093_HB3561 LRB093 03466 LRD 11086 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 (i) owners and 22 employees of qualified small businesses and their dependents 23 and (ii) self-employed persons and their dependents. 24 (Source: P.A. 89-25, eff. 6-21-95; 90-497, eff. 8-18-97.) 25 (5 ILCS 375/3) (from Ch. 127, par. 523) 26 Sec. 3. Definitions. Unless the context otherwise 27 requires, the following words and phrases as used in this Act 28 shall have the following meanings. The Department may define 29 these and other words and phrases separately for the purpose 30 of implementing specific programs providing benefits under -2- LRB093 03466 LRD 11086 b 1 this Act. 2 (a) "Administrative service organization" means any 3 person, firm or corporation experienced in the handling of 4 claims which is fully qualified, financially sound and 5 capable of meeting the service requirements of a contract of 6 administration executed with the Department. 7 (b) "Annuitant" means (1) an employee who retires, or 8 has retired, on or after January 1, 1966 on an immediate 9 annuity under the provisions of Articles 2, 14, 15 (including 10 an employee who has retired under the optional retirement 11 program established under Section 15-158.2), paragraphs (2), 12 (3), or (5) of Section 16-106, or Article 18 of the Illinois 13 Pension Code; (2) any person who was receiving group 14 insurance coverage under this Act as of March 31, 1978 by 15 reason of his status as an annuitant, even though the annuity 16 in relation to which such coverage was provided is a 17 proportional annuity based on less than the minimum period of 18 service required for a retirement annuity in the system 19 involved; (3) any person not otherwise covered by this Act 20 who has retired as a participating member under Article 2 of 21 the Illinois Pension Code but is ineligible for the 22 retirement annuity under Section 2-119 of the Illinois 23 Pension Code; (4) the spouse of any person who is receiving a 24 retirement annuity under Article 18 of the Illinois Pension 25 Code and who is covered under a group health insurance 26 program sponsored by a governmental employer other than the 27 State of Illinois and who has irrevocably elected to waive 28 his or her coverage under this Act and to have his or her 29 spouse considered as the "annuitant" under this Act and not 30 as a "dependent";or(5) an employee who retires, or has 31 retired, from a qualified position, as determined according 32 to rules promulgated by the Director, under a qualified local 33 government or a qualified rehabilitation facility or a 34 qualified domestic violence shelter or service; or (6) an -3- LRB093 03466 LRD 11086 b 1 owner or employee who retires, or has retired, from a 2 qualified position, as determined according to rules 3 promulgated by the Director, with a qualified small business 4 or as a self-employed person. (For definition of "retired 5 employee", see (p) post). 6 (b-5) "New SERS annuitant" means a person who, on or 7 after January 1, 1998, becomes an annuitant, as defined in 8 subsection (b), by virtue of beginning to receive a 9 retirement annuity under Article 14 of the Illinois Pension 10 Code, and is eligible to participate in the basic program of 11 group health benefits provided for annuitants under this Act. 12 (b-6) "New SURS annuitant" means a person who (1) on or 13 after January 1, 1998, becomes an annuitant, as defined in 14 subsection (b), by virtue of beginning to receive a 15 retirement annuity under Article 15 of the Illinois Pension 16 Code, (2) has not made the election authorized under Section 17 15-135.1 of the Illinois Pension Code, and (3) is eligible to 18 participate in the basic program of group health benefits 19 provided for annuitants under this Act. 20 (b-7) "New TRS State annuitant" means a person who, on 21 or after July 1, 1998, becomes an annuitant, as defined in 22 subsection (b), by virtue of beginning to receive a 23 retirement annuity under Article 16 of the Illinois Pension 24 Code based on service as a teacher as defined in paragraph 25 (2), (3), or (5) of Section 16-106 of that Code, and is 26 eligible to participate in the basic program of group health 27 benefits provided for annuitants under this Act. 28 (c) "Carrier" means (1) an insurance company, a 29 corporation organized under the Limited Health Service 30 Organization Act or the Voluntary Health Services Plan Act, a 31 partnership, or other nongovernmental organization, which is 32 authorized to do group life or group health insurance 33 business in Illinois, or (2) the State of Illinois as a 34 self-insurer. -4- LRB093 03466 LRD 11086 b 1 (d) "Compensation" means salary or wages payable on a 2 regular payroll by the State Treasurer on a warrant of the 3 State Comptroller out of any State, trust or federal fund, or 4 by the Governor of the State through a disbursing officer of 5 the State out of a trust or out of federal funds, or by any 6 Department out of State, trust, federal or other funds held 7 by the State Treasurer or the Department, to any person for 8 personal services currently performed, and ordinary or 9 accidental disability benefits under Articles 2, 14, 15 10 (including ordinary or accidental disability benefits under 11 the optional retirement program established under Section 12 15-158.2), paragraphs (2), (3), or (5) of Section 16-106, or 13 Article 18 of the Illinois Pension Code, for disability 14 incurred after January 1, 1966, or benefits payable under the 15 Workers' Compensation or Occupational Diseases Act or 16 benefits payable under a sick pay plan established in 17 accordance with Section 36 of the State Finance Act. 18 "Compensation" also means salary or wages paid to an employee 19 of any qualified local government or qualified rehabilitation 20 facility or a qualified domestic violence shelter or service. 