093_HB2514eng HB2514 Engrossed LRB093 08477 JLS 08701 b 1 AN ACT concerning health coverage under State employee 2 programs. 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 Sections 2, 3, 10, 13.2, and 15 7 as follows: 8 (5 ILCS 375/2) (from Ch. 127, par. 522) 9 Sec. 2. Purpose. The purpose of this Act is to provide a 10 program of group life insurance, a program of health benefits 11 and other employee benefits for persons in the service of the 12 State of Illinois, employees of local governments, employees 13 of rehabilitation facilities and employees of domestic 14 violence shelters and services, and certain of their 15 dependents. It is also the purpose of this Act to provide a 16 program of health benefits (i) for certain benefit recipients 17 of the Teachers' Retirement System of the State of Illinois 18 and their dependent beneficiaries and (ii) for certain 19 eligible retired community college employees and their 20 dependent beneficiaries. It is also the purpose of this Act 21 to provide a program of health benefits for owners and 22 employees of qualified small businesses and their dependents. 23 (Source: P.A. 89-25, eff. 6-21-95; 90-497, eff. 8-18-97.) 24 (5 ILCS 375/3) (from Ch. 127, par. 523) 25 Sec. 3. Definitions. Unless the context otherwise 26 requires, the following words and phrases as used in this Act 27 shall have the following meanings. The Department may define 28 these and other words and phrases separately for the purpose 29 of implementing specific programs providing benefits under 30 this Act. HB2514 Engrossed -2- LRB093 08477 JLS 08701 b 1 (a) "Administrative service organization" means any 2 person, firm or corporation experienced in the handling of 3 claims which is fully qualified, financially sound and 4 capable of meeting the service requirements of a contract of 5 administration executed with the Department. 6 (b) "Annuitant" means (1) an employee who retires, or 7 has retired, on or after January 1, 1966 on an immediate 8 annuity under the provisions of Articles 2, 14, 15 (including 9 an employee who has retired under the optional retirement 10 program established under Section 15-158.2), paragraphs (2), 11 (3), or (5) of Section 16-106, or Article 18 of the Illinois 12 Pension Code; (2) any person who was receiving group 13 insurance coverage under this Act as of March 31, 1978 by 14 reason of his status as an annuitant, even though the annuity 15 in relation to which such coverage was provided is a 16 proportional annuity based on less than the minimum period of 17 service required for a retirement annuity in the system 18 involved; (3) any person not otherwise covered by this Act 19 who has retired as a participating member under Article 2 of 20 the Illinois Pension Code but is ineligible for the 21 retirement annuity under Section 2-119 of the Illinois 22 Pension Code; (4) the spouse of any person who is receiving a 23 retirement annuity under Article 18 of the Illinois Pension 24 Code and who is covered under a group health insurance 25 program sponsored by a governmental employer other than the 26 State of Illinois and who has irrevocably elected to waive 27 his or her coverage under this Act and to have his or her 28 spouse considered as the "annuitant" under this Act and not 29 as a "dependent";or(5) an employee who retires, or has 30 retired, from a qualified position, as determined according 31 to rules promulgated by the Director, under a qualified local 32 government or a qualified rehabilitation facility or a 33 qualified domestic violence shelter or service; or (6) an 34 owner or employee who retires, or has retired, from a HB2514 Engrossed -3- LRB093 08477 JLS 08701 b 1 qualified position, as determined according to rules 2 promulgated by the Director, with a qualified small business. 3 (For definition of "retired employee", see (p) post). 4 (b-5) "New SERS annuitant" means a person who, on or 5 after January 1, 1998, becomes an annuitant, as defined in 6 subsection (b), by virtue of beginning to receive a 7 retirement annuity under Article 14 of the Illinois Pension 8 Code, and is eligible to participate in the basic program of 9 group health benefits provided for annuitants under this Act. 10 (b-6) "New SURS annuitant" means a person who (1) on or 11 after January 1, 1998, becomes an annuitant, as defined in 12 subsection (b), by virtue of beginning to receive a 13 retirement annuity under Article 15 of the Illinois Pension 14 Code, (2) has not made the election authorized under Section 15 15-135.1 of the Illinois Pension Code, and (3) is eligible to 16 participate in the basic program of group health benefits 17 provided for annuitants under this Act. 18 (b-7) "New TRS State annuitant" means a person who, on 19 or after July 1, 1998, becomes an annuitant, as defined in 20 subsection (b), by virtue of beginning to receive a 21 retirement annuity under Article 16 of the Illinois Pension 22 Code based on service as a teacher as defined in paragraph 23 (2), (3), or (5) of Section 16-106 of that Code, and is 24 eligible to participate in the basic program of group health 25 benefits provided for annuitants under this Act. 26 (c) "Carrier" means (1) an insurance company, a 27 corporation organized under the Limited Health Service 28 Organization Act or the Voluntary Health Services Plan Act, a 29 partnership, or other nongovernmental organization, which is 30 authorized to do group life or group health insurance 31 business in Illinois, or (2) the State of Illinois as a 32 self-insurer. 33 (d) "Compensation" means salary or wages payable on a 34 regular payroll by the State Treasurer on a warrant of the HB2514 Engrossed -4- LRB093 08477 JLS 08701 b 1 State Comptroller out of any State, trust or federal fund, or 2 by the Governor of the State through a disbursing officer of 3 the State out of a trust or out of federal funds, or by any 4 Department out of State, trust, federal or other funds held 5 by the State Treasurer or the Department, to any person for 6 personal services currently performed, and ordinary or 7 accidental disability benefits under Articles 2, 14, 15 8 (including ordinary or accidental disability benefits under 9 the optional retirement program established under Section 10 15-158.2), paragraphs (2), (3), or (5) of Section 16-106, or 11 Article 18 of the Illinois Pension Code, for disability 12 incurred after January 1, 1966, or benefits payable under the 13 Workers' Compensation or Occupational Diseases Act or 14 benefits payable under a sick pay plan established in 15 accordance with Section 36 of the State Finance Act. 16 "Compensation" also means salary or wages paid to an employee 17 of any qualified local government or qualified rehabilitation 18 facility or a qualified domestic violence shelter or service. 19 "Compensation" also means salary or wages paid to an employee 20 or owner of a qualified small business. 21 (e) "Commission" means the State Employees Group 22 Insurance Advisory Commission authorized by this Act. 23 Commencing July 1, 1984, "Commission" as used in this Act 24 means the Illinois Economic and Fiscal Commission as 25 established by the Legislative Commission Reorganization Act 26 of 1984. 27 (f) "Contributory", when referred to as contributory 28 coverage, shall mean optional coverages or benefits elected 29 by the member toward the cost of which such member makes 30 contribution, or which are funded in whole or in part through 31 the acceptance of a reduction in earnings or the foregoing of 32 an increase in earnings by an employee, as distinguished from 33 noncontributory coverage or benefits which are paid entirely 34 by the State of Illinois without reduction of the member's HB2514 Engrossed -5- LRB093 08477 JLS 08701 b 1 salary. 