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91_SB0854sam001
LRB9105994EGfgam01
1 AMENDMENT TO SENATE BILL 854
2 AMENDMENT NO. . Amend Senate Bill 854 by replacing
3 the title with the following:
4 "AN ACT concerning retired teachers."; and
5 by replacing everything after the enacting clause with the
6 following:
7 "Section 5. The State Employees Group Insurance Act of
8 1971 is amended by changing Sections 6.5 and 10 as follows:
9 (5 ILCS 375/6.5)
10 Sec. 6.5. Health benefits for TRS benefit recipients and
11 TRS dependent beneficiaries.
12 (a) Purpose. It is the purpose of this amendatory Act
13 of 1995 to transfer the administration of the program of
14 health benefits established for benefit recipients and their
15 dependent beneficiaries under Article 16 of the Illinois
16 Pension Code to the Department of Central Management
17 Services.
18 (b) Transition provisions. The Board of Trustees of the
19 Teachers' Retirement System shall continue to administer the
20 health benefit program established under Article 16 of the
21 Illinois Pension Code through December 31, 1995. Beginning
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1 January 1, 1996, the Department of Central Management
2 Services shall be responsible for administering a program of
3 health benefits for TRS benefit recipients and TRS dependent
4 beneficiaries under this Section. The Department of Central
5 Management Services and the Teachers' Retirement System shall
6 cooperate in this endeavor and shall coordinate their
7 activities so as to ensure a smooth transition and
8 uninterrupted health benefit coverage.
9 (c) Eligibility. All persons who were enrolled in the
10 Article 16 program at the time of the transfer shall be
11 eligible to participate in the program established under this
12 Section without any interruption or delay in coverage or
13 limitation as to pre-existing medical conditions.
14 Eligibility to participate shall be determined by the
15 Teachers' Retirement System. Eligibility information shall
16 be communicated to the Department of Central Management
17 Services in a format acceptable to the Department.
18 (d) Coverage. The level of health benefits provided
19 under this Section shall be similar to the level of benefits
20 provided by the program previously established under Article
21 16 of the Illinois Pension Code; except that beginning in
22 State fiscal year 2001, the benefits and participant costs
23 for the following listed benefit areas shall be substantially
24 the same as for the program of basic health benefits provided
25 under this Act for retired State employees:
26 For Managed Health Care Plans:
27 (i) inpatient admission copayment.
28 For the Major Medical Plan:
29 (1) annual deductible;
30 (2) general out-of-pocket maximum;
31 (3) Medicare coordination of benefit.
32 Group life insurance benefits are not included in the
33 benefits to be provided to TRS benefit recipients and TRS
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1 dependent beneficiaries under this Act.
2 The program of health benefits under this Section may
3 include any or all of the benefit limitations, including but
4 not limited to a reduction in benefits based on eligibility
5 for federal medicare benefits, that are provided under
6 subsection (a) of Section 6 of this Act for other health
7 benefit programs under this Act.
8 (e) Insurance rates and premiums. The Director shall
9 determine the insurance rates and premiums for TRS benefit
10 recipients and TRS dependent beneficiaries. For Fiscal Year
11 1996, the premium shall be equal to the premium actually
12 charged in Fiscal Year 1995. In subsequent years, the
13 premium shall never be lower than the premium charged in
14 Fiscal Year 1995. Rates and premiums may be based in part on
15 age and eligibility for federal medicare coverage.
16 The cost of health benefits under the program shall be
17 paid as follows:
18 (1) For a TRS benefit recipient selecting a managed
19 care program, up to 75% of the total insurance rate shall
20 be paid from the Teacher Health Insurance Security Fund.
