093_HB2514ham001 LRB093 08477 JLS 14298 a 1 AMENDMENT TO HOUSE BILL 2514 2 AMENDMENT NO. . Amend House Bill 2514 by replacing 3 the title with the following: 4 "AN ACT concerning health coverage under State employee 5 programs."; and 6 by replacing everything after the enacting clause with the 7 following: 8 "Section 5. The State Employees Group Insurance Act of 9 1971 is amended by changing Sections 2, 3, 10, 13.2, and 15 10 as follows: 11 (5 ILCS 375/2) (from Ch. 127, par. 522) 12 Sec. 2. Purpose. The purpose of this Act is to provide a 13 program of group life insurance, a program of health benefits 14 and other employee benefits for persons in the service of the 15 State of Illinois, employees of local governments, employees 16 of rehabilitation facilities and employees of domestic 17 violence shelters and services, and certain of their 18 dependents. It is also the purpose of this Act to provide a 19 program of health benefits (i) for certain benefit recipients 20 of the Teachers' Retirement System of the State of Illinois 21 and their dependent beneficiaries and (ii) for certain -2- LRB093 08477 JLS 14298 a 1 eligible retired community college employees and their 2 dependent beneficiaries. It is also the purpose of this Act 3 to provide a program of health benefits for owners and 4 employees of qualified small businesses and their dependents. 5 (Source: P.A. 89-25, eff. 6-21-95; 90-497, eff. 8-18-97.) 6 (5 ILCS 375/3) (from Ch. 127, par. 523) 7 Sec. 3. Definitions. Unless the context otherwise 8 requires, the following words and phrases as used in this Act 9 shall have the following meanings. The Department may define 10 these and other words and phrases separately for the purpose 11 of implementing specific programs providing benefits under 12 this Act. 13 (a) "Administrative service organization" means any 14 person, firm or corporation experienced in the handling of 15 claims which is fully qualified, financially sound and 16 capable of meeting the service requirements of a contract of 17 administration executed with the Department. 18 (b) "Annuitant" means (1) an employee who retires, or 19 has retired, on or after January 1, 1966 on an immediate 20 annuity under the provisions of Articles 2, 14, 15 (including 21 an employee who has retired under the optional retirement 22 program established under Section 15-158.2), paragraphs (2), 23 (3), or (5) of Section 16-106, or Article 18 of the Illinois 24 Pension Code; (2) any person who was receiving group 25 insurance coverage under this Act as of March 31, 1978 by 26 reason of his status as an annuitant, even though the annuity 27 in relation to which such coverage was provided is a 28 proportional annuity based on less than the minimum period of 29 service required for a retirement annuity in the system 30 involved; (3) any person not otherwise covered by this Act 31 who has retired as a participating member under Article 2 of 32 the Illinois Pension Code but is ineligible for the 33 retirement annuity under Section 2-119 of the Illinois -3- LRB093 08477 JLS 14298 a 1 Pension Code; (4) the spouse of any person who is receiving a 2 retirement annuity under Article 18 of the Illinois Pension 3 Code and who is covered under a group health insurance 4 program sponsored by a governmental employer other than the 5 State of Illinois and who has irrevocably elected to waive 6 his or her coverage under this Act and to have his or her 7 spouse considered as the "annuitant" under this Act and not 8 as a "dependent";or(5) an employee who retires, or has 9 retired, from a qualified position, as determined according 10 to rules promulgated by the Director, under a qualified local 11 government or a qualified rehabilitation facility or a 12 qualified domestic violence shelter or service; or (6) an 13 owner or employee who retires, or has retired, from a 14 qualified position, as determined according to rules 15 promulgated by the Director, with a qualified small business. 16 (For definition of "retired employee", see (p) post). 17 (b-5) "New SERS annuitant" means a person who, on or 18 after January 1, 1998, becomes an annuitant, as defined in 19 subsection (b), by virtue of beginning to receive a 20 retirement annuity under Article 14 of the Illinois Pension 21 Code, and is eligible to participate in the basic program of 22 group health benefits provided for annuitants under this Act. 23 (b-6) "New SURS annuitant" means a person who (1) on or 24 after January 1, 1998, becomes an annuitant, as defined in 25 subsection (b), by virtue of beginning to receive a 26 retirement annuity under Article 15 of the Illinois Pension 27 Code, (2) has not made the election authorized under Section 28 15-135.1 of the Illinois Pension Code, and (3) is eligible to 29 participate in the basic program of group health benefits 30 provided for annuitants under this Act. 31 (b-7) "New TRS State annuitant" means a person who, on 32 or after July 1, 1998, becomes an annuitant, as defined in 33 subsection (b), by virtue of beginning to receive a 34 retirement annuity under Article 16 of the Illinois Pension -4- LRB093 08477 JLS 14298 a 1 Code based on service as a teacher as defined in paragraph 2 (2), (3), or (5) of Section 16-106 of that Code, and is 3 eligible to participate in the basic program of group health 4 benefits provided for annuitants under this Act. 5 (c) "Carrier" means (1) an insurance company, a 6 corporation organized under the Limited Health Service 7 Organization Act or the Voluntary Health Services Plan Act, a 8 partnership, or other nongovernmental organization, which is 9 authorized to do group life or group health insurance 10 business in Illinois, or (2) the State of Illinois as a 11 self-insurer. 12 (d) "Compensation" means salary or wages payable on a 13 regular payroll by the State Treasurer on a warrant of the 14 State Comptroller out of any State, trust or federal fund, or 15 by the Governor of the State through a disbursing officer of 16 the State out of a trust or out of federal funds, or by any 17 Department out of State, trust, federal or other funds held 18 by the State Treasurer or the Department, to any person for 19 personal services currently performed, and ordinary or 20 accidental disability benefits under Articles 2, 14, 15 21 (including ordinary or accidental disability benefits under 22 the optional retirement program established under Section 23 15-158.2), paragraphs (2), (3), or (5) of Section 16-106, or 24 Article 18 of the Illinois Pension Code, for disability 25 incurred after January 1, 1966, or benefits payable under the 26 Workers' Compensation or Occupational Diseases Act or 27 benefits payable under a sick pay plan established in 28 accordance with Section 36 of the State Finance Act. 29 "Compensation" also means salary or wages paid to an employee 30 of any qualified local government or qualified rehabilitation 31 facility or a qualified domestic violence shelter or service. 32 "Compensation" also means salary or wages paid to an employee 33 or owner of a qualified small business. 34 (e) "Commission" means the State Employees Group -5- LRB093 08477 JLS 14298 a 1 Insurance Advisory Commission authorized by this Act. 2 Commencing July 1, 1984, "Commission" as used in this Act 3 means the Illinois Economic and Fiscal Commission as 4 established by the Legislative Commission Reorganization Act 5 of 1984. 6 (f) "Contributory", when referred to as contributory 7 coverage, shall mean optional coverages or benefits elected 8 by the member toward the cost of which such member makes 9 contribution, or which are funded in whole or in part through 10 the acceptance of a reduction in earnings or the foregoing of 11 an increase in earnings by an employee, as distinguished from 12 noncontributory coverage or benefits which are paid entirely 13 by the State of Illinois without reduction of the member's 14 salary. 