2 (g) "Department" means any department, institution, 3 board, commission, officer, court or any agency of the State 4 government receiving appropriations and having power to 5 certify payrolls to the Comptroller authorizing payments of 6 salary and wages against such appropriations as are made by 7 the General Assembly from any State fund, or against trust 8 funds held by the State Treasurer and includes boards of 9 trustees of the retirement systems created by Articles 2, 14, 10 15, 16 and 18 of the Illinois Pension Code. "Department" 11 also includes the Illinois Comprehensive Health Insurance 12 Board, the Board of Examiners established under the Illinois 13 Public Accounting Act, and the Illinois Rural Bond Bank. 14 (h) "Dependent", when the term is used in the context of 15 the health and life plan, means a member's spouse and any 16 unmarried child (1) from birth to age 19 including an adopted 17 child, a child who lives with the member from the time of the 18 filing of a petition for adoption until entry of an order of 19 adoption, a stepchild or recognized child who lives with the 20 member in a parent-child relationship, or a child who lives 21 with the member if such member is a court appointed guardian 22 of the child, or (2) age 19 to 23 enrolled as a full-time 23 student in any accredited school, financially dependent upon 24 the member, and eligible to be claimed as a dependent for 25 income tax purposes, or (3) age 19 or over who is mentally or 26 physically handicapped. For the health plan only, the term 27 "dependent" also includes any person enrolled prior to the 28 effective date of this Section who is dependent upon the 29 member to the extent that the member may claim such person as 30 a dependent for income tax deduction purposes; no other such 31 person may be enrolled. For the health plan only, the term 32 "dependent" also includes any person who has received after 33 June 30, 2000 an organ transplant and who is financially 34 dependent upon the member and eligible to be claimed as a HB2514 Engrossed -6- LRB093 08477 JLS 08701 b 1 dependent for income tax purposes. 2 (i) "Director" means the Director of the Illinois 3 Department of Central Management Services. 4 (j) "Eligibility period" means the period of time a 5 member has to elect enrollment in programs or to select 6 benefits without regard to age, sex or health. 7 (k) "Employee" means and includes each officer or 8 employee in the service of a department who (1) receives his 9 compensation for service rendered to the department on a 10 warrant issued pursuant to a payroll certified by a 11 department or on a warrant or check issued and drawn by a 12 department upon a trust, federal or other fund or on a 13 warrant issued pursuant to a payroll certified by an elected 14 or duly appointed officer of the State or who receives 15 payment of the performance of personal services on a warrant 16 issued pursuant to a payroll certified by a Department and 17 drawn by the Comptroller upon the State Treasurer against 18 appropriations made by the General Assembly from any fund or 19 against trust funds held by the State Treasurer, and (2) is 20 employed full-time or part-time in a position normally 21 requiring actual performance of duty during not less than 1/2 22 of a normal work period, as established by the Director in 23 cooperation with each department, except that persons elected 24 by popular vote will be considered employees during the 25 entire term for which they are elected regardless of hours 26 devoted to the service of the State, and (3) except that 27 "employee" does not include any person who is not eligible by 28 reason of such person's employment to participate in one of 29 the State retirement systems under Articles 2, 14, 15 (either 30 the regular Article 15 system or the optional retirement 31 program established under Section 15-158.2) or 18, or under 32 paragraph (2), (3), or (5) of Section 16-106, of the Illinois 33 Pension Code, but such term does include persons who are 34 employed during the 6 month qualifying period under Article HB2514 Engrossed -7- LRB093 08477 JLS 08701 b 1 14 of the Illinois Pension Code. Such term also includes any 2 person who (1) after January 1, 1966, is receiving ordinary 3 or accidental disability benefits under Articles 2, 14, 15 4 (including ordinary or accidental disability benefits under 5 the optional retirement program established under Section 6 15-158.2), paragraphs (2), (3), or (5) of Section 16-106, or 7 Article 18 of the Illinois Pension Code, for disability 8 incurred after January 1, 1966, (2) receives total permanent 9 or total temporary disability under the Workers' Compensation 10 Act or Occupational Disease Act as a result of injuries 11 sustained or illness contracted in the course of employment 12 with the State of Illinois, or (3) is not otherwise covered 13 under this Act and has retired as a participating member 14 under Article 2 of the Illinois Pension Code but is 15 ineligible for the retirement annuity under Section 2-119 of 16 the Illinois Pension Code. However, a person who satisfies 17 the criteria of the foregoing definition of "employee" except 18 that such person is made ineligible to participate in the 19 State Universities Retirement System by clause (4) of 20 subsection (a) of Section 15-107 of the Illinois Pension Code 21 is also an "employee" for the purposes of this Act. 22 "Employee" also includes any person receiving or eligible for 23 benefits under a sick pay plan established in accordance with 24 Section 36 of the State Finance Act. "Employee" also includes 25 each officer or employee in the service of a qualified local 26 government, including persons appointed as trustees of 27 sanitary districts regardless of hours devoted to the service 28 of the sanitary district, and each employee in the service of 29 a qualified rehabilitation facility and each full-time 30 employee in the service of a qualified domestic violence 31 shelter or service, as determined according to rules 32 promulgated by the Director. "Employee" also includes an 33 owner and a full-time employee in the service of a qualified 34 small business, as determined according to rules promulgated HB2514 Engrossed -8- LRB093 08477 JLS 08701 b 1 by the Director. 2 (l) "Member" means an employee, annuitant, retired 3 employee or survivor. 4 (m) "Optional coverages or benefits" means those 5 coverages or benefits available to the member on his or her 6 voluntary election, and at his or her own expense. 7 (n) "Program" means the group life insurance, health 8 benefits and other employee benefits designed and contracted 9 for by the Director under this Act. 10 (o) "Health plan" means a health benefits program 11 offered by the State of Illinois for persons eligible for the 12 plan. 13 (p) "Retired employee" means any person who would be an 14 annuitant as that term is defined herein but for the fact 15 that such person retired prior to January 1, 1966. Such term 16 also includes any person formerly employed by the University 17 of Illinois in the Cooperative Extension Service who would be 18 an annuitant but for the fact that such person was made 19 ineligible to participate in the State Universities 20 Retirement System by clause (4) of subsection (a) of Section 21 15-107 of the Illinois Pension Code. 22 (q) "Survivor" means a person receiving an annuity as a 23 survivor of an employee or of an annuitant. "Survivor" also 24 includes: (1) the surviving dependent of a person who 25 satisfies the definition of "employee" except that such 26 person is made ineligible to participate in the State 27 Universities Retirement System by clause (4) of subsection 28 (a) of Section 15-107 of the Illinois Pension Code; and (2) 29 the surviving dependent of any person formerly employed by 30 the University of Illinois in the Cooperative Extension 31 Service who would be an annuitant except for the fact that 32 such person was made ineligible to participate in the State 33 Universities Retirement System by clause (4) of subsection 34 (a) of Section 15-107 of the Illinois Pension Code. HB2514 Engrossed -9- LRB093 08477 JLS 08701 b 1 (q-5) "New SERS survivor" means a survivor, as defined 2 in subsection (q), whose annuity is paid under Article 14 of 3 the Illinois Pension Code and is based on the death of (i) an 4 employee whose death occurs on or after January 1, 1998, or 5 (ii) a new SERS annuitant as defined in subsection (b-5). 6 (q-6) "New SURS survivor" means a survivor, as defined 7 in subsection (q), whose annuity is paid under Article 15 of 8 the Illinois Pension Code and is based on the death of (i) an 9 employee whose death occurs on or after January 1, 1998, or 10 (ii) a new SURS annuitant as defined in subsection (b-6). 