21 (2) For a TRS benefit recipient selecting the major
22 medical coverage program, up to 50% of the total
23 insurance rate shall be paid from the Teacher Health
24 Insurance Security Fund if a managed care program is
25 accessible, as determined by the Teachers' Retirement
26 System.
27 (3) For a TRS benefit recipient selecting the major
28 medical coverage program, up to 75% of the total
29 insurance rate shall be paid from the Teacher Health
30 Insurance Security Fund if a managed care program is not
31 accessible, as determined by the Teachers' Retirement
32 System.
33 (4) The balance of the rate of insurance, including
34 the entire premium of any coverage for TRS dependent
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1 beneficiaries that has been elected, shall be paid by
2 deductions authorized by the TRS benefit recipient to be
3 withheld from his or her monthly annuity or benefit
4 payment from the Teachers' Retirement System; except that
5 (i) if the balance of the cost of coverage exceeds the
6 amount of the monthly annuity or benefit payment, the
7 difference shall be paid directly to the Teachers'
8 Retirement System by the TRS benefit recipient, and (ii)
9 all or part of the balance of the cost of coverage may,
10 at the school board's option, be paid to the Teachers'
11 Retirement System by the school board of the school
12 district from which the TRS benefit recipient retired, in
13 accordance with Section 10-22.3b of the School Code. The
14 Teachers' Retirement System shall promptly deposit all
15 moneys withheld by or paid to it under this subdivision
16 (e)(4) into the Teacher Health Insurance Security Fund.
17 These moneys shall not be considered assets of the
18 Retirement System.
19 (f) Financing. Beginning July 1, 1995, all revenues
20 arising from the administration of the health benefit
21 programs established under Article 16 of the Illinois Pension
22 Code or this Section shall be deposited into the Teacher
23 Health Insurance Security Fund, which is hereby created as a
24 nonappropriated trust fund to be held outside the State
25 Treasury, with the State Treasurer as custodian. Any
26 interest earned on moneys in the Teacher Health Insurance
27 Security Fund shall be deposited into the Fund.
28 Moneys in the Teacher Health Insurance Security Fund
29 shall be used only to pay the costs of the health benefit
30 program established under this Section, including associated
31 administrative costs, and the costs associated with the
32 health benefit program established under Article 16 of the
33 Illinois Pension Code, as authorized in this Section.
34 Beginning July 1, 1995, the Department of Central Management
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1 Services may make expenditures from the Teacher Health
2 Insurance Security Fund for those costs.
3 After other funds authorized for the payment of the costs
4 of the health benefit program established under Article 16 of
5 the Illinois Pension Code are exhausted and until January 1,
6 1996 (or such later date as may be agreed upon by the
7 Director of Central Management Services and the Secretary of
8 the Teachers' Retirement System), the Secretary of the
9 Teachers' Retirement System may make expenditures from the
10 Teacher Health Insurance Security Fund as necessary to pay up
11 to 75% of the cost of providing health coverage to eligible
12 benefit recipients (as defined in Sections 16-153.1 and
13 16-153.3 of the Illinois Pension Code) who are enrolled in
14 the Article 16 health benefit program and to facilitate the
15 transfer of administration of the health benefit program to
16 the Department of Central Management Services.
17 (g) Contract for benefits. The Director shall by
18 contract, self-insurance, or otherwise make available the
19 program of health benefits for TRS benefit recipients and
20 their TRS dependent beneficiaries that is provided for in
21 this Section. The contract or other arrangement for the
22 provision of these health benefits shall be on terms deemed
23 by the Director to be in the best interest of the State of
24 Illinois and the TRS benefit recipients based on, but not
25 limited to, such criteria as administrative cost, service
26 capabilities of the carrier or other contractor, and the
27 costs of the benefits.
28 (h) Continuation of program. It is the intention of the
29 General Assembly that the program of health benefits provided
30 under this Section be maintained on an ongoing, affordable
31 basis. The program of health benefits provided under this
32 Section may be amended by the State and is not intended to be
33 a pension or retirement benefit subject to protection under
34 Article XIII, Section 5 of the Illinois Constitution.
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1 (Source: P.A. 89-21, eff. 6-21-95; 89-25, eff. 6-21-95.)