15 (g) "Department" means any department, institution, 16 board, commission, officer, court or any agency of the State 17 government receiving appropriations and having power to 18 certify payrolls to the Comptroller authorizing payments of 19 salary and wages against such appropriations as are made by 20 the General Assembly from any State fund, or against trust 21 funds held by the State Treasurer and includes boards of 22 trustees of the retirement systems created by Articles 2, 14, 23 15, 16 and 18 of the Illinois Pension Code. "Department" 24 also includes the Illinois Comprehensive Health Insurance 25 Board, the Board of Examiners established under the Illinois 26 Public Accounting Act, and the Illinois Rural Bond Bank. 27 (h) "Dependent", when the term is used in the context of 28 the health and life plan, means a member's spouse and any 29 unmarried child (1) from birth to age 19 including an adopted 30 child, a child who lives with the member from the time of the 31 filing of a petition for adoption until entry of an order of 32 adoption, a stepchild or recognized child who lives with the 33 member in a parent-child relationship, or a child who lives 34 with the member if such member is a court appointed guardian -6- LRB093 08477 JLS 14298 a 1 of the child, or (2) age 19 to 23 enrolled as a full-time 2 student in any accredited school, financially dependent upon 3 the member, and eligible to be claimed as a dependent for 4 income tax purposes, or (3) age 19 or over who is mentally or 5 physically handicapped. For the health plan only, the term 6 "dependent" also includes any person enrolled prior to the 7 effective date of this Section who is dependent upon the 8 member to the extent that the member may claim such person as 9 a dependent for income tax deduction purposes; no other such 10 person may be enrolled. For the health plan only, the term 11 "dependent" also includes any person who has received after 12 June 30, 2000 an organ transplant and who is financially 13 dependent upon the member and eligible to be claimed as a 14 dependent for income tax purposes. 15 (i) "Director" means the Director of the Illinois 16 Department of Central Management Services. 17 (j) "Eligibility period" means the period of time a 18 member has to elect enrollment in programs or to select 19 benefits without regard to age, sex or health. 20 (k) "Employee" means and includes each officer or 21 employee in the service of a department who (1) receives his 22 compensation for service rendered to the department on a 23 warrant issued pursuant to a payroll certified by a 24 department or on a warrant or check issued and drawn by a 25 department upon a trust, federal or other fund or on a 26 warrant issued pursuant to a payroll certified by an elected 27 or duly appointed officer of the State or who receives 28 payment of the performance of personal services on a warrant 29 issued pursuant to a payroll certified by a Department and 30 drawn by the Comptroller upon the State Treasurer against 31 appropriations made by the General Assembly from any fund or 32 against trust funds held by the State Treasurer, and (2) is 33 employed full-time or part-time in a position normally 34 requiring actual performance of duty during not less than 1/2 -7- LRB093 08477 JLS 14298 a 1 of a normal work period, as established by the Director in 2 cooperation with each department, except that persons elected 3 by popular vote will be considered employees during the 4 entire term for which they are elected regardless of hours 5 devoted to the service of the State, and (3) except that 6 "employee" does not include any person who is not eligible by 7 reason of such person's employment to participate in one of 8 the State retirement systems under Articles 2, 14, 15 (either 9 the regular Article 15 system or the optional retirement 10 program established under Section 15-158.2) or 18, or under 11 paragraph (2), (3), or (5) of Section 16-106, of the Illinois 12 Pension Code, but such term does include persons who are 13 employed during the 6 month qualifying period under Article 14 14 of the Illinois Pension Code. Such term also includes any 15 person who (1) after January 1, 1966, is receiving ordinary 16 or accidental disability benefits under Articles 2, 14, 15 17 (including ordinary or accidental disability benefits under 18 the optional retirement program established under Section 19 15-158.2), paragraphs (2), (3), or (5) of Section 16-106, or 20 Article 18 of the Illinois Pension Code, for disability 21 incurred after January 1, 1966, (2) receives total permanent 22 or total temporary disability under the Workers' Compensation 23 Act or Occupational Disease Act as a result of injuries 24 sustained or illness contracted in the course of employment 25 with the State of Illinois, or (3) is not otherwise covered 26 under this Act and has retired as a participating member 27 under Article 2 of the Illinois Pension Code but is 28 ineligible for the retirement annuity under Section 2-119 of 29 the Illinois Pension Code. However, a person who satisfies 30 the criteria of the foregoing definition of "employee" except 31 that such person is made ineligible to participate in the 32 State Universities Retirement System by clause (4) of 33 subsection (a) of Section 15-107 of the Illinois Pension Code 34 is also an "employee" for the purposes of this Act. -8- LRB093 08477 JLS 14298 a 1 "Employee" also includes any person receiving or eligible for 2 benefits under a sick pay plan established in accordance with 3 Section 36 of the State Finance Act. "Employee" also includes 4 each officer or employee in the service of a qualified local 5 government, including persons appointed as trustees of 6 sanitary districts regardless of hours devoted to the service 7 of the sanitary district, and each employee in the service of 8 a qualified rehabilitation facility and each full-time 9 employee in the service of a qualified domestic violence 10 shelter or service, as determined according to rules 11 promulgated by the Director. "Employee" also includes an 12 owner and a full-time employee in the service of a qualified 13 small business, as determined according to rules promulgated 14 by the Director. 15 (l) "Member" means an employee, annuitant, retired 16 employee or survivor. 17 (m) "Optional coverages or benefits" means those 18 coverages or benefits available to the member on his or her 19 voluntary election, and at his or her own expense. 20 (n) "Program" means the group life insurance, health 21 benefits and other employee benefits designed and contracted 22 for by the Director under this Act. 23 (o) "Health plan" means a health benefits program 24 offered by the State of Illinois for persons eligible for the 25 plan. 26 (p) "Retired employee" means any person who would be an 27 annuitant as that term is defined herein but for the fact 28 that such person retired prior to January 1, 1966. Such term 29 also includes any person formerly employed by the University 30 of Illinois in the Cooperative Extension Service who would be 31 an annuitant but for the fact that such person was made 32 ineligible to participate in the State Universities 33 Retirement System by clause (4) of subsection (a) of Section 34 15-107 of the Illinois Pension Code. -9- LRB093 08477 JLS 14298 a 1 (q) "Survivor" means a person receiving an annuity as a 2 survivor of an employee or of an annuitant. "Survivor" also 3 includes: (1) the surviving dependent of a person who 4 satisfies the definition of "employee" except that such 5 person is made ineligible to participate in the State 6 Universities Retirement System by clause (4) of subsection 7 (a) of Section 15-107 of the Illinois Pension Code; and (2) 8 the surviving dependent of any person formerly employed by 9 the University of Illinois in the Cooperative Extension 10 Service who would be an annuitant except for the fact that 11 such person was made ineligible to participate in the State 12 Universities Retirement System by clause (4) of subsection 13 (a) of Section 15-107 of the Illinois Pension Code. 14 (q-5) "New SERS survivor" means a survivor, as defined 15 in subsection (q), whose annuity is paid under Article 14 of 16 the Illinois Pension Code and is based on the death of (i) an 17 employee whose death occurs on or after January 1, 1998, or 18 (ii) a new SERS annuitant as defined in subsection (b-5). 