11 (q-7) "New TRS State survivor" means a survivor, as 12 defined in subsection (q), whose annuity is paid under 13 Article 16 of the Illinois Pension Code and is based on the 14 death of (i) an employee who is a teacher as defined in 15 paragraph (2), (3), or (5) of Section 16-106 of that Code and 16 whose death occurs on or after July 1, 1998, or (ii) a new 17 TRS State annuitant as defined in subsection (b-7). 18 (r) "Medical services" means the services provided 19 within the scope of their licenses by practitioners in all 20 categories licensed under the Medical Practice Act of 1987. 21 (s) "Unit of local government" means any county, 22 municipality, township, school district (including a 23 combination of school districts under the Intergovernmental 24 Cooperation Act), special district or other unit, designated 25 as a unit of local government by law, which exercises limited 26 governmental powers or powers in respect to limited 27 governmental subjects, any not-for-profit association with a 28 membership that primarily includes townships and township 29 officials, that has duties that include provision of research 30 service, dissemination of information, and other acts for the 31 purpose of improving township government, and that is funded 32 wholly or partly in accordance with Section 85-15 of the 33 Township Code; any not-for-profit corporation or association, 34 with a membership consisting primarily of municipalities, HB2514 Engrossed -10- LRB093 08477 JLS 08701 b 1 that operates its own utility system, and provides research, 2 training, dissemination of information, or other acts to 3 promote cooperation between and among municipalities that 4 provide utility services and for the advancement of the goals 5 and purposes of its membership; the Southern Illinois 6 Collegiate Common Market, which is a consortium of higher 7 education institutions in Southern Illinois; and the Illinois 8 Association of Park Districts. "Qualified local government" 9 means a unit of local government approved by the Director and 10 participating in a program created under subsection (i) of 11 Section 10 of this Act. 12 (t) "Qualified rehabilitation facility" means any 13 not-for-profit organization that is accredited by the 14 Commission on Accreditation of Rehabilitation Facilities or 15 certified by the Department of Human Services (as successor 16 to the Department of Mental Health and Developmental 17 Disabilities) to provide services to persons with 18 disabilities and which receives funds from the State of 19 Illinois for providing those services, approved by the 20 Director and participating in a program created under 21 subsection (j) of Section 10 of this Act. 22 (u) "Qualified domestic violence shelter or service" 23 means any Illinois domestic violence shelter or service and 24 its administrative offices funded by the Department of Human 25 Services (as successor to the Illinois Department of Public 26 Aid), approved by the Director and participating in a program 27 created under subsection (k) of Section 10. 28 (v) "TRS benefit recipient" means a person who: 29 (1) is not a "member" as defined in this Section; 30 and 31 (2) is receiving a monthly benefit or retirement 32 annuity under Article 16 of the Illinois Pension Code; 33 and 34 (3) either (i) has at least 8 years of creditable HB2514 Engrossed -11- LRB093 08477 JLS 08701 b 1 service under Article 16 of the Illinois Pension Code, or 2 (ii) was enrolled in the health insurance program offered 3 under that Article on January 1, 1996, or (iii) is the 4 survivor of a benefit recipient who had at least 8 years 5 of creditable service under Article 16 of the Illinois 6 Pension Code or was enrolled in the health insurance 7 program offered under that Article on the effective date 8 of this amendatory Act of 1995, or (iv) is a recipient or 9 survivor of a recipient of a disability benefit under 10 Article 16 of the Illinois Pension Code. 11 (w) "TRS dependent beneficiary" means a person who: 12 (1) is not a "member" or "dependent" as defined in 13 this Section; and 14 (2) is a TRS benefit recipient's: (A) spouse, (B) 15 dependent parent who is receiving at least half of his or 16 her support from the TRS benefit recipient, or (C) 17 unmarried natural or adopted child who is (i) under age 18 19, or (ii) enrolled as a full-time student in an 19 accredited school, financially dependent upon the TRS 20 benefit recipient, eligible to be claimed as a dependent 21 for income tax purposes, and either is under age 24 or 22 was, on January 1, 1996, participating as a dependent 23 beneficiary in the health insurance program offered under 24 Article 16 of the Illinois Pension Code, or (iii) age 19 25 or over who is mentally or physically handicapped. 26 (x) "Military leave with pay and benefits" refers to 27 individuals in basic training for reserves, special/advanced 28 training, annual training, emergency call up, or activation 29 by the President of the United States with approved pay and 30 benefits. 31 (y) "Military leave without pay and benefits" refers to 32 individuals who enlist for active duty in a regular component 33 of the U.S. Armed Forces or other duty not specified or 34 authorized under military leave with pay and benefits. HB2514 Engrossed -12- LRB093 08477 JLS 08701 b 1 (z) "Community college benefit recipient" means a person 2 who: 3 (1) is not a "member" as defined in this Section; 4 and 5 (2) is receiving a monthly survivor's annuity or 6 retirement annuity under Article 15 of the Illinois 7 Pension Code; and 8 (3) either (i) was a full-time employee of a 9 community college district or an association of community 10 college boards created under the Public Community College 11 Act (other than an employee whose last employer under 12 Article 15 of the Illinois Pension Code was a community 13 college district subject to Article VII of the Public 14 Community College Act) and was eligible to participate in 15 a group health benefit plan as an employee during the 16 time of employment with a community college district 17 (other than a community college district subject to 18 Article VII of the Public Community College Act) or an 19 association of community college boards, or (ii) is the 20 survivor of a person described in item (i). 21 (aa) "Community college dependent beneficiary" means a 22 person who: 23 (1) is not a "member" or "dependent" as defined in 24 this Section; and 25 (2) is a community college benefit recipient's: (A) 26 spouse, (B) dependent parent who is receiving at least 27 half of his or her support from the community college 28 benefit recipient, or (C) unmarried natural or adopted 29 child who is (i) under age 19, or (ii) enrolled as a 30 full-time student in an accredited school, financially 31 dependent upon the community college benefit recipient, 32 eligible to be claimed as a dependent for income tax 33 purposes and under age 23, or (iii) age 19 or over and 34 mentally or physically handicapped. HB2514 Engrossed -13- LRB093 08477 JLS 08701 b 1 (bb) "Qualified small business" means a business 2 situated in Illinois having 50 or fewer employees, approved 3 by the Director and participating in a program created under 4 subsection (k-5) of Section 10. 5 (Source: P.A. 91-390, eff. 7-30-99; 91-395, eff. 7-30-99; 6 91-617, eff. 8-19-99; 92-16, eff. 6-28-01; 92-186, eff. 7 1-1-02; 92-204, eff. 8-1-01; 92-651, eff. 7-11-02.) 8 (5 ILCS 375/10) (from Ch. 127, par. 530) 9 Sec. 10. Payments by State; premiums. 