2 (5 ILCS 375/10) (from Ch. 127, par. 530)
3 Sec. 10. Payments by State; premiums.
4 (a) The State shall pay the cost of basic
5 non-contributory group life insurance and, subject to member
6 paid contributions set by the Department or required by this
7 Section, the basic program of group health benefits on each
8 eligible member, except a member, not otherwise covered by
9 this Act, who has retired as a participating member under
10 Article 2 of the Illinois Pension Code but is ineligible for
11 the retirement annuity under Section 2-119 of the Illinois
12 Pension Code, and part of each eligible member's and retired
13 member's premiums for health insurance coverage for enrolled
14 dependents as provided by Section 9. The State shall pay the
15 cost of the basic program of group health benefits only after
16 benefits are reduced by the amount of benefits covered by
17 Medicare for all retired members and retired dependents aged
18 65 years or older who are entitled to benefits under Social
19 Security or the Railroad Retirement system or who had
20 sufficient Medicare-covered government employment except that
21 such reduction in benefits shall apply only to those retired
22 members or retired dependents who (1) first become eligible
23 for such Medicare coverage on or after July 1, 1992; or (2)
24 remain eligible for, but no longer receive Medicare coverage
25 which they had been receiving on or after July 1, 1992. The
26 Department may determine the aggregate level of the State's
27 contribution on the basis of actual cost of medical services
28 adjusted for age, sex or geographic or other demographic
29 characteristics which affect the costs of such programs.
30 (a-1) Beginning January 1, 1998, for each person who
31 becomes a new SERS annuitant and participates in the basic
32 program of group health benefits, the State shall contribute
33 toward the cost of the annuitant's coverage under the basic
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1 program of group health benefits an amount equal to 5% of
2 that cost for each full year of creditable service upon which
3 the annuitant's retirement annuity is based, up to a maximum
4 of 100% for an annuitant with 20 or more years of creditable
5 service. The remainder of the cost of a new SERS annuitant's
6 coverage under the basic program of group health benefits
7 shall be the responsibility of the annuitant.
8 (a-2) Beginning January 1, 1998, for each person who
9 becomes a new SERS survivor and participates in the basic
10 program of group health benefits, the State shall contribute
11 toward the cost of the survivor's coverage under the basic
12 program of group health benefits an amount equal to 5% of
13 that cost for each full year of the deceased employee's or
14 deceased annuitant's creditable service in the State
15 Employees' Retirement System of Illinois on the date of
16 death, up to a maximum of 100% for a survivor of an employee
17 or annuitant with 20 or more years of creditable service.
18 The remainder of the cost of the new SERS survivor's coverage
19 under the basic program of group health benefits shall be the
20 responsibility of the survivor.
21 (a-3) Beginning January 1, 1998, for each person who
22 becomes a new SURS annuitant and participates in the basic
23 program of group health benefits, the State shall contribute
24 toward the cost of the annuitant's coverage under the basic
25 program of group health benefits an amount equal to 5% of
26 that cost for each full year of creditable service upon which
27 the annuitant's retirement annuity is based, up to a maximum
28 of 100% for an annuitant with 20 or more years of creditable
29 service. The remainder of the cost of a new SURS annuitant's
30 coverage under the basic program of group health benefits
31 shall be the responsibility of the annuitant.
32 (a-4) Beginning January 1, 1998, for each person who
33 becomes a new SURS retired employee and participates in the
34 basic program of group health benefits, the State shall
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1 contribute toward the cost of the retired employee's coverage
2 under the basic program of group health benefits an amount
3 equal to 5% of that cost for each full year that the retired
4 employee was an employee as defined in Section 3, up to a
5 maximum of 100% for a retired employee who was an employee
6 for 20 or more years. The remainder of the cost of a new
7 SURS retired employee's coverage under the basic program of
8 group health benefits shall be the responsibility of the
9 retired employee.