19 (q-6) "New SURS survivor" means a survivor, as defined 20 in subsection (q), whose annuity is paid under Article 15 of 21 the Illinois Pension Code and is based on the death of (i) an 22 employee whose death occurs on or after January 1, 1998, or 23 (ii) a new SURS annuitant as defined in subsection (b-6). 24 (q-7) "New TRS State survivor" means a survivor, as 25 defined in subsection (q), whose annuity is paid under 26 Article 16 of the Illinois Pension Code and is based on the 27 death of (i) an employee who is a teacher as defined in 28 paragraph (2), (3), or (5) of Section 16-106 of that Code and 29 whose death occurs on or after July 1, 1998, or (ii) a new 30 TRS State annuitant as defined in subsection (b-7). 31 (r) "Medical services" means the services provided 32 within the scope of their licenses by practitioners in all 33 categories licensed under the Medical Practice Act of 1987. 34 (s) "Unit of local government" means any county, -10- LRB093 08477 JLS 14298 a 1 municipality, township, school district (including a 2 combination of school districts under the Intergovernmental 3 Cooperation Act), special district or other unit, designated 4 as a unit of local government by law, which exercises limited 5 governmental powers or powers in respect to limited 6 governmental subjects, any not-for-profit association with a 7 membership that primarily includes townships and township 8 officials, that has duties that include provision of research 9 service, dissemination of information, and other acts for the 10 purpose of improving township government, and that is funded 11 wholly or partly in accordance with Section 85-15 of the 12 Township Code; any not-for-profit corporation or association, 13 with a membership consisting primarily of municipalities, 14 that operates its own utility system, and provides research, 15 training, dissemination of information, or other acts to 16 promote cooperation between and among municipalities that 17 provide utility services and for the advancement of the goals 18 and purposes of its membership; the Southern Illinois 19 Collegiate Common Market, which is a consortium of higher 20 education institutions in Southern Illinois; and the Illinois 21 Association of Park Districts. "Qualified local government" 22 means a unit of local government approved by the Director and 23 participating in a program created under subsection (i) of 24 Section 10 of this Act. 25 (t) "Qualified rehabilitation facility" means any 26 not-for-profit organization that is accredited by the 27 Commission on Accreditation of Rehabilitation Facilities or 28 certified by the Department of Human Services (as successor 29 to the Department of Mental Health and Developmental 30 Disabilities) to provide services to persons with 31 disabilities and which receives funds from the State of 32 Illinois for providing those services, approved by the 33 Director and participating in a program created under 34 subsection (j) of Section 10 of this Act. -11- LRB093 08477 JLS 14298 a 1 (u) "Qualified domestic violence shelter or service" 2 means any Illinois domestic violence shelter or service and 3 its administrative offices funded by the Department of Human 4 Services (as successor to the Illinois Department of Public 5 Aid), approved by the Director and participating in a program 6 created under subsection (k) of Section 10. 7 (v) "TRS benefit recipient" means a person who: 8 (1) is not a "member" as defined in this Section; 9 and 10 (2) is receiving a monthly benefit or retirement 11 annuity under Article 16 of the Illinois Pension Code; 12 and 13 (3) either (i) has at least 8 years of creditable 14 service under Article 16 of the Illinois Pension Code, or 15 (ii) was enrolled in the health insurance program offered 16 under that Article on January 1, 1996, or (iii) is the 17 survivor of a benefit recipient who had at least 8 years 18 of creditable service under Article 16 of the Illinois 19 Pension Code or was enrolled in the health insurance 20 program offered under that Article on the effective date 21 of this amendatory Act of 1995, or (iv) is a recipient or 22 survivor of a recipient of a disability benefit under 23 Article 16 of the Illinois Pension Code. 24 (w) "TRS dependent beneficiary" means a person who: 25 (1) is not a "member" or "dependent" as defined in 26 this Section; and 27 (2) is a TRS benefit recipient's: (A) spouse, (B) 28 dependent parent who is receiving at least half of his or 29 her support from the TRS benefit recipient, or (C) 30 unmarried natural or adopted child who is (i) under age 31 19, or (ii) enrolled as a full-time student in an 32 accredited school, financially dependent upon the TRS 33 benefit recipient, eligible to be claimed as a dependent 34 for income tax purposes, and either is under age 24 or -12- LRB093 08477 JLS 14298 a 1 was, on January 1, 1996, participating as a dependent 2 beneficiary in the health insurance program offered under 3 Article 16 of the Illinois Pension Code, or (iii) age 19 4 or over who is mentally or physically handicapped. 5 (x) "Military leave with pay and benefits" refers to 6 individuals in basic training for reserves, special/advanced 7 training, annual training, emergency call up, or activation 8 by the President of the United States with approved pay and 9 benefits. 10 (y) "Military leave without pay and benefits" refers to 11 individuals who enlist for active duty in a regular component 12 of the U.S. Armed Forces or other duty not specified or 13 authorized under military leave with pay and benefits. 14 (z) "Community college benefit recipient" means a person 15 who: 16 (1) is not a "member" as defined in this Section; 17 and 18 (2) is receiving a monthly survivor's annuity or 19 retirement annuity under Article 15 of the Illinois 20 Pension Code; and 21 (3) either (i) was a full-time employee of a 22 community college district or an association of community 23 college boards created under the Public Community College 24 Act (other than an employee whose last employer under 25 Article 15 of the Illinois Pension Code was a community 26 college district subject to Article VII of the Public 27 Community College Act) and was eligible to participate in 28 a group health benefit plan as an employee during the 29 time of employment with a community college district 30 (other than a community college district subject to 31 Article VII of the Public Community College Act) or an 32 association of community college boards, or (ii) is the 33 survivor of a person described in item (i). 34 (aa) "Community college dependent beneficiary" means a -13- LRB093 08477 JLS 14298 a 1 person who: 2 (1) is not a "member" or "dependent" as defined in 3 this Section; and 4 (2) is a community college benefit recipient's: (A) 5 spouse, (B) dependent parent who is receiving at least 6 half of his or her support from the community college 7 benefit recipient, or (C) unmarried natural or adopted 8 child who is (i) under age 19, or (ii) enrolled as a 9 full-time student in an accredited school, financially 10 dependent upon the community college benefit recipient, 11 eligible to be claimed as a dependent for income tax 12 purposes and under age 23, or (iii) age 19 or over and 13 mentally or physically handicapped. 14 (bb) "Qualified small business" means a business 15 situated in Illinois having 50 or fewer employees, approved 16 by the Director and participating in a program created under 17 subsection (k-5) of Section 10. 18 (Source: P.A. 91-390, eff. 7-30-99; 91-395, eff. 7-30-99; 19 91-617, eff. 8-19-99; 92-16, eff. 6-28-01; 92-186, eff. 20 1-1-02; 92-204, eff. 8-1-01; 92-651, eff. 7-11-02.) 21 (5 ILCS 375/10) (from Ch. 127, par. 530) 22 Sec. 10. Payments by State; premiums. 