Sen. Chapin Rose

Filed: 3/14/2023

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 1125

2    AMENDMENT NO. ______. Amend Senate Bill 1125 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The State Employees Group Insurance Act of
51971 is amended by changing Section 6.9 as follows:
 
6    (5 ILCS 375/6.9)
7    Sec. 6.9. Health benefits for community college benefit
8recipients and community college dependent beneficiaries.
9    (a) Purpose. It is the purpose of this amendatory Act of
101997 to establish a uniform program of health benefits for
11community college benefit recipients and their dependent
12beneficiaries under the administration of the Department of
13Central Management Services.
14    (b) Creation of program. Beginning July 1, 1999, the
15Department of Central Management Services shall be responsible
16for administering a program of health benefits for community

 

 

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1college benefit recipients and community college dependent
2beneficiaries under this Section. The State Universities
3Retirement System and the boards of trustees of the various
4community college districts shall cooperate with the
5Department in this endeavor.
6    (c) Eligibility. All community college benefit recipients
7and community college dependent beneficiaries shall be
8eligible to participate in the program established under this
9Section, without any interruption or delay in coverage or
10limitation as to pre-existing medical conditions. Eligibility
11to participate shall be determined by the State Universities
12Retirement System. Eligibility information shall be
13communicated to the Department of Central Management Services
14in a format acceptable to the Department.
15    Eligible community college benefit recipients may enroll
16or re-enroll in the program of health benefits established
17under this Section during any applicable annual open
18enrollment period and as otherwise permitted by the Department
19of Central Management Services. A community college benefit
20recipient shall not be deemed ineligible to participate solely
21by reason of the community college benefit recipient having
22made a previous election to disenroll or otherwise not
23participate in the program of health benefits.
24    (d) Coverage. The health benefit coverage provided under
25this Section shall be a program of health, dental, and vision
26benefits.

 

 

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1    The program of health benefits under this Section may
2include any or all of the benefit limitations, including but
3not limited to a reduction in benefits based on eligibility
4for federal Medicare benefits, that are provided under
5subsection (a) of Section 6 of this Act for other health
6benefit programs under this Act. The Director shall also
7provide community college benefit recipients the option to
8decline dental coverage under this Act for themselves and
9their dependent beneficiaries.
10    (e) Insurance rates and premiums. The Director shall
11determine the insurance rates and premiums for community
12college benefit recipients and community college dependent
13beneficiaries. Rates and premiums may be based in part on age
14and eligibility for federal Medicare coverage. The Director
15shall also determine premiums that will allow for the
16establishment of an actuarially sound reserve for this
17program.
18    The cost of health benefits under the program shall be
19paid as follows:
20        (1) For a community college benefit recipient, up to
21    75% of the total insurance rate shall be paid from the
22    Community College Health Insurance Security Fund.
23        (2) The balance of the rate of insurance, including
24    the entire premium for any coverage for community college
25    dependent beneficiaries that has been elected, shall be
26    paid by deductions authorized by the community college

 

 

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1    benefit recipient to be withheld from his or her monthly
2    annuity or benefit payment from the State Universities
3    Retirement System; except that (i) if the balance of the
4    cost of coverage exceeds the amount of the monthly annuity
5    or benefit payment, the difference shall be paid directly
6    to the State Universities Retirement System by the
7    community college benefit recipient, and (ii) all or part
8    of the balance of the cost of coverage may, at the option
9    of the board of trustees of the community college
10    district, be paid to the State Universities Retirement
11    System by the board of the community college district from
12    which the community college benefit recipient retired. The
13    State Universities Retirement System shall promptly
14    deposit all moneys withheld by or paid to it under this
15    subdivision (e)(2) into the Community College Health
16    Insurance Security Fund. These moneys shall not be
17    considered assets of the State Universities Retirement
18    System.
19    (f) Financing. All revenues arising from the
20administration of the health benefit program established under
21this Section shall be deposited into the Community College
22Health Insurance Security Fund, which is hereby created as a
23nonappropriated trust fund to be held outside the State
24Treasury, with the State Treasurer as custodian. Any interest
25earned on moneys in the Community College Health Insurance
26Security Fund shall be deposited into the Fund.

 

 

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1    Moneys in the Community College Health Insurance Security
2Fund shall be used only to pay the costs of the health benefit
3program established under this Section, including associated
4administrative costs and the establishment of a program
5reserve. Beginning January 1, 1999, the Department of Central
6Management Services may make expenditures from the Community
7College Health Insurance Security Fund for those costs.
8    (g) Contract for benefits. The Director shall by contract,
9self-insurance, or otherwise make available the program of
10health benefits for community college benefit recipients and
11their community college dependent beneficiaries that is
12provided for in this Section. The contract or other
13arrangement for the provision of these health benefits shall
14be on terms deemed by the Director to be in the best interest
15of the State of Illinois and the community college benefit
16recipients based on, but not limited to, such criteria as
17administrative cost, service capabilities of the carrier or
18other contractor, and the costs of the benefits.
19    (h) Continuation of program. It is the intention of the
20General Assembly that the program of health benefits provided
21under this Section be maintained on an ongoing, affordable
22basis. The program of health benefits provided under this
23Section may be amended by the State and is not intended to be a
24pension or retirement benefit subject to protection under
25Article XIII, Section 5 of the Illinois Constitution.
26    (i) Other health benefit plans. A health benefit plan

 

 

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1provided by a community college district (other than a
2community college district subject to Article VII of the
3Public Community College Act) under the terms of a collective
4bargaining agreement in effect on or prior to the effective
5date of this amendatory Act of 1997 shall continue in force
6according to the terms of that agreement, unless otherwise
7mutually agreed by the parties to that agreement and the
8affected retiree. A community college benefit recipient or
9community college dependent beneficiary whose coverage under
10such a plan expires shall be eligible to begin participating
11in the program established under this Section without any
12interruption or delay in coverage or limitation as to
13pre-existing medical conditions.
14    This Act does not prohibit any community college district
15from offering additional health benefits for its retirees or
16their dependents or survivors.
17(Source: P.A. 100-1017, eff. 8-21-18.)".