least 50% of the employees are enrolled.

Dependent coverage shall be offered on an optional SB2002 - 19 - LRB095 17204 JAM 43264 b 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.

(2) In subsequent years, a further adjustment shall be SB2002 Engrossed - 20 - LRB095 17204 JAM 43264 b made to reflect the actual prior years’ claims experience of the employees of the child advocacy center.

SB2002 - 20 - LRB095 17204 JAM 43264 b 1-11-08.) Section 99.