23 (a) The State shall pay the cost of basic 24 non-contributory group life insurance and, subject to member 25 paid contributions set by the Department or required by this 26 Section, the basic program of group health benefits on each 27 eligible member, except a member, not otherwise covered by 28 this Act, who has retired as a participating member under 29 Article 2 of the Illinois Pension Code but is ineligible for 30 the retirement annuity under Section 2-119 of the Illinois 31 Pension Code, and part of each eligible member's and retired 32 member's premiums for health insurance coverage for enrolled 33 dependents as provided by Section 9. The State shall pay the -14- LRB093 08477 JLS 14298 a 1 cost of the basic program of group health benefits only after 2 benefits are reduced by the amount of benefits covered by 3 Medicare for all members and dependents who are eligible for 4 benefits under Social Security or the Railroad Retirement 5 system or who had sufficient Medicare-covered government 6 employment, except that such reduction in benefits shall 7 apply only to those members and dependents who (1) first 8 become eligible for such Medicare coverage on or after July 9 1, 1992; or (2) are Medicare-eligible members or dependents 10 of a local government unit which began participation in the 11 program on or after July 1, 1992; or (3) remain eligible for, 12 but no longer receive Medicare coverage which they had been 13 receiving on or after July 1, 1992. The Department may 14 determine the aggregate level of the State's contribution on 15 the basis of actual cost of medical services adjusted for 16 age, sex or geographic or other demographic characteristics 17 which affect the costs of such programs. 18 The cost of participation in the basic program of group 19 health benefits for the dependent or survivor of a living or 20 deceased retired employee who was formerly employed by the 21 University of Illinois in the Cooperative Extension Service 22 and would be an annuitant but for the fact that he or she was 23 made ineligible to participate in the State Universities 24 Retirement System by clause (4) of subsection (a) of Section 25 15-107 of the Illinois Pension Code shall not be greater than 26 the cost of participation that would otherwise apply to that 27 dependent or survivor if he or she were the dependent or 28 survivor of an annuitant under the State Universities 29 Retirement System. 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 34 program of group health benefits an amount equal to 5% of -15- LRB093 08477 JLS 14298 a 1 that cost for each full year of creditable service upon which 2 the annuitant's retirement annuity is based, up to a maximum 3 of 100% for an annuitant with 20 or more years of creditable 4 service. The remainder of the cost of a new SERS annuitant's 5 coverage under the basic program of group health benefits 6 shall be the responsibility of the annuitant. 7 (a-2) Beginning January 1, 1998, for each person who 8 becomes a new SERS survivor and participates in the basic 9 program of group health benefits, the State shall contribute 10 toward the cost of the survivor'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 the deceased employee's or 13 deceased annuitant's creditable service in the State 14 Employees' Retirement System of Illinois on the date of 15 death, up to a maximum of 100% for a survivor of an employee 16 or annuitant with 20 or more years of creditable service. 17 The remainder of the cost of the new SERS survivor's coverage 18 under the basic program of group health benefits shall be the 19 responsibility of the survivor. 20 (a-3) Beginning January 1, 1998, for each person who 21 becomes a new SURS annuitant and participates in the basic 22 program of group health benefits, the State shall contribute 23 toward the cost of the annuitant's coverage under the basic 24 program of group health benefits an amount equal to 5% of 25 that cost for each full year of creditable service upon which 26 the annuitant's retirement annuity is based, up to a maximum 27 of 100% for an annuitant with 20 or more years of creditable 28 service. The remainder of the cost of a new SURS annuitant's 29 coverage under the basic program of group health benefits 30 shall be the responsibility of the annuitant. 31 (a-4) (Blank). 32 (a-5) Beginning January 1, 1998, for each person who 33 becomes a new SURS survivor and participates in the basic 34 program of group health benefits, the State shall contribute -16- LRB093 08477 JLS 14298 a 1 toward the cost of the survivor's coverage under the basic 2 program of group health benefits an amount equal to 5% of 3 that cost for each full year of the deceased employee's or 4 deceased annuitant's creditable service in the State 5 Universities Retirement System on the date of death, up to a 6 maximum of 100% for a survivor of an employee or annuitant 7 with 20 or more years of creditable service. The remainder 8 of the cost of the new SURS survivor's coverage under the 9 basic program of group health benefits shall be the 10 responsibility of the survivor. 11 (a-6) Beginning July 1, 1998, for each person who 12 becomes a new TRS State annuitant and participates in the 13 basic program of group health benefits, the State shall 14 contribute toward the cost of the annuitant's coverage under 15 the basic program of group health benefits an amount equal to 16 5% of that cost for each full year of creditable service as a 17 teacher as defined in paragraph (2), (3), or (5) of Section 18 16-106 of the Illinois Pension Code upon which the 19 annuitant's retirement annuity is based, up to a maximum of 20 100%; except that the State contribution shall be 12.5% per 21 year (rather than 5%) for each full year of creditable 22 service as a regional superintendent or assistant regional 23 superintendent of schools. The remainder of the cost of a 24 new TRS State annuitant's coverage under the basic program of 25 group health benefits shall be the responsibility of the 26 annuitant. 27 (a-7) Beginning July 1, 1998, for each person who 28 becomes a new TRS State survivor and participates in the 29 basic program of group health benefits, the State shall 30 contribute toward the cost of the survivor's coverage under 31 the basic program of group health benefits an amount equal to 32 5% of that cost for each full year of the deceased employee's 33 or deceased annuitant's creditable service as a teacher as 34 defined in paragraph (2), (3), or (5) of Section 16-106 of -17- LRB093 08477 JLS 14298 a 1 the Illinois Pension Code on the date of death, up to a 2 maximum of 100%; except that the State contribution shall be 3 12.5% per year (rather than 5%) for each full year of the 4 deceased employee's or deceased annuitant's creditable 5 service as a regional superintendent or assistant regional 6 superintendent of schools. The remainder of the cost of the 7 new TRS State survivor's coverage under the basic program of 8 group health benefits shall be the responsibility of the 9 survivor. 10 (a-8) A new SERS annuitant, new SERS survivor, new SURS 11 annuitant, new SURS survivor, new TRS State annuitant, or new 12 TRS State survivor may waive or terminate coverage in the 13 program of group health benefits. Any such annuitant or 14 survivor who has waived or terminated coverage may enroll or 15 re-enroll in the program of group health benefits only during 16 the annual benefit choice period, as determined by the 17 Director; except that in the event of termination of coverage 18 due to nonpayment of premiums, the annuitant or survivor may 19 not re-enroll in the program. 20 (a-9) No later than May 1 of each calendar year, the 21 Director of Central Management Services shall certify in 22 writing to the Executive Secretary of the State Employees' 23 Retirement System of Illinois the amounts of the Medicare 24 supplement health care premiums and the amounts of the health 25 care premiums for all other retirees who are not Medicare 26 eligible. 27 A separate calculation of the premiums based upon the 28 actual cost of each health care plan shall be so certified. 29 The Director of Central Management Services shall provide 30 to the Executive Secretary of the State Employees' Retirement 31 System of Illinois such information, statistics, and other 32 data as he or she may require to review the premium amounts 33 certified by the Director of Central Management Services. 