10 (a-5) Beginning January 1, 1998, for each person who
11 becomes a new SURS survivor and participates in the basic
12 program of group health benefits, the State shall contribute
13 toward the cost of the survivor's coverage under the basic
14 program of group health benefits an amount equal to 5% of
15 that cost for each full year of the deceased employee's or
16 deceased annuitant's creditable service in the State
17 Universities Retirement System on the date of death, up to a
18 maximum of 100% for a survivor of an employee or annuitant
19 with 20 or more years of creditable service. The remainder
20 of the cost of the new SURS survivor's coverage under the
21 basic program of group health benefits shall be the
22 responsibility of the survivor.
23 (a-6) Beginning July 1, 1998, for each person who
24 becomes a new TRS State annuitant and participates in the
25 basic program of group health benefits, the State shall
26 contribute toward the cost of the annuitant's coverage under
27 the basic program of group health benefits an amount equal to
28 5% of that cost for each full year of creditable service as a
29 teacher as defined in paragraph (2), (3), or (5) of Section
30 16-106 of the Illinois Pension Code upon which the
31 annuitant's retirement annuity is based, up to a maximum of
32 100% for an annuitant with 20 or more years of such
33 creditable service. The remainder of the cost of a new TRS
34 State annuitant's coverage under the basic program of group
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1 health benefits shall be the responsibility of the annuitant.
2 (a-7) Beginning July 1, 1998, for each person who
3 becomes a new TRS State survivor and participates in the
4 basic program of group health benefits, the State shall
5 contribute toward the cost of the survivor's coverage under
6 the basic program of group health benefits an amount equal to
7 5% of that cost for each full year of the deceased employee's
8 or deceased annuitant's creditable service as a teacher as
9 defined in paragraph (2), (3), or (5) of Section 16-106 of
10 the Illinois Pension Code on the date of death, up to a
11 maximum of 100% for a survivor of an employee or annuitant
12 with 20 or more years of such creditable service. The
13 remainder of the cost of the new TRS State survivor's
14 coverage under the basic program of group health benefits
15 shall be the responsibility of the survivor.
16 (a-8) A new SERS annuitant, new SERS survivor, new SURS
17 annuitant, new SURS retired employee, new SURS survivor, new
18 TRS State annuitant, or new TRS State survivor may waive or
19 terminate coverage in the program of group health benefits.
20 Any such annuitant, survivor, or retired employee who has
21 waived or terminated coverage may enroll or re-enroll in the
22 program of group health benefits only during the annual
23 benefit choice period, as determined by the Director; except
24 that in the event of termination of coverage due to
25 nonpayment of premiums, the annuitant, survivor, or retired
26 employee may not re-enroll in the program.
27 (a-9) No later than May 1 of each calendar year, the
28 Director of Central Management Services shall certify in
29 writing to the Executive Secretary of the State Employees'
30 Retirement System of Illinois and the Executive Director of
31 the Teachers' Retirement System of the State of Illinois the
32 amounts of the Medicare supplement health care premiums and
33 the amounts of the health care premiums for all other
34 retirees who are not Medicare eligible.
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1 A separate calculation of the premiums based upon the
2 actual cost of each health care plan shall be so certified.
3 The Director of Central Management Services shall provide
4 to the Executive Secretary of the State Employees' Retirement
5 System of Illinois and the Executive Director of the
6 Teachers' Retirement System of the State of Illinois such
7 information, statistics, and other data as they he or she may
8 require to review the premium amounts certified by the
9 Director of Central Management Services.
10 (b) State employees who become eligible for this program
11 on or after January 1, 1980 in positions normally requiring
12 actual performance of duty not less than 1/2 of a normal work
13 period but not equal to that of a normal work period, shall
14 be given the option of participating in the available
15 program. If the employee elects coverage, the State shall
16 contribute on behalf of such employee to the cost of the
17 employee's benefit and any applicable dependent supplement,
18 that sum which bears the same percentage as that percentage
19 of time the employee regularly works when compared to normal
20 work period.