10 (a) The State shall pay the cost of basic 11 non-contributory group life insurance and, subject to member 12 paid contributions set by the Department or required by this 13 Section, the basic program of group health benefits on each 14 eligible member, except a member, not otherwise covered by 15 this Act, who has retired as a participating member under 16 Article 2 of the Illinois Pension Code but is ineligible for 17 the retirement annuity under Section 2-119 of the Illinois 18 Pension Code, and part of each eligible member's and retired 19 member's premiums for health insurance coverage for enrolled 20 dependents as provided by Section 9. The State shall pay the 21 cost of the basic program of group health benefits only after 22 benefits are reduced by the amount of benefits covered by 23 Medicare for all members and dependents who are eligible for 24 benefits under Social Security or the Railroad Retirement 25 system or who had sufficient Medicare-covered government 26 employment, except that such reduction in benefits shall 27 apply only to those members and dependents who (1) first 28 become eligible for such Medicare coverage on or after July 29 1, 1992; or (2) are Medicare-eligible members or dependents 30 of a local government unit which began participation in the 31 program on or after July 1, 1992; or (3) remain eligible for, 32 but no longer receive Medicare coverage which they had been 33 receiving on or after July 1, 1992. The Department may HB2514 Engrossed -14- LRB093 08477 JLS 08701 b 1 determine the aggregate level of the State's contribution on 2 the basis of actual cost of medical services adjusted for 3 age, sex or geographic or other demographic characteristics 4 which affect the costs of such programs. 5 The cost of participation in the basic program of group 6 health benefits for the dependent or survivor of a living or 7 deceased retired employee who was formerly employed by the 8 University of Illinois in the Cooperative Extension Service 9 and would be an annuitant but for the fact that he or she was 10 made ineligible to participate in the State Universities 11 Retirement System by clause (4) of subsection (a) of Section 12 15-107 of the Illinois Pension Code shall not be greater than 13 the cost of participation that would otherwise apply to that 14 dependent or survivor if he or she were the dependent or 15 survivor of an annuitant under the State Universities 16 Retirement System. 17 (a-1) Beginning January 1, 1998, for each person who 18 becomes a new SERS annuitant and participates in the basic 19 program of group health benefits, the State shall contribute 20 toward the cost of the annuitant's coverage under the basic 21 program of group health benefits an amount equal to 5% of 22 that cost for each full year of creditable service upon which 23 the annuitant's retirement annuity is based, up to a maximum 24 of 100% for an annuitant with 20 or more years of creditable 25 service. The remainder of the cost of a new SERS annuitant's 26 coverage under the basic program of group health benefits 27 shall be the responsibility of the annuitant. 28 (a-2) Beginning January 1, 1998, for each person who 29 becomes a new SERS survivor and participates in the basic 30 program of group health benefits, the State shall contribute 31 toward the cost of the survivor's coverage under the basic 32 program of group health benefits an amount equal to 5% of 33 that cost for each full year of the deceased employee's or 34 deceased annuitant's creditable service in the State HB2514 Engrossed -15- LRB093 08477 JLS 08701 b 1 Employees' Retirement System of Illinois on the date of 2 death, up to a maximum of 100% for a survivor of an employee 3 or annuitant with 20 or more years of creditable service. 4 The remainder of the cost of the new SERS survivor's coverage 5 under the basic program of group health benefits shall be the 6 responsibility of the survivor. 7 (a-3) Beginning January 1, 1998, for each person who 8 becomes a new SURS annuitant and participates in the basic 9 program of group health benefits, the State shall contribute 10 toward the cost of the annuitant's coverage under the basic 11 program of group health benefits an amount equal to 5% of 12 that cost for each full year of creditable service upon which 13 the annuitant's retirement annuity is based, up to a maximum 14 of 100% for an annuitant with 20 or more years of creditable 15 service. The remainder of the cost of a new SURS annuitant's 16 coverage under the basic program of group health benefits 17 shall be the responsibility of the annuitant. 18 (a-4) (Blank). 19 (a-5) Beginning January 1, 1998, for each person who 20 becomes a new SURS survivor and participates in the basic 21 program of group health benefits, the State shall contribute 22 toward the cost of the survivor's coverage under the basic 23 program of group health benefits an amount equal to 5% of 24 that cost for each full year of the deceased employee's or 25 deceased annuitant's creditable service in the State 26 Universities Retirement System on the date of death, up to a 27 maximum of 100% for a survivor of an employee or annuitant 28 with 20 or more years of creditable service. The remainder 29 of the cost of the new SURS survivor's coverage under the 30 basic program of group health benefits shall be the 31 responsibility of the survivor. 32 (a-6) Beginning July 1, 1998, for each person who 33 becomes a new TRS State annuitant and participates in the 34 basic program of group health benefits, the State shall HB2514 Engrossed -16- LRB093 08477 JLS 08701 b 1 contribute toward the cost of the annuitant's coverage under 2 the basic program of group health benefits an amount equal to 3 5% of that cost for each full year of creditable service as a 4 teacher as defined in paragraph (2), (3), or (5) of Section 5 16-106 of the Illinois Pension Code upon which the 6 annuitant's retirement annuity is based, up to a maximum of 7 100%; except that the State contribution shall be 12.5% per 8 year (rather than 5%) for each full year of creditable 9 service as a regional superintendent or assistant regional 10 superintendent of schools. The remainder of the cost of a 11 new TRS State annuitant's coverage under the basic program of 12 group health benefits shall be the responsibility of the 13 annuitant. 14 (a-7) Beginning July 1, 1998, for each person who 15 becomes a new TRS State survivor and participates in the 16 basic program of group health benefits, the State shall 17 contribute toward the cost of the survivor's coverage under 18 the basic program of group health benefits an amount equal to 19 5% of that cost for each full year of the deceased employee's 20 or deceased annuitant's creditable service as a teacher as 21 defined in paragraph (2), (3), or (5) of Section 16-106 of 22 the Illinois Pension Code on the date of death, up to a 23 maximum of 100%; except that the State contribution shall be 24 12.5% per year (rather than 5%) for each full year of the 25 deceased employee's or deceased annuitant's creditable 26 service as a regional superintendent or assistant regional 27 superintendent of schools. The remainder of the cost of the 28 new TRS State survivor's coverage under the basic program of 29 group health benefits shall be the responsibility of the 30 survivor. 31 (a-8) A new SERS annuitant, new SERS survivor, new SURS 32 annuitant, new SURS survivor, new TRS State annuitant, or new 33 TRS State survivor may waive or terminate coverage in the 34 program of group health benefits. Any such annuitant or HB2514 Engrossed -17- LRB093 08477 JLS 08701 b 1 survivor who has waived or terminated coverage may enroll or 2 re-enroll in the program of group health benefits only during 3 the annual benefit choice period, as determined by the 4 Director; except that in the event of termination of coverage 5 due to nonpayment of premiums, the annuitant or survivor may 6 not re-enroll in the program. 7 (a-9) No later than May 1 of each calendar year, the 8 Director of Central Management Services shall certify in 9 writing to the Executive Secretary of the State Employees' 10 Retirement System of Illinois the amounts of the Medicare 11 supplement health care premiums and the amounts of the health 12 care premiums for all other retirees who are not Medicare 13 eligible. 14 A separate calculation of the premiums based upon the 15 actual cost of each health care plan shall be so certified. 16 The Director of Central Management Services shall provide 17 to the Executive Secretary of the State Employees' Retirement 18 System of Illinois such information, statistics, and other 19 data as he or she may require to review the premium amounts 20 certified by the Director of Central Management Services. 