34 (b) State employees who become eligible for this program -18- LRB093 08477 JLS 14298 a 1 on or after January 1, 1980 in positions normally requiring 2 actual performance of duty not less than 1/2 of a normal work 3 period but not equal to that of a normal work period, shall 4 be given the option of participating in the available 5 program. If the employee elects coverage, the State shall 6 contribute on behalf of such employee to the cost of the 7 employee's benefit and any applicable dependent supplement, 8 that sum which bears the same percentage as that percentage 9 of time the employee regularly works when compared to normal 10 work period. 11 (c) The basic non-contributory coverage from the basic 12 program of group health benefits shall be continued for each 13 employee not in pay status or on active service by reason of 14 (1) leave of absence due to illness or injury, (2) authorized 15 educational leave of absence or sabbatical leave, or (3) 16 military leave with pay and benefits. This coverage shall 17 continue until expiration of authorized leave and return to 18 active service, but not to exceed 24 months for leaves under 19 item (1) or (2). This 24-month limitation and the requirement 20 of returning to active service shall not apply to persons 21 receiving ordinary or accidental disability benefits or 22 retirement benefits through the appropriate State retirement 23 system or benefits under the Workers' Compensation or 24 Occupational Disease Act. 25 (d) The basic group life insurance coverage shall 26 continue, with full State contribution, where such person is 27 (1) absent from active service by reason of disability 28 arising from any cause other than self-inflicted, (2) on 29 authorized educational leave of absence or sabbatical leave, 30 or (3) on military leave with pay and benefits. 31 (e) Where the person is in non-pay status for a period 32 in excess of 30 days or on leave of absence, other than by 33 reason of disability, educational or sabbatical leave, or 34 military leave with pay and benefits, such person may -19- LRB093 08477 JLS 14298 a 1 continue coverage only by making personal payment equal to 2 the amount normally contributed by the State on such person's 3 behalf. Such payments and coverage may be continued: (1) 4 until such time as the person returns to a status eligible 5 for coverage at State expense, but not to exceed 24 months, 6 (2) until such person's employment or annuitant status with 7 the State is terminated, or (3) for a maximum period of 4 8 years for members on military leave with pay and benefits and 9 military leave without pay and benefits (exclusive of any 10 additional service imposed pursuant to law). 11 (f) The Department shall establish by rule the extent 12 to which other employee benefits will continue for persons in 13 non-pay status or who are not in active service. 14 (g) The State shall not pay the cost of the basic 15 non-contributory group life insurance, program of health 16 benefits and other employee benefits for members who are 17 survivors as defined by paragraphs (1) and (2) of subsection 18 (q) of Section 3 of this Act. The costs of benefits for 19 these survivors shall be paid by the survivors or by the 20 University of Illinois Cooperative Extension Service, or any 21 combination thereof. However, the State shall pay the amount 22 of the reduction in the cost of participation, if any, 23 resulting from the amendment to subsection (a) made by this 24 amendatory Act of the 91st General Assembly. 25 (h) Those persons occupying positions with any 26 department as a result of emergency appointments pursuant to 27 Section 8b.8 of the Personnel Code who are not considered 28 employees under this Act shall be given the option of 29 participating in the programs of group life insurance, health 30 benefits and other employee benefits. Such persons electing 31 coverage may participate only by making payment equal to the 32 amount normally contributed by the State for similarly 33 situated employees. Such amounts shall be determined by the 34 Director. Such payments and coverage may be continued until -20- LRB093 08477 JLS 14298 a 1 such time as the person becomes an employee pursuant to this 2 Act or such person's appointment is terminated. 3 (i) Any unit of local government within the State of 4 Illinois may apply to the Director to have its employees, 5 annuitants, and their dependents provided group health 6 coverage under this Act on a non-insured basis. To 7 participate, a unit of local government must agree to enroll 8 all of its employees, who may select coverage under either 9 the State group health benefits plan or a health maintenance 10 organization that has contracted with the State to be 11 available as a health care provider for employees as defined 12 in this Act. A unit of local government must remit the 13 entire cost of providing coverage under the State group 14 health benefits plan or, for coverage under a health 15 maintenance organization, an amount determined by the 16 Director based on an analysis of the sex, age, geographic 17 location, or other relevant demographic variables for its 18 employees, except that the unit of local government shall not 19 be required to enroll those of its employees who are covered 20 spouses or dependents under this plan or another group policy 21 or plan providing health benefits as long as (1) an 22 appropriate official from the unit of local government 23 attests that each employee not enrolled is a covered spouse 24 or dependent under this plan or another group policy or plan, 25 and (2) at least 85% of the employees are enrolled and the 26 unit of local government remits the entire cost of providing 27 coverage to those employees, except that a participating 28 school district must have enrolled at least 85% of its 29 full-time employees who have not waived coverage under the 30 district's group health plan by participating in a component 31 of the district's cafeteria plan. A participating school 32 district is not required to enroll a full-time employee who 33 has waived coverage under the district's health plan, 34 provided that an appropriate official from the participating -21- LRB093 08477 JLS 14298 a 1 school district attests that the full-time employee has 2 waived coverage by participating in a component of the 3 district's cafeteria plan. For the purposes of this 4 subsection, "participating school district" includes a unit 5 of local government whose primary purpose is education as 6 defined by the Department's rules. 7 Employees of a participating unit of local government who 8 are not enrolled due to coverage under another group health 9 policy or plan may enroll in the event of a qualifying change 10 in status, special enrollment, special circumstance as 11 defined by the Director, or during the annual Benefit Choice 12 Period. A participating unit of local government may also 13 elect to cover its annuitants. Dependent coverage shall be 14 offered on an optional basis, with the costs paid by the unit 15 of local government, its employees, or some combination of 16 the two as determined by the unit of local government. The 17 unit of local government shall be responsible for timely 18 collection and transmission of dependent premiums. 19 The Director shall annually determine monthly rates of 20 payment, subject to the following constraints: 21 (1) In the first year of coverage, the rates shall 22 be equal to the amount normally charged to State 23 employees for elected optional coverages or for enrolled 24 dependents coverages or other contributory coverages, or 25 contributed by the State for basic insurance coverages on 26 behalf of its employees, adjusted for differences between 27 State employees and employees of the local government in 28 age, sex, geographic location or other relevant 29 demographic variables, plus an amount sufficient to pay 30 for the additional administrative costs of providing 31 coverage to employees of the unit of local government and 32 their dependents. 33 (2) In subsequent years, a further adjustment shall 34 be made to reflect the actual prior years' claims -22- LRB093 08477 JLS 14298 a 1 experience of the employees of the unit of local 2 government. 