21 (c) The basic non-contributory coverage from the basic
22 program of group health benefits shall be continued for each
23 employee not in pay status or on active service by reason of
24 (1) leave of absence due to illness or injury, (2) authorized
25 educational leave of absence or sabbatical leave, or (3)
26 military leave with pay and benefits. This coverage shall
27 continue until expiration of authorized leave and return to
28 active service, but not to exceed 24 months for leaves under
29 item (1) or (2). This 24-month limitation and the requirement
30 of returning to active service shall not apply to persons
31 receiving ordinary or accidental disability benefits or
32 retirement benefits through the appropriate State retirement
33 system or benefits under the Workers' Compensation or
34 Occupational Disease Act.
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1 (d) The basic group life insurance coverage shall
2 continue, with full State contribution, where such person is
3 (1) absent from active service by reason of disability
4 arising from any cause other than self-inflicted, (2) on
5 authorized educational leave of absence or sabbatical leave,
6 or (3) on military leave with pay and benefits.
7 (e) Where the person is in non-pay status for a period
8 in excess of 30 days or on leave of absence, other than by
9 reason of disability, educational or sabbatical leave, or
10 military leave with pay and benefits, such person may
11 continue coverage only by making personal payment equal to
12 the amount normally contributed by the State on such person's
13 behalf. Such payments and coverage may be continued: (1)
14 until such time as the person returns to a status eligible
15 for coverage at State expense, but not to exceed 24 months,
16 (2) until such person's employment or annuitant status with
17 the State is terminated, or (3) for a maximum period of 4
18 years for members on military leave with pay and benefits and
19 military leave without pay and benefits (exclusive of any
20 additional service imposed pursuant to law).
21 (f) The Department shall establish by rule the extent
22 to which other employee benefits will continue for persons in
23 non-pay status or who are not in active service.
24 (g) The State shall not pay the cost of the basic
25 non-contributory group life insurance, program of health
26 benefits and other employee benefits for members who are
27 survivors as defined by paragraphs (1) and (2) of subsection
28 (q) of Section 3 of this Act. The costs of benefits for
29 these survivors shall be paid by the survivors or by the
30 University of Illinois Cooperative Extension Service, or any
31 combination thereof.
32 (h) Those persons occupying positions with any
33 department as a result of emergency appointments pursuant to
34 Section 8b.8 of the Personnel Code who are not considered
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1 employees under this Act shall be given the option of
2 participating in the programs of group life insurance, health
3 benefits and other employee benefits. Such persons electing
4 coverage may participate only by making payment equal to the
5 amount normally contributed by the State for similarly
6 situated employees. Such amounts shall be determined by the
7 Director. Such payments and coverage may be continued until
8 such time as the person becomes an employee pursuant to this
9 Act or such person's appointment is terminated.
10 (i) Any unit of local government within the State of
11 Illinois may apply to the Director to have its employees,
12 annuitants, and their dependents provided group health
13 coverage under this Act on a non-insured basis. To
14 participate, a unit of local government must agree to enroll
15 all of its employees, who may select coverage under either
16 the State group health insurance plan or a health maintenance
17 organization that has contracted with the State to be
18 available as a health care provider for employees as defined
19 in this Act. A unit of local government must remit the
20 entire cost of providing coverage under the State group
21 health insurance plan or, for coverage under a health
22 maintenance organization, an amount determined by the
23 Director based on an analysis of the sex, age, geographic
24 location, or other relevant demographic variables for its
25 employees, except that the unit of local government shall not
26 be required to enroll those of its employees who are covered
27 spouses or dependents under this plan or another group policy
28 or plan providing health benefits as long as (1) an
29 appropriate official from the unit of local government
30 attests that each employee not enrolled is a covered spouse
31 or dependent under this plan or another group policy or plan,
32 and (2) at least 85% of the employees are enrolled and the
33 unit of local government remits the entire cost of providing
34 coverage to those employees. Employees of a participating
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1 unit of local government who are not enrolled due to coverage
2 under another group health policy or plan may enroll at a
3 later date subject to submission of satisfactory evidence of
4 insurability and provided that no benefits shall be payable
5 for services incurred during the first 6 months of coverage
6 to the extent the services are in connection with any
7 pre-existing condition. A participating unit of local
8 government may also elect to cover its annuitants. Dependent
9 coverage shall be offered on an optional basis, with the
10 costs paid by the unit of local government, its employees, or
11 some combination of the two as determined by the unit of
12 local government. The unit of local government shall be
13 responsible for timely collection and transmission of
14 dependent premiums.