21 (b) State employees who become eligible for this program 22 on or after January 1, 1980 in positions normally requiring 23 actual performance of duty not less than 1/2 of a normal work 24 period but not equal to that of a normal work period, shall 25 be given the option of participating in the available 26 program. If the employee elects coverage, the State shall 27 contribute on behalf of such employee to the cost of the 28 employee's benefit and any applicable dependent supplement, 29 that sum which bears the same percentage as that percentage 30 of time the employee regularly works when compared to normal 31 work period. 32 (c) The basic non-contributory coverage from the basic 33 program of group health benefits shall be continued for each 34 employee not in pay status or on active service by reason of HB2514 Engrossed -18- LRB093 08477 JLS 08701 b 1 (1) leave of absence due to illness or injury, (2) authorized 2 educational leave of absence or sabbatical leave, or (3) 3 military leave with pay and benefits. This coverage shall 4 continue until expiration of authorized leave and return to 5 active service, but not to exceed 24 months for leaves under 6 item (1) or (2). This 24-month limitation and the requirement 7 of returning to active service shall not apply to persons 8 receiving ordinary or accidental disability benefits or 9 retirement benefits through the appropriate State retirement 10 system or benefits under the Workers' Compensation or 11 Occupational Disease Act. 12 (d) The basic group life insurance coverage shall 13 continue, with full State contribution, where such person is 14 (1) absent from active service by reason of disability 15 arising from any cause other than self-inflicted, (2) on 16 authorized educational leave of absence or sabbatical leave, 17 or (3) on military leave with pay and benefits. 18 (e) Where the person is in non-pay status for a period 19 in excess of 30 days or on leave of absence, other than by 20 reason of disability, educational or sabbatical leave, or 21 military leave with pay and benefits, such person may 22 continue coverage only by making personal payment equal to 23 the amount normally contributed by the State on such person's 24 behalf. Such payments and coverage may be continued: (1) 25 until such time as the person returns to a status eligible 26 for coverage at State expense, but not to exceed 24 months, 27 (2) until such person's employment or annuitant status with 28 the State is terminated, or (3) for a maximum period of 4 29 years for members on military leave with pay and benefits and 30 military leave without pay and benefits (exclusive of any 31 additional service imposed pursuant to law). 32 (f) The Department shall establish by rule the extent 33 to which other employee benefits will continue for persons in 34 non-pay status or who are not in active service. HB2514 Engrossed -19- LRB093 08477 JLS 08701 b 1 (g) The State shall not pay the cost of the basic 2 non-contributory group life insurance, program of health 3 benefits and other employee benefits for members who are 4 survivors as defined by paragraphs (1) and (2) of subsection 5 (q) of Section 3 of this Act. The costs of benefits for 6 these survivors shall be paid by the survivors or by the 7 University of Illinois Cooperative Extension Service, or any 8 combination thereof. However, the State shall pay the amount 9 of the reduction in the cost of participation, if any, 10 resulting from the amendment to subsection (a) made by this 11 amendatory Act of the 91st General Assembly. 12 (h) Those persons occupying positions with any 13 department as a result of emergency appointments pursuant to 14 Section 8b.8 of the Personnel Code who are not considered 15 employees under this Act shall be given the option of 16 participating in the programs of group life insurance, health 17 benefits and other employee benefits. Such persons electing 18 coverage may participate only by making payment equal to the 19 amount normally contributed by the State for similarly 20 situated employees. Such amounts shall be determined by the 21 Director. Such payments and coverage may be continued until 22 such time as the person becomes an employee pursuant to this 23 Act or such person's appointment is terminated. 24 (i) Any unit of local government within the State of 25 Illinois may apply to the Director to have its employees, 26 annuitants, and their dependents provided group health 27 coverage under this Act on a non-insured basis. To 28 participate, a unit of local government must agree to enroll 29 all of its employees, who may select coverage under either 30 the State group health benefits plan or a health maintenance 31 organization that has contracted with the State to be 32 available as a health care provider for employees as defined 33 in this Act. A unit of local government must remit the 34 entire cost of providing coverage under the State group HB2514 Engrossed -20- LRB093 08477 JLS 08701 b 1 health benefits plan or, for coverage under a health 2 maintenance organization, an amount determined by the 3 Director based on an analysis of the sex, age, geographic 4 location, or other relevant demographic variables for its 5 employees, except that the unit of local government shall not 6 be required to enroll those of its employees who are covered 7 spouses or dependents under this plan or another group policy 8 or plan providing health benefits as long as (1) an 9 appropriate official from the unit of local government 10 attests that each employee not enrolled is a covered spouse 11 or dependent under this plan or another group policy or plan, 12 and (2) at least 85% of the employees are enrolled and the 13 unit of local government remits the entire cost of providing 14 coverage to those employees, except that a participating 15 school district must have enrolled at least 85% of its 16 full-time employees who have not waived coverage under the 17 district's group health plan by participating in a component 18 of the district's cafeteria plan. A participating school 19 district is not required to enroll a full-time employee who 20 has waived coverage under the district's health plan, 21 provided that an appropriate official from the participating 22 school district attests that the full-time employee has 23 waived coverage by participating in a component of the 24 district's cafeteria plan. For the purposes of this 25 subsection, "participating school district" includes a unit 26 of local government whose primary purpose is education as 27 defined by the Department's rules. 28 Employees of a participating unit of local government who 29 are not enrolled due to coverage under another group health 30 policy or plan may enroll in the event of a qualifying change 31 in status, special enrollment, special circumstance as 32 defined by the Director, or during the annual Benefit Choice 33 Period. A participating unit of local government may also 34 elect to cover its annuitants. Dependent coverage shall be HB2514 Engrossed -21- LRB093 08477 JLS 08701 b 1 offered on an optional basis, with the costs paid by the unit 2 of local government, its employees, or some combination of 3 the two as determined by the unit of local government. The 4 unit of local government shall be responsible for timely 5 collection and transmission of dependent premiums. 6 The Director shall annually determine monthly rates of 7 payment, subject to the following constraints: 8 (1) In the first year of coverage, the rates shall 9 be equal to the amount normally charged to State 10 employees for elected optional coverages or for enrolled 11 dependents coverages or other contributory coverages, or 12 contributed by the State for basic insurance coverages on 13 behalf of its employees, adjusted for differences between 14 State employees and employees of the local government in 15 age, sex, geographic location or other relevant 16 demographic variables, plus an amount sufficient to pay 17 for the additional administrative costs of providing 18 coverage to employees of the unit of local government and 19 their dependents. 20 (2) In subsequent years, a further adjustment shall 21 be made to reflect the actual prior years' claims 22 experience of the employees of the unit of local 23 government. 