3 In the case of coverage of local government employees 4 under a health maintenance organization, the Director shall 5 annually determine for each participating unit of local 6 government the maximum monthly amount the unit may contribute 7 toward that coverage, based on an analysis of (i) the age, 8 sex, geographic location, and other relevant demographic 9 variables of the unit's employees and (ii) the cost to cover 10 those employees under the State group health benefits plan. 11 The Director may similarly determine the maximum monthly 12 amount each unit of local government may contribute toward 13 coverage of its employees' dependents under a health 14 maintenance organization. 15 Monthly payments by the unit of local government or its 16 employees for group health benefits plan or health 17 maintenance organization coverage shall be deposited in the 18 Local Government Health Insurance Reserve Fund. 19 The Local Government Health Insurance Reserve Fund shall 20 be a continuing fund not subject to fiscal year limitations. 21 All expenditures from this Fund shall be used for payments 22 for health care benefits for local government, domestic 23 violence shelter or service, and rehabilitation facility 24 employees, annuitants, and dependents, and to reimburse the 25 Department or its administrative service organization for all 26 expenses incurred in the administration of benefits. No 27 other State funds may be used for these purposes. 28 A local government employer's participation or desire to 29 participate in a program created under this subsection shall 30 not limit that employer's duty to bargain with the 31 representative of any collective bargaining unit of its 32 employees. 33 (j) Any rehabilitation facility within the State of 34 Illinois may apply to the Director to have its employees, -23- LRB093 08477 JLS 14298 a 1 annuitants, and their eligible dependents provided group 2 health coverage under this Act on a non-insured basis. To 3 participate, a rehabilitation facility must agree to enroll 4 all of its employees and remit the entire cost of providing 5 such coverage for its employees, except that the 6 rehabilitation facility shall not be required to enroll those 7 of its employees who are covered spouses or dependents under 8 this plan or another group policy or plan providing health 9 benefits as long as (1) an appropriate official from the 10 rehabilitation facility attests that each employee not 11 enrolled is a covered spouse or dependent under this plan or 12 another group policy or plan, and (2) at least 85% of the 13 employees are enrolled and the rehabilitation facility remits 14 the entire cost of providing coverage to those employees. 15 Employees of a participating rehabilitation facility who are 16 not enrolled due to coverage under another group health 17 policy or plan may enroll in the event of a qualifying change 18 in status, special enrollment, special circumstance as 19 defined by the Director, or during the annual Benefit Choice 20 Period. A participating rehabilitation facility may also 21 elect to cover its annuitants. Dependent coverage shall be 22 offered on an optional basis, with the costs paid by the 23 rehabilitation facility, its employees, or some combination 24 of the 2 as determined by the rehabilitation facility. The 25 rehabilitation facility shall be responsible for timely 26 collection and transmission of dependent premiums. 27 The Director shall annually determine quarterly rates of 28 payment, subject to the following constraints: 29 (1) In the first year of coverage, the rates shall 30 be equal to the amount normally charged to State 31 employees for elected optional coverages or for enrolled 32 dependents coverages or other contributory coverages on 33 behalf of its employees, adjusted for differences between 34 State employees and employees of the rehabilitation -24- LRB093 08477 JLS 14298 a 1 facility in age, sex, geographic location or other 2 relevant demographic variables, plus an amount sufficient 3 to pay for the additional administrative costs of 4 providing coverage to employees of the rehabilitation 5 facility and their dependents. 6 (2) In subsequent years, a further adjustment shall 7 be made to reflect the actual prior years' claims 8 experience of the employees of the rehabilitation 9 facility. 10 Monthly payments by the rehabilitation facility or its 11 employees for group health benefits shall be deposited in the 12 Local Government Health Insurance Reserve Fund. 13 (k) Any domestic violence shelter or service within the 14 State of Illinois may apply to the Director to have its 15 employees, annuitants, and their dependents provided group 16 health coverage under this Act on a non-insured basis. To 17 participate, a domestic violence shelter or service must 18 agree to enroll all of its employees and pay the entire cost 19 of providing such coverage for its employees. A 20 participating domestic violence shelter may also elect to 21 cover its annuitants. Dependent coverage shall be offered on 22 an optional basis, with the costs paid by the domestic 23 violence shelter or service, its employees, or some 24 combination of the 2 as determined by the domestic violence 25 shelter or service. The domestic violence shelter or service 26 shall be responsible for timely collection and transmission 27 of dependent premiums. 28 The Director shall annually determine rates of payment, 29 subject to the following constraints: 30 (1) In the first year of coverage, the rates shall 31 be equal to the amount normally charged to State 32 employees for elected optional coverages or for enrolled 33 dependents coverages or other contributory coverages on 34 behalf of its employees, adjusted for differences between -25- LRB093 08477 JLS 14298 a 1 State employees and employees of the domestic violence 2 shelter or service in age, sex, geographic location or 3 other relevant demographic variables, plus an amount 4 sufficient to pay for the additional administrative costs 5 of providing coverage to employees of the domestic 6 violence shelter or service and their dependents. 7 (2) In subsequent years, a further adjustment shall 8 be made to reflect the actual prior years' claims 9 experience of the employees of the domestic violence 10 shelter or service. 11 Monthly payments by the domestic violence shelter or 12 service or its employees for group health insurance shall be 13 deposited in the Local Government Health Insurance Reserve 14 Fund. 15 (k-5) Any qualified small business within the State of 16 Illinois may apply to the Director to have its employees, 17 annuitants, and their dependents provided group health 18 coverage under this Act on a non-insured basis. The 19 Department may set a limit on the number of qualified small 20 businesses that may receive group health coverage under this 21 subsection (k-5). In order to control its costs, the 22 Department may designate which plans it will offer to 23 qualified small businesses under this subsection (k-5). Those 24 plans may include, but need not be limited to, minimum, 25 limited, or comprehensive coverage plans; Health Maintenance 26 Organization and Preferred Provider Organization plans; and 27 medical savings plans. The plans may include the utilization 28 of insurance producers in the marketing of coverage under the 29 plans. In offering plans under this subsection (k-5) the 30 Department shall be subject to ratings and minimum coverage 31 in the same manner as a private insurer. Any plan offered 32 under this subsection (k-5) may provide for employee 33 contributions to the cost of the plan. A qualified small 34 business may select one or more of the plans offered by the -26- LRB093 08477 JLS 14298 a 1 Department to offer to its employees. To participate, a 2 qualified small business must agree to offer to enroll all of 3 its employees and remit the entire cost of providing such 4 coverage for its employees, except that the qualified small 5 business shall not be required to enroll those of its 6 employees who waive coverage under this subsection (k-5) 7 because they are covered spouses or dependents under another 8 group policy or plan providing health benefits as long as (1) 9 an appropriate official from the qualified small business 10 attests that each employee not enrolled is a covered spouse 11 or dependent under another group policy or plan and (2) at 12 least 75% of the remaining employees are enrolled. A 13 participating qualified small business may also elect to 14 cover its annuitants. Dependent coverage shall be offered on 15 an optional basis, with the costs paid by the small business, 16 its employees, or some combination of the 2 as determined by 17 the qualified small business. The qualified small business 18 shall be responsible for timely collection and transmission 19 of all premiums. 