15 The Director shall annually determine monthly rates of
16 payment, subject to the following constraints:
17 (1) In the first year of coverage, the rates shall
18 be equal to the amount normally charged to State
19 employees for elected optional coverages or for enrolled
20 dependents coverages or other contributory coverages, or
21 contributed by the State for basic insurance coverages on
22 behalf of its employees, adjusted for differences between
23 State employees and employees of the local government in
24 age, sex, geographic location or other relevant
25 demographic variables, plus an amount sufficient to pay
26 for the additional administrative costs of providing
27 coverage to employees of the unit of local government and
28 their dependents.
29 (2) In subsequent years, a further adjustment shall
30 be made to reflect the actual prior years' claims
31 experience of the employees of the unit of local
32 government.
33 In the case of coverage of local government employees
34 under a health maintenance organization, the Director shall
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1 annually determine for each participating unit of local
2 government the maximum monthly amount the unit may contribute
3 toward that coverage, based on an analysis of (i) the age,
4 sex, geographic location, and other relevant demographic
5 variables of the unit's employees and (ii) the cost to cover
6 those employees under the State group health insurance plan.
7 The Director may similarly determine the maximum monthly
8 amount each unit of local government may contribute toward
9 coverage of its employees' dependents under a health
10 maintenance organization.
11 Monthly payments by the unit of local government or its
12 employees for group health insurance or health maintenance
13 organization coverage shall be deposited in the Local
14 Government Health Insurance Reserve Fund. The Local
15 Government Health Insurance Reserve Fund shall be a
16 continuing fund not subject to fiscal year limitations. All
17 expenditures from this fund shall be used for payments for
18 health care benefits for local government and rehabilitation
19 facility employees, annuitants, and dependents, and to
20 reimburse the Department or its administrative service
21 organization for all expenses incurred in the administration
22 of benefits. No other State funds may be used for these
23 purposes.
24 A local government employer's participation or desire to
25 participate in a program created under this subsection shall
26 not limit that employer's duty to bargain with the
27 representative of any collective bargaining unit of its
28 employees.
29 (j) Any rehabilitation facility within the State of
30 Illinois may apply to the Director to have its employees,
31 annuitants, and their dependents provided group health
32 coverage under this Act on a non-insured basis. To
33 participate, a rehabilitation facility must agree to enroll
34 all of its employees and remit the entire cost of providing
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1 such coverage for its employees, except that the
2 rehabilitation facility shall not be required to enroll those
3 of its employees who are covered spouses or dependents under
4 this plan or another group policy or plan providing health
5 benefits as long as (1) an appropriate official from the
6 rehabilitation facility attests that each employee not
7 enrolled is a covered spouse or dependent under this plan or
8 another group policy or plan, and (2) at least 85% of the
9 employees are enrolled and the rehabilitation facility remits
10 the entire cost of providing coverage to those employees.
11 Employees of a participating rehabilitation facility who are
12 not enrolled due to coverage under another group health
13 policy or plan may enroll at a later date subject to
14 submission of satisfactory evidence of insurability and
15 provided that no benefits shall be payable for services
16 incurred during the first 6 months of coverage to the extent
17 the services are in connection with any pre-existing
18 condition. A participating rehabilitation facility may also
19 elect to cover its annuitants. Dependent coverage shall be
20 offered on an optional basis, with the costs paid by the
21 rehabilitation facility, its employees, or some combination
22 of the 2 as determined by the rehabilitation facility. The
23 rehabilitation facility shall be responsible for timely
24 collection and transmission of dependent premiums.
