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91_SB1652
LRB9108551SMprA
1 AN ACT to amend the State Employees Group Insurance Act
2 of 1971 by changing Section 5.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The State Employees Group Insurance Act of
6 1971 is amended by changing Section 5 as follows:
7 (5 ILCS 375/5) (from Ch. 127, par. 525)
8 Sec. 5. The Director shall contract or otherwise make
9 available group life insurance, health benefits and other
10 employee benefits to eligible members and, where elected,
11 their eligible dependents. Any contract or, if applicable,
12 contracts or other arrangement for provision of benefits
13 shall be on terms deemed by the Director to be in the best
14 interest of the State of Illinois and its members based on,
15 but not limited to, such criteria as administrative cost,
16 service capabilities of the carrier or other contractor and
17 premiums, fees or charges as related to benefits.
18 The Director may prepare and issue specifications for
19 group life insurance, health benefits, other employee
20 benefits and administrative services for the purpose of
21 receiving proposals from interested parties.
22 The Director is authorized to execute a contract, or
23 contracts, for the programs of group life insurance, health
24 benefits, other employee benefits and administrative services
25 authorized by this Act. All of the benefits provided under
26 this Act may be included in one or more contracts, or the
27 benefits may be classified into different types with each
28 type included under one or more similar contracts with the
29 same or different companies.
30 The term of any contract may not extend beyond 10 5
31 fiscal years. Upon recommendation of the Commission, the
-2- LRB9108551SMprA
1 Director may exercise renewal options of the same contract
2 for up to a period of 10 5 years. Any increases in premiums,
3 fees or charges requested by a contractor whose contract may
4 be renewed pursuant to a renewal option contained therein,
5 must be justified on the basis of (1) audited experience
6 data, (2) increases in the costs of health care services
7 provided under the contract, (3) contractor performance, (4)
8 increases in contractor responsibilities, or (5) any
9 combination thereof.
10 Any contractor shall agree to abide by all requirements
11 of this Act and Rules and Regulations promulgated and adopted
12 thereto; to submit such information and data as may from time
13 to time be deemed necessary by the Director for effective
14 administration of the provisions of this Act and the programs
15 established hereunder, and to fully cooperate in any audit.
16 (Source: P.A. 91-390, eff. 7-30-99.)
17 Section 99. Effective date. This Act takes effect upon
18 becoming law.