24 In the case of coverage of local government employees 25 under a health maintenance organization, the Director shall 26 annually determine for each participating unit of local 27 government the maximum monthly amount the unit may contribute 28 toward that coverage, based on an analysis of (i) the age, 29 sex, geographic location, and other relevant demographic 30 variables of the unit's employees and (ii) the cost to cover 31 those employees under the State group health benefits plan. 32 The Director may similarly determine the maximum monthly 33 amount each unit of local government may contribute toward 34 coverage of its employees' dependents under a health HB2514 Engrossed -22- LRB093 08477 JLS 08701 b 1 maintenance organization. 2 Monthly payments by the unit of local government or its 3 employees for group health benefits plan or health 4 maintenance organization coverage shall be deposited in the 5 Local Government Health Insurance Reserve Fund. 6 The Local Government Health Insurance Reserve Fund shall 7 be a continuing fund not subject to fiscal year limitations. 8 All expenditures from this Fund shall be used for payments 9 for health care benefits for local government, domestic 10 violence shelter or service, and rehabilitation facility 11 employees, annuitants, and dependents, and to reimburse the 12 Department or its administrative service organization for all 13 expenses incurred in the administration of benefits. No 14 other State funds may be used for these purposes. 15 A local government employer's participation or desire to 16 participate in a program created under this subsection shall 17 not limit that employer's duty to bargain with the 18 representative of any collective bargaining unit of its 19 employees. 20 (j) Any rehabilitation facility within the State of 21 Illinois may apply to the Director to have its employees, 22 annuitants, and their eligible dependents provided group 23 health coverage under this Act on a non-insured basis. To 24 participate, a rehabilitation facility must agree to enroll 25 all of its employees and remit the entire cost of providing 26 such coverage for its employees, except that the 27 rehabilitation facility shall not be required to enroll those 28 of its employees who are covered spouses or dependents under 29 this plan or another group policy or plan providing health 30 benefits as long as (1) an appropriate official from the 31 rehabilitation facility attests that each employee not 32 enrolled is a covered spouse or dependent under this plan or 33 another group policy or plan, and (2) at least 85% of the 34 employees are enrolled and the rehabilitation facility remits HB2514 Engrossed -23- LRB093 08477 JLS 08701 b 1 the entire cost of providing coverage to those employees. 2 Employees of a participating rehabilitation facility who are 3 not enrolled due to coverage under another group health 4 policy or plan may enroll in the event of a qualifying change 5 in status, special enrollment, special circumstance as 6 defined by the Director, or during the annual Benefit Choice 7 Period. A participating rehabilitation facility may also 8 elect to cover its annuitants. Dependent coverage shall be 9 offered on an optional basis, with the costs paid by the 10 rehabilitation facility, its employees, or some combination 11 of the 2 as determined by the rehabilitation facility. The 12 rehabilitation facility shall be responsible for timely 13 collection and transmission of dependent premiums. 14 The Director shall annually determine quarterly rates of 15 payment, subject to the following constraints: 16 (1) In the first year of coverage, the rates shall 17 be equal to the amount normally charged to State 18 employees for elected optional coverages or for enrolled 19 dependents coverages or other contributory coverages on 20 behalf of its employees, adjusted for differences between 21 State employees and employees of the rehabilitation 22 facility in age, sex, geographic location or other 23 relevant demographic variables, plus an amount sufficient 24 to pay for the additional administrative costs of 25 providing coverage to employees of the rehabilitation 26 facility and their dependents. 27 (2) In subsequent years, a further adjustment shall 28 be made to reflect the actual prior years' claims 29 experience of the employees of the rehabilitation 30 facility. 31 Monthly payments by the rehabilitation facility or its 32 employees for group health benefits shall be deposited in the 33 Local Government Health Insurance Reserve Fund. 34 (k) Any domestic violence shelter or service within the HB2514 Engrossed -24- LRB093 08477 JLS 08701 b 1 State of Illinois may apply to the Director to have its 2 employees, annuitants, and their dependents provided group 3 health coverage under this Act on a non-insured basis. To 4 participate, a domestic violence shelter or service must 5 agree to enroll all of its employees and pay the entire cost 6 of providing such coverage for its employees. A 7 participating domestic violence shelter may also elect to 8 cover its annuitants. Dependent coverage shall be offered on 9 an optional basis, with the costs paid by the domestic 10 violence shelter or service, its employees, or some 11 combination of the 2 as determined by the domestic violence 12 shelter or service. The domestic violence shelter or service 13 shall be responsible for timely collection and transmission 14 of dependent premiums. 15 The Director shall annually determine rates of payment, 16 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 on 21 behalf of its employees, adjusted for differences between 22 State employees and employees of the domestic violence 23 shelter or service in age, sex, geographic location or 24 other relevant demographic variables, plus an amount 25 sufficient to pay for the additional administrative costs 26 of providing coverage to employees of the domestic 27 violence shelter or service and their dependents. 28 (2) In subsequent years, a further adjustment shall 29 be made to reflect the actual prior years' claims 30 experience of the employees of the domestic violence 31 shelter or service. 32 Monthly payments by the domestic violence shelter or 33 service or its employees for group health insurance shall be 34 deposited in the Local Government Health Insurance Reserve HB2514 Engrossed -25- LRB093 08477 JLS 08701 b 1 Fund. 2 (k-5) Any qualified small business within the State of 3 Illinois may apply to the Director to have its employees, 4 annuitants, and their dependents provided group health 5 coverage under this Act on a non-insured basis. The 6 Department may set a limit on the number of qualified small 7 businesses that may receive group health coverage under this 8 subsection (k-5). In order to control its costs, the 9 Department may designate which plans it will offer to 10 qualified small businesses under this subsection (k-5). Those 11 plans may include, but need not be limited to, minimum, 12 limited, or comprehensive coverage plans; Health Maintenance 13 Organization and Preferred Provider Organization plans; and 14 medical savings plans. The plans may include the utilization 15 of insurance producers in the marketing of coverage under the 16 plans. In offering plans under this subsection (k-5) the 17 Department shall be subject to ratings and minimum coverage 18 in the same manner as a private insurer. Any plan offered 19 under this subsection (k-5) may provide for employee 20 contributions to the cost of the plan. A qualified small 21 business may select one or more of the plans offered by the 22 Department to offer to its employees. To participate, a 23 qualified small business must agree to offer to enroll all of 24 its employees and remit the entire cost of providing such 25 coverage for its employees, except that the qualified small 26 business shall not be required to enroll those of its 27 employees who waive coverage under this subsection (k-5) 28 because they are covered spouses or dependents under another 29 group policy or plan providing health benefits as long as (1) 30 an appropriate official from the qualified small business 31 attests that each employee not enrolled is a covered spouse 32 or dependent under another group policy or plan and (2) at 33 least 75% of the remaining employees are enrolled. A 34 participating qualified small business may also elect to HB2514 Engrossed -26- LRB093 08477 JLS 08701 b 1 cover its annuitants. Dependent coverage shall be offered on 2 an optional basis, with the costs paid by the small business, 3 its employees, or some combination of the 2 as determined by 4 the qualified small business. The qualified small business 5 shall be responsible for timely collection and transmission 6 of all premiums. 