20 The Director shall annually determine rates of payment 21 taking into consideration, among other things, the following: 22 (1) In the first year of coverage, the rates shall 23 be equal to the amount normally charged to State 24 employees for elected optional coverages or for enrolled 25 dependents coverages or other contributory coverages on 26 behalf of its employees, adjusted for differences between 27 State employees and employees of the qualified small 28 business in age, sex, geographic location or other 29 relevant demographic variables, plus an amount sufficient 30 to pay for the additional administrative costs of 31 providing coverage to employees of the qualified small 32 business and their dependents. 33 (2) In subsequent years, a further adjustment shall 34 be made to reflect the actual prior years' claims -27- LRB093 08477 JLS 14298 a 1 experience of the employees of the qualified small 2 business. 3 Monthly payments by the qualified small business for 4 group health insurance shall be deposited into the Small 5 Employers Health Insurance Reserve Fund. The Small Employers 6 Health Insurance Reserve Fund shall be a continuing fund not 7 subject to fiscal year limitations. All expenditures from 8 this fund shall be used for payments for health care benefits 9 for employees of qualified small businesses and their 10 annuitants and dependents and to reimburse the Department or 11 its administrative service organization for all expenses 12 incurred in the administration of benefits. No State funds, 13 other than those specifically appropriated, may be used for 14 these purposes. 15 (l) A public community college or entity organized 16 pursuant to the Public Community College Act may apply to the 17 Director initially to have only annuitants not covered prior 18 to July 1, 1992 by the district's health plan provided health 19 coverage under this Act on a non-insured basis. The 20 community college must execute a 2-year contract to 21 participate in the Local Government Health Plan. Any 22 annuitant may enroll in the event of a qualifying change in 23 status, special enrollment, special circumstance as defined 24 by the Director, or during the annual Benefit Choice Period. 25 The Director shall annually determine monthly rates of 26 payment subject to the following constraints: for those 27 community colleges with annuitants only enrolled, first year 28 rates shall be equal to the average cost to cover claims for 29 a State member adjusted for demographics, Medicare 30 participation, and other factors; and in the second year, a 31 further adjustment of rates shall be made to reflect the 32 actual first year's claims experience of the covered 33 annuitants. 34 (l-5) The provisions of subsection (l) become -28- LRB093 08477 JLS 14298 a 1 inoperative on July 1, 1999. 2 (m) The Director shall adopt any rules deemed necessary 3 for implementation of this amendatory Act of 1989 (Public Act 4 86-978). 5 (Source: P.A. 91-280, eff. 7-23-99; 91-311; eff. 7-29-99; 6 91-357, eff. 7-29-99; 91-390, eff. 7-30-99; 91-395, eff. 7 7-30-99; 91-617, eff. 8-19-99; 92-16, eff. 6-28-01; revised 8 2-25-02.) 9 (5 ILCS 375/13.2) (from Ch. 127, par. 533.2) 10 Sec. 13.2. Insurance reserve funds; investments. All 11 amounts held in the Health Insurance Reserve Fund, the Group 12 Insurance Premium Fund, the Small Employers Health Insurance 13 Reserve Fund, and the Local Government Health Insurance 14 Reserve Fund shall be invested, at interest, by the State 15 Treasurer. The investments shall be subject to terms, 16 conditions, and limitations imposed by the laws of Illinois 17 on State funds. All income derived from the investments 18 shall accrue and be deposited to the respective funds no less 19 frequently than quarterly. The Health Insurance Reserve 20 Fund, the Small Employers Health Insurance Reserve Fund, and 21 the Local Government Health Insurance Reserve Fund shall be 22 administered by the Director. 23 (Source: P.A. 91-390, eff. 7-30-99.) 24 (5 ILCS 375/15) (from Ch. 127, par. 535) 25 Sec. 15. Administration; rules; audit; review. 26 (a) The Director shall administer this Act and shall 27 prescribe such rules and regulations as are necessary to give 28 full effect to the purposes of this Act. 29 (b) These rules may fix reasonable standards for the 30 group life and group health programs and other benefit 31 programs offered under this Act, and for the contractors 32 providing them. -29- LRB093 08477 JLS 14298 a 1 (c) These rules shall specify that covered and optional 2 medical services of the program are services provided within 3 the scope of their licenses by practitioners in all 4 categories licensed under the Medical Practice Act of 1987 5 and shall provide that all eligible persons be fully informed 6 of this specification. 7 (d) These rules shall establish eligibility requirements 8 for members and dependents as may be necessary to supplement 9 or clarify requirements contained in this Act. 10 (e) Each affected department of the State, the State 11 Universities Retirement System, the Teachers' Retirement 12 System, and each qualified local government, rehabilitation 13 facility,ordomestic violence shelter or service, or small 14 business shall keep such records, make such certifications, 15 and furnish the Director such information as may be necessary 16 for the administration of this Act, including information 17 concerning number and total amounts of payroll of employees 18 of the department who are paid from trust funds or federal 19 funds. 20 (f) Each member, each community college benefit 21 recipient to whom this Act applies, and each TRS benefit 22 recipient to whom this Act applies shall furnish the 23 Director, in such form as may be required, any information 24 that may be necessary to enroll such member or benefit 25 recipient and, if applicable, his or her dependents or 26 dependent beneficiaries under the programs or plan, including 27 such data as may be required to allow the Director to 28 accumulate statistics on data normally considered in 29 actuarial studies of employee groups. Information about 30 community college benefit recipients and community college 31 dependent beneficiaries shall be furnished through the State 32 Universities Retirement System. Information about TRS 33 benefit recipients and TRS dependent beneficiaries shall be 34 furnished through the Teachers' Retirement System. -30- LRB093 08477 JLS 14298 a 1 (g) There shall be audits and reports on the programs 2 authorized and established by this Act prepared by the 3 Director with the assistance of a qualified, independent 4 accounting firm. The reports shall provide information on 5 the experience, and administrative effectiveness and adequacy 6 of the program including, when applicable, recommendations on 7 up-grading of benefits and improvement of the program. 8 (h) Any final order, decision or other determination 9 made, issued or executed by the Director under the provisions 10 of this Act whereby any contractor or person is aggrieved 11 shall be subject to review in accordance with the provisions 12 of the Administrative Review Law and all amendments and 13 modifications thereof, and the rules adopted pursuant 14 thereto, shall apply to and govern all proceedings for the 15 judicial review of final administrative decisions of the 16 Director. 17 (Source: P.A. 90-497, eff. 8-18-97; 91-390, eff. 7-30-99.) 18 Section 10. The State Finance Act is amended by changing 19 Section 25 as follows: 20 (30 ILCS 105/25) (from Ch. 127, par. 161) 21 Sec. 25. Fiscal year limitations. 