21 "Compensation" also means salary or wages paid to an employee 22 or owner of a qualified small business and earned income 23 earned by a self-employed person. 24 (e) "Commission" means the State Employees Group 25 Insurance Advisory Commission authorized by this Act. 26 Commencing July 1, 1984, "Commission" as used in this Act 27 means the Illinois Economic and Fiscal Commission as 28 established by the Legislative Commission Reorganization Act 29 of 1984. 30 (f) "Contributory", when referred to as contributory 31 coverage, shall mean optional coverages or benefits elected 32 by the member toward the cost of which such member makes 33 contribution, or which are funded in whole or in part through 34 the acceptance of a reduction in earnings or the foregoing of -5- LRB093 03466 LRD 11086 b 1 an increase in earnings by an employee, as distinguished from 2 noncontributory coverage or benefits which are paid entirely 3 by the State of Illinois without reduction of the member's 4 salary. 5 (g) "Department" means any department, institution, 6 board, commission, officer, court or any agency of the State 7 government receiving appropriations and having power to 8 certify payrolls to the Comptroller authorizing payments of 9 salary and wages against such appropriations as are made by 10 the General Assembly from any State fund, or against trust 11 funds held by the State Treasurer and includes boards of 12 trustees of the retirement systems created by Articles 2, 14, 13 15, 16 and 18 of the Illinois Pension Code. "Department" 14 also includes the Illinois Comprehensive Health Insurance 15 Board, the Board of Examiners established under the Illinois 16 Public Accounting Act, and the Illinois Rural Bond Bank. 17 (h) "Dependent", when the term is used in the context of 18 the health and life plan, means a member's spouse and any 19 unmarried child (1) from birth to age 19 including an adopted 20 child, a child who lives with the member from the time of the 21 filing of a petition for adoption until entry of an order of 22 adoption, a stepchild or recognized child who lives with the 23 member in a parent-child relationship, or a child who lives 24 with the member if such member is a court appointed guardian 25 of the child, or (2) age 19 to 23 enrolled as a full-time 26 student in any accredited school, financially dependent upon 27 the member, and eligible to be claimed as a dependent for 28 income tax purposes, or (3) age 19 or over who is mentally or 29 physically handicapped. For the health plan only, the term 30 "dependent" also includes any person enrolled prior to the 31 effective date of this Section who is dependent upon the 32 member to the extent that the member may claim such person as 33 a dependent for income tax deduction purposes; no other such 34 person may be enrolled. For the health plan only, the term -6- LRB093 03466 LRD 11086 b 1 "dependent" also includes any person who has received after 2 June 30, 2000 an organ transplant and who is financially 3 dependent upon the member and eligible to be claimed as a 4 dependent for income tax purposes. 5 (i) "Director" means the Director of the Illinois 6 Department of Central Management Services. 7 (j) "Eligibility period" means the period of time a 8 member has to elect enrollment in programs or to select 9 benefits without regard to age, sex or health. 10 (k) "Employee" means and includes each officer or 11 employee in the service of a department who (1) receives his 12 compensation for service rendered to the department on a 13 warrant issued pursuant to a payroll certified by a 14 department or on a warrant or check issued and drawn by a 15 department upon a trust, federal or other fund or on a 16 warrant issued pursuant to a payroll certified by an elected 17 or duly appointed officer of the State or who receives 18 payment of the performance of personal services on a warrant 19 issued pursuant to a payroll certified by a Department and 20 drawn by the Comptroller upon the State Treasurer against 21 appropriations made by the General Assembly from any fund or 22 against trust funds held by the State Treasurer, and (2) is 23 employed full-time or part-time in a position normally 24 requiring actual performance of duty during not less than 1/2 25 of a normal work period, as established by the Director in 26 cooperation with each department, except that persons elected 27 by popular vote will be considered employees during the 28 entire term for which they are elected regardless of hours 29 devoted to the service of the State, and (3) except that 30 "employee" does not include any person who is not eligible by 31 reason of such person's employment to participate in one of 32 the State