7 The Director shall annually determine rates of payment 8 taking into consideration, among other things, the following: 9 (1) In the first year of coverage, the rates shall 10 be equal to the amount normally charged to State 11 employees for elected optional coverages or for enrolled 12 dependents coverages or other contributory coverages on 13 behalf of its employees, adjusted for differences between 14 State employees and employees of the qualified small 15 business in age, sex, geographic location or other 16 relevant demographic variables, plus an amount sufficient 17 to pay for the additional administrative costs of 18 providing coverage to employees of the qualified small 19 business and their dependents. 20 (2) In subsequent years, a further adjustment shall 21 be made to reflect the actual prior years' claims 22 experience of the employees of the qualified small 23 business. 24 Monthly payments by the qualified small business for 25 group health insurance shall be deposited into the Small 26 Employers Health Insurance Reserve Fund. The Small Employers 27 Health Insurance Reserve Fund shall be a continuing fund not 28 subject to fiscal year limitations. All expenditures from 29 this fund shall be used for payments for health care benefits 30 for employees of qualified small businesses and their 31 annuitants and dependents and to reimburse the Department or 32 its administrative service organization for all expenses 33 incurred in the administration of benefits. No State funds, 34 other than those specifically appropriated, may be used for HB2514 Engrossed -27- LRB093 08477 JLS 08701 b 1 these purposes. 2 (l) A public community college or entity organized 3 pursuant to the Public Community College Act may apply to the 4 Director initially to have only annuitants not covered prior 5 to July 1, 1992 by the district's health plan provided health 6 coverage under this Act on a non-insured basis. The 7 community college must execute a 2-year contract to 8 participate in the Local Government Health Plan. Any 9 annuitant may enroll in the event of a qualifying change in 10 status, special enrollment, special circumstance as defined 11 by the Director, or during the annual Benefit Choice Period. 12 The Director shall annually determine monthly rates of 13 payment subject to the following constraints: for those 14 community colleges with annuitants only enrolled, first year 15 rates shall be equal to the average cost to cover claims for 16 a State member adjusted for demographics, Medicare 17 participation, and other factors; and in the second year, a 18 further adjustment of rates shall be made to reflect the 19 actual first year's claims experience of the covered 20 annuitants. 21 (l-5) The provisions of subsection (l) become 22 inoperative on July 1, 1999. 23 (m) The Director shall adopt any rules deemed necessary 24 for implementation of this amendatory Act of 1989 (Public Act 25 86-978). 26 (Source: P.A. 91-280, eff. 7-23-99; 91-311; eff. 7-29-99; 27 91-357, eff. 7-29-99; 91-390, eff. 7-30-99; 91-395, eff. 28 7-30-99; 91-617, eff. 8-19-99; 92-16, eff. 6-28-01; revised 29 2-25-02.) 30 (5 ILCS 375/13.2) (from Ch. 127, par. 533.2) 31 Sec. 13.2. Insurance reserve funds; investments. All 32 amounts held in the Health Insurance Reserve Fund, the Group 33 Insurance Premium Fund, the Small Employers Health Insurance HB2514 Engrossed -28- LRB093 08477 JLS 08701 b 1 Reserve Fund, and the Local Government Health Insurance 2 Reserve Fund shall be invested, at interest, by the State 3 Treasurer. The investments shall be subject to terms, 4 conditions, and limitations imposed by the laws of Illinois 5 on State funds. All income derived from the investments 6 shall accrue and be deposited to the respective funds no less 7 frequently than quarterly. The Health Insurance Reserve 8 Fund, the Small Employers Health Insurance Reserve Fund, and 9 the Local Government Health Insurance Reserve Fund shall be 10 administered by the Director. 11 (Source: P.A. 91-390, eff. 7-30-99.) 12 (5 ILCS 375/15) (from Ch. 127, par. 535) 13 Sec. 15. Administration; rules; audit; review. 14 (a) The Director shall administer this Act and shall 15 prescribe such rules and regulations as are necessary to give 16 full effect to the purposes of this Act. 17 (b) These rules may fix reasonable standards for the 18 group life and group health programs and other benefit 19 programs offered under this Act, and for the contractors 20 providing them. 21 (c) These rules shall specify that covered and optional 22 medical services of the program are services provided within 23 the scope of their licenses by practitioners in all 24 categories licensed under the Medical Practice Act of 1987 25 and shall provide that all eligible persons be fully informed 26 of this specification. 27 (d) These rules shall establish eligibility requirements 28 for members and dependents as may be necessary to supplement 29 or clarify requirements contained in this Act. 30 (e) Each affected department of the State, the State 31 Universities Retirement System, the Teachers' Retirement 32 System, and each qualified local government, rehabilitation 33 facility,ordomestic violence shelter or service, or small HB2514 Engrossed -29- LRB093 08477 JLS 08701 b 1 business shall keep such records, make such certifications, 2 and furnish the Director such information as may be necessary 3 for the administration of this Act, including information 4 concerning number and total amounts of payroll of employees 5 of the department who are paid from trust funds or federal 6 funds. 7 (f) Each member, each community college benefit 8 recipient to whom this Act applies, and each TRS benefit 9 recipient to whom this Act applies shall furnish the 10 Director, in such form as may be required, any information 11 that may be necessary to enroll such member or benefit 12 recipient and, if applicable, his or her dependents or 13 dependent beneficiaries under the programs or plan, including 14 such data as may be required to allow the Director to 15 accumulate statistics on data normally considered in 16 actuarial studies of employee groups. Information about 17 community college benefit recipients and community college 18 dependent beneficiaries shall be furnished through the State 19 Universities Retirement System. Information about TRS 20 benefit recipients and TRS dependent beneficiaries shall be 21 furnished through the Teachers' Retirement System. 22 (g) There shall be audits and reports on the programs 23 authorized and established by this Act prepared by the 24 Director with the assistance of a qualified, independent 25 accounting firm. The reports shall provide information on 26 the experience, and administrative effectiveness and adequacy 27 of the program including, when applicable, recommendations on 28 up-grading of benefits and improvement of the program. 29 (h) Any final order, decision or other determination 30 made, issued or executed by the Director under the provisions 31 of this Act whereby any contractor or person is aggrieved 32 shall be subject to review in accordance with the provisions 33 of the Administrative Review Law and all amendments and 34 modifications thereof, and the rules adopted pursuant HB2514 Engrossed -30- LRB093 08477 JLS 08701 b 1 thereto, shall apply to and govern all proceedings for the 2 judicial review of final administrative decisions of the 3 Director. 4 (Source: P.A. 90-497, eff. 8-18-97; 91-390, eff. 7-30-99.) 5 Section 10. The State Finance Act is amended by changing 6 Section 25 as follows: 7 (30 ILCS 105/25) (from Ch. 127, par. 161) 8 Sec. 25. Fiscal year limitations. 