25 The Director shall annually determine quarterly rates of
26 payment, subject to the following constraints:
27 (1) In the first year of coverage, the rates shall
28 be equal to the amount normally charged to State
29 employees for elected optional coverages or for enrolled
30 dependents coverages or other contributory coverages on
31 behalf of its employees, adjusted for differences between
32 State employees and employees of the rehabilitation
33 facility in age, sex, geographic location or other
34 relevant demographic variables, plus an amount sufficient
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1 to pay for the additional administrative costs of
2 providing coverage to employees of the rehabilitation
3 facility and their dependents.
4 (2) In subsequent years, a further adjustment shall
5 be made to reflect the actual prior years' claims
6 experience of the employees of the rehabilitation
7 facility.
8 Monthly payments by the rehabilitation facility or its
9 employees for group health insurance shall be deposited in
10 the Local Government Health Insurance Reserve Fund.
11 (k) Any domestic violence shelter or service within the
12 State of Illinois may apply to the Director to have its
13 employees, annuitants, and their dependents provided group
14 health coverage under this Act on a non-insured basis. To
15 participate, a domestic violence shelter or service must
16 agree to enroll all of its employees and pay the entire cost
17 of providing such coverage for its employees. A
18 participating domestic violence shelter may also elect to
19 cover its annuitants. Dependent coverage shall be offered on
20 an optional basis, with employees, or some combination of the
21 2 as determined by the domestic violence shelter or service.
22 The domestic violence shelter or service shall be responsible
23 for timely collection and transmission of dependent premiums.
24 The Director shall annually determine quarterly rates of
25 payment, subject to the following constraints:
26 (1) In the first year of coverage, the rates shall
27 be equal to the amount normally charged to State
28 employees for elected optional coverages or for enrolled
29 dependents coverages or other contributory coverages on
30 behalf of its employees, adjusted for differences between
31 State employees and employees of the domestic violence
32 shelter or service in age, sex, geographic location or
33 other relevant demographic variables, plus an amount
34 sufficient to pay for the additional administrative costs
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1 of providing coverage to employees of the domestic
2 violence shelter or service and their dependents.
3 (2) In subsequent years, a further adjustment shall
4 be made to reflect the actual prior years' claims
5 experience of the employees of the domestic violence
6 shelter or service.
7 (3) In no case shall the rate be less than the
8 amount normally charged to State employees or contributed
9 by the State on behalf of its employees.
10 Monthly payments by the domestic violence shelter or
11 service or its employees for group health insurance shall be
12 deposited in the Local Government Health Insurance Reserve
13 Fund.
14 (l) A public community college or entity organized
15 pursuant to the Public Community College Act may apply to the
16 Director initially to have only annuitants not covered prior
17 to July 1, 1992 by the district's health plan provided health
18 coverage under this Act on a non-insured basis. The
19 community college must execute a 2-year contract to
20 participate in the Local Government Health Plan. Those
21 annuitants enrolled initially under this contract shall have
22 no benefits payable for services incurred during the first 6
23 months of coverage to the extent the services are in
24 connection with any pre-existing condition. Any annuitant
25 who may enroll after this initial enrollment period shall be
26 subject to submission of satisfactory evidence of
27 insurability and to the pre-existing conditions limitation.
28 The Director shall annually determine monthly rates of
29 payment subject to the following constraints: for those
30 community colleges with annuitants only enrolled, first year
31 rates shall be equal to the average cost to cover claims for
32 a State member adjusted for demographics, Medicare
33 participation, and other factors; and in the second year, a
34 further adjustment of rates shall be made to reflect the
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1 actual first year's claims experience of the covered
2 annuitants.
3 (m) The Director shall adopt any rules deemed necessary
4 for implementation of this amendatory Act of 1989 (Public Act
5 86-978).
6 (Source: P.A. 89-53, eff. 7-1-95; 89-236, eff. 8-4-95;
7 89-324, eff. 8-13-95; 89-626, eff. 8-9-96; 90-65, eff.
8 7-7-97; 90-582, eff. 5-27-98; 90-655, eff. 7-30-98; revised
9 8-3-98.)
10 Section 99. Effective date. This Act takes effect upon
11 becoming law.".