22 (a) All appropriations shall be available for 23 expenditure for the fiscal year or for a lesser period if the 24 Act making that appropriation so specifies. A deficiency or 25 emergency appropriation shall be available for expenditure 26 only through June 30 of the year when the Act making that 27 appropriation is enacted unless that Act otherwise provides. 28 (b) Outstanding liabilities as of June 30, payable from 29 appropriations which have otherwise expired, may be paid out 30 of the expiring appropriations during the 2-month period 31 ending at the close of business on August 31. Any service 32 involving professional or artistic skills or any personal -31- LRB093 08477 JLS 14298 a 1 services by an employee whose compensation is subject to 2 income tax withholding must be performed as of June 30 of the 3 fiscal year in order to be considered an "outstanding 4 liability as of June 30" that is thereby eligible for payment 5 out of the expiring appropriation. 6 However, payment of tuition reimbursement claims under 7 Section 14-7.03 or 18-3 of the School Code may be made by the 8 State Board of Education from its appropriations for those 9 respective purposes for any fiscal year, even though the 10 claims reimbursed by the payment may be claims attributable 11 to a prior fiscal year, and payments may be made at the 12 direction of the State Superintendent of Education from the 13 fund from which the appropriation is made without regard to 14 any fiscal year limitations. 15 Medical payments may be made by the Department of 16 Veterans' Affairs from its appropriations for those purposes 17 for any fiscal year, without regard to the fact that the 18 medical services being compensated for by such payment may 19 have been rendered in a prior fiscal year. 20 Medical payments may be made by the Department of Public 21 Aid and child care payments may be made by the Department of 22 Human Services (as successor to the Department of Public Aid) 23 from appropriations for those purposes for any fiscal year, 24 without regard to the fact that the medical or child care 25 services being compensated for by such payment may have been 26 rendered in a prior fiscal year; and payments may be made at 27 the direction of the Department of Central Management 28 Services from the Health Insurance Reserve Fund, the Small 29 Employers Health Insurance Reserve Fund, and the Local 30 Government Health Insurance Reserve Fund without regard to 31 any fiscal year limitations. 32 Additionally, payments may be made by the Department of 33 Human Services from its appropriations, or any other State 34 agency from its appropriations with the approval of the -32- LRB093 08477 JLS 14298 a 1 Department of Human Services, from the Immigration Reform and 2 Control Fund for purposes authorized pursuant to the 3 Immigration Reform and Control Act of 1986, without regard to 4 any fiscal year limitations. 5 Further, with respect to costs incurred in fiscal years 6 2002 and 2003 only, payments may be made by the State 7 Treasurer from its appropriations from the Capital Litigation 8 Trust Fund without regard to any fiscal year limitations. 9 (c) Further, payments may be made by the Department of 10 Public Health and the Department of Human Services (acting as 11 successor to the Department of Public Health under the 12 Department of Human Services Act) from their respective 13 appropriations for grants for medical care to or on behalf of 14 persons suffering from chronic renal disease, persons 15 suffering from hemophilia, rape victims, and premature and 16 high-mortality risk infants and their mothers and for grants 17 for supplemental food supplies provided under the United 18 States Department of Agriculture Women, Infants and Children 19 Nutrition Program, for any fiscal year without regard to the 20 fact that the services being compensated for by such payment 21 may have been rendered in a prior fiscal year. 22 (d) The Department of Public Health and the Department 23 of Human Services (acting as successor to the Department of 24 Public Health under the Department of Human Services Act) 25 shall each annually submit to the State Comptroller, Senate 26 President, Senate Minority Leader, Speaker of the House, 27 House Minority Leader, and the respective Chairmen and 28 Minority Spokesmen of the Appropriations Committees of the 29 Senate and the House, on or before December 31, a report of 30 fiscal year funds used to pay for services provided in any 31 prior fiscal year. This report shall document by program or 32 service category those expenditures from the most recently 33 completed fiscal year used to pay for services provided in 34 prior fiscal years. -33- LRB093 08477 JLS 14298 a 1 (e) The Department of Public Aid and the Department of 2 Human Services (acting as successor to the Department of 3 Public Aid) shall each annually submit to the State 4 Comptroller, Senate President, Senate Minority Leader, 5 Speaker of the House, House Minority Leader, the respective 6 Chairmen and Minority Spokesmen of the Appropriations 7 Committees of the Senate and the House, on or before November 8 30, a report that shall document by program or service 9 category those expenditures from the most recently completed 10 fiscal year used to pay for (i) services provided in prior 11 fiscal years and (ii) services for which claims were received 12 in prior fiscal years. 13 (f) The Department of Human Services (as successor to 14 the Department of Public Aid) shall annually submit to the 15 State Comptroller, Senate President, Senate Minority Leader, 16 Speaker of the House, House Minority Leader, and the 17 respective Chairmen and Minority Spokesmen of the 18 Appropriations Committees of the Senate and the House, on or 19 before December 31, a report of fiscal year funds used to pay 20 for services (other than medical care) provided in any prior 21 fiscal year. This report shall document by program or 22 service category those expenditures from the most recently 23 completed fiscal year used to pay for services provided in 24 prior fiscal years. 25 (g) In addition, each annual report required to be 26 submitted by the Department of Public Aid under subsection 27 (e) shall include the following information with respect to 28 the State's Medicaid program: 29 (1) Explanations of the exact causes of the 30 variance between the previous year's estimated and actual 31 liabilities. 32 (2) Factors affecting the Department of Public 33 Aid's liabilities, including but not limited to numbers 34 of aid recipients, levels of medical service utilization -34- LRB093 08477 JLS 14298 a 1 by aid recipients, and inflation in the cost of medical 2 services. 3 (3) The results of the Department's efforts to 4 combat fraud and abuse. 5 (h) As provided in Section 4 of the General Assembly 6 Compensation Act, any utility bill for service provided to a 7 General Assembly member's district office for a period 8 including portions of 2 consecutive fiscal years may be paid 9 from funds appropriated for such expenditure in either fiscal 10 year. 11 (i) An agency which administers a fund classified by the 12 Comptroller as an internal service fund may issue rules for: 13 (1) billing user agencies in advance based on 14 estimated charges for goods or services; 15 (2) issuing credits during the subsequent fiscal 16 year for all user agency payments received during the 17 prior fiscal year which were in excess of the final 18 amounts owed by the user agency for that period; and 19 (3) issuing catch-up billings to user agencies 20 during the subsequent fiscal year for amounts remaining 21 due when payments received from the user agency during 22 the prior fiscal year were less than the total amount 23 owed for that period. 24 User agencies are authorized to reimburse internal service 25 funds for catch-up billings by vouchers drawn against their 26 respective appropriations for the fiscal year in which the 27 catch-up billing was issued. 28 (Source: P.A. 92-885, eff. 1-13-03.) 29 Section 99. Effective date. This Act takes effect on 30 January 1, 2004.".