9 (a) All appropriations shall be available for 10 expenditure for the fiscal year or for a lesser period if the 11 Act making that appropriation so specifies. A deficiency or 12 emergency appropriation shall be available for expenditure 13 only through June 30 of the year when the Act making that 14 appropriation is enacted unless that Act otherwise provides. 15 (b) Outstanding liabilities as of June 30, payable from 16 appropriations which have otherwise expired, may be paid out 17 of the expiring appropriations during the 2-month period 18 ending at the close of business on August 31. Any service 19 involving professional or artistic skills or any personal 20 services by an employee whose compensation is subject to 21 income tax withholding must be performed as of June 30 of the 22 fiscal year in order to be considered an "outstanding 23 liability as of June 30" that is thereby eligible for payment 24 out of the expiring appropriation. 25 However, payment of tuition reimbursement claims under 26 Section 14-7.03 or 18-3 of the School Code may be made by the 27 State Board of Education from its appropriations for those 28 respective purposes for any fiscal year, even though the 29 claims reimbursed by the payment may be claims attributable 30 to a prior fiscal year, and payments may be made at the 31 direction of the State Superintendent of Education from the 32 fund from which the appropriation is made without regard to HB2514 Engrossed -31- LRB093 08477 JLS 08701 b 1 any fiscal year limitations. 2 Medical payments may be made by the Department of 3 Veterans' Affairs from its appropriations for those purposes 4 for any fiscal year, without regard to the fact that the 5 medical services being compensated for by such payment may 6 have been rendered in a prior fiscal year. 7 Medical payments may be made by the Department of Public 8 Aid and child care payments may be made by the Department of 9 Human Services (as successor to the Department of Public Aid) 10 from appropriations for those purposes for any fiscal year, 11 without regard to the fact that the medical or child care 12 services being compensated for by such payment may have been 13 rendered in a prior fiscal year; and payments may be made at 14 the direction of the Department of Central Management 15 Services from the Health Insurance Reserve Fund, the Small 16 Employers Health Insurance Reserve Fund, and the Local 17 Government Health Insurance Reserve Fund without regard to 18 any fiscal year limitations. 19 Additionally, payments may be made by the Department of 20 Human Services from its appropriations, or any other State 21 agency from its appropriations with the approval of the 22 Department of Human Services, from the Immigration Reform and 23 Control Fund for purposes authorized pursuant to the 24 Immigration Reform and Control Act of 1986, without regard to 25 any fiscal year limitations. 26 Further, with respect to costs incurred in fiscal years 27 2002 and 2003 only, payments may be made by the State 28 Treasurer from its appropriations from the Capital Litigation 29 Trust Fund without regard to any fiscal year limitations. 30 (c) Further, payments may be made by the Department of 31 Public Health and the Department of Human Services (acting as 32 successor to the Department of Public Health under the 33 Department of Human Services Act) from their respective 34 appropriations for grants for medical care to or on behalf of HB2514 Engrossed -32- LRB093 08477 JLS 08701 b 1 persons suffering from chronic renal disease, persons 2 suffering from hemophilia, rape victims, and premature and 3 high-mortality risk infants and their mothers and for grants 4 for supplemental food supplies provided under the United 5 States Department of Agriculture Women, Infants and Children 6 Nutrition Program, for any fiscal year without regard to the 7 fact that the services being compensated for by such payment 8 may have been rendered in a prior fiscal year. 9 (d) The Department of Public Health and the Department 10 of Human Services (acting as successor to the Department of 11 Public Health under the Department of Human Services Act) 12 shall each annually submit to the State Comptroller, Senate 13 President, Senate Minority Leader, Speaker of the House, 14 House Minority Leader, and the respective Chairmen and 15 Minority Spokesmen of the Appropriations Committees of the 16 Senate and the House, on or before December 31, a report of 17 fiscal year funds used to pay for services provided in any 18 prior fiscal year. This report shall document by program or 19 service category those expenditures from the most recently 20 completed fiscal year used to pay for services provided in 21 prior fiscal years. 22 (e) The Department of Public Aid and the Department of 23 Human Services (acting as successor to the Department of 24 Public Aid) shall each annually submit to the State 25 Comptroller, Senate President, Senate Minority Leader, 26 Speaker of the House, House Minority Leader, the respective 27 Chairmen and Minority Spokesmen of the Appropriations 28 Committees of the Senate and the House, on or before November 29 30, a report that shall document by program or service 30 category those expenditures from the most recently completed 31 fiscal year used to pay for (i) services provided in prior 32 fiscal years and (ii) services for which claims were received 33 in prior fiscal years. 34 (f) The Department of Human Services (as successor to HB2514 Engrossed -33- LRB093 08477 JLS 08701 b 1 the Department of Public Aid) shall annually submit to the 2 State Comptroller, Senate President, Senate Minority Leader, 3 Speaker of the House, House Minority Leader, and the 4 respective Chairmen and Minority Spokesmen of the 5 Appropriations Committees of the Senate and the House, on or 6 before December 31, a report of fiscal year funds used to pay 7 for services (other than medical care) provided in any prior 8 fiscal year. This report shall document by program or 9 service category those expenditures from the most recently 10 completed fiscal year used to pay for services provided in 11 prior fiscal years. 12 (g) In addition, each annual report required to be 13 submitted by the Department of Public Aid under subsection 14 (e) shall include the following information with respect to 15 the State's Medicaid program: 16 (1) Explanations of the exact causes of the 17 variance between the previous year's estimated and actual 18 liabilities. 19 (2) Factors affecting the Department of Public 20 Aid's liabilities, including but not limited to numbers 21 of aid recipients, levels of medical service utilization 22 by aid recipients, and inflation in the cost of medical 23 services. 24 (3) The results of the Department's efforts to 25 combat fraud and abuse. 26 (h) As provided in Section 4 of the General Assembly 27 Compensation Act, any utility bill for service provided to a 28 General Assembly member's district office for a period 29 including portions of 2 consecutive fiscal years may be paid 30 from funds appropriated for such expenditure in either fiscal 31 year. 32 (i) An agency which administers a fund classified by the 33 Comptroller as an internal service fund may issue rules for: 34 (1) billing user agencies in advance based on HB2514 Engrossed -34- LRB093 08477 JLS 08701 b 1 estimated charges for goods or services; 2 (2) issuing credits during the subsequent fiscal 3 year for all user agency payments received during the 4 prior fiscal year which were in excess of the final 5 amounts owed by the user agency for that period; and 6 (3) issuing catch-up billings to user agencies 7 during the subsequent fiscal year for amounts remaining 8 due when payments received from the user agency during 9 the prior fiscal year were less than the total amount 10 owed for that period. 11 User agencies are authorized to reimburse internal service 12 funds for catch-up billings by vouchers drawn against their 13 respective appropriations for the fiscal year in which the 14 catch-up billing was issued. 15 (Source: P.A. 92-885, eff. 1-13-03.) 16 Section 99. Effective date. This Act takes effect on 17 January 1, 2004.