retirement systems under Articles 2, 14, 15 (either 33 the regular Article 15 system or the optional retirement 34 program established under Section 15-158.2) or 18, or under -7- LRB093 03466 LRD 11086 b 1 paragraph (2), (3), or (5) of Section 16-106, of the Illinois 2 Pension Code, but such term does include persons who are 3 employed during the 6 month qualifying period under Article 4 14 of the Illinois Pension Code. Such term also includes any 5 person who (1) after January 1, 1966, is receiving ordinary 6 or accidental disability benefits under Articles 2, 14, 15 7 (including ordinary or accidental disability benefits under 8 the optional retirement program established under Section 9 15-158.2), paragraphs (2), (3), or (5) of Section 16-106, or 10 Article 18 of the Illinois Pension Code, for disability 11 incurred after January 1, 1966, (2) receives total permanent 12 or total temporary disability under the Workers' Compensation 13 Act or Occupational Disease Act as a result of injuries 14 sustained or illness contracted in the course of employment 15 with the State of Illinois, or (3) is not otherwise covered 16 under this Act and has retired as a participating member 17 under Article 2 of the Illinois Pension Code but is 18 ineligible for the retirement annuity under Section 2-119 of 19 the Illinois Pension Code. However, a person who satisfies 20 the criteria of the foregoing definition of "employee" except 21 that such person is made ineligible to participate in the 22 State Universities Retirement System by clause (4) of 23 subsection (a) of Section 15-107 of the Illinois Pension Code 24 is also an "employee" for the purposes of this Act. 25 "Employee" also includes any person receiving or eligible for 26 benefits under a sick pay plan established in accordance with 27 Section 36 of the State Finance Act. "Employee" also includes 28 each officer or employee in the service of a qualified local 29 government, including persons appointed as trustees of 30 sanitary districts regardless of hours devoted to the service 31 of the sanitary district, and each employee in the service of 32 a qualified rehabilitation facility and each full-time 33 employee in the service of a qualified domestic violence 34 shelter or service, as determined according to rules -8- LRB093 03466 LRD 11086 b 1 promulgated by the Director. "Employee" also includes an 2 owner and a full-time employee in the service of a qualified 3 small business and a self-employed person, as determined 4 according to rules promulgated by the Director. 5 (l) "Member" means an employee, annuitant, retired 6 employee or survivor. 7 (m) "Optional coverages or benefits" means those 8 coverages or benefits available to the member on his or her 9 voluntary election, and at his or her own expense. 10 (n) "Program" means the group life insurance, health 11 benefits and other employee benefits designed and contracted 12 for by the Director under this Act. 13 (o) "Health plan" means a health benefits program 14 offered by the State of Illinois for persons eligible for the 15 plan. 16 (p) "Retired employee" means any person who would be an 17 annuitant as that term is defined herein but for the fact 18 that such person retired prior to January 1, 1966. Such term 19 also includes any person formerly employed by the University 20 of Illinois in the Cooperative Extension Service who would be 21 an annuitant but for the fact that such person was made 22 ineligible to participate in the State Universities 23 Retirement System by clause (4) of subsection (a) of Section 24 15-107 of the Illinois Pension Code. 25 (q) "Survivor" means a person receiving an annuity as a 26 survivor of an employee or of an annuitant. "Survivor" also 27 includes: (1) the surviving dependent of a person who 28 satisfies the definition of "employee" except that such 29 person is made ineligible to participate in the State 30 Universities Retirement System by clause (4) of subsection 31 (a) of Section 15-107 of the Illinois Pension Code; and (2) 32 the surviving dependent of any person formerly employed by 33 the University of Illinois in the Cooperative Extension 34 Service who would be an annuitant except for the fact that -9- LRB093 03466 LRD 11086 b 1 such person was made ineligible to participate in the State 2 Universities Retirement System by clause (4) of subsection 3 (a) of Section 15-107 of the Illinois Pension Code. 4 (q-5) "New SERS survivor" means a survivor, as defined 5 in subsection (q), whose annuity is paid under Article 14 of 6 the Illinois Pension Code and is based on the death of (i) an 7 employee whose death occurs on or after January 1, 1998, or 8 (ii) a new SERS annuitant as defined in subsection (b-5). 9 (q-6) "New SURS survivor" means a survivor, as defined 10 in subsection (q), whose annuity is paid under Article 15 of 11 the Illinois Pension Code and is based on the death of (i) an 12 employee whose death occurs on or after January 1, 1998, or 13 (ii) a new SURS annuitant as defined in subsection (b-6). 14 (q-7) "New TRS State survivor" means a survivor, as 15 defined in subsection (q), whose annuity is paid under 16 Article 16 of the Illinois Pension Code and is based on the 17 death of (i) an employee who is a teacher as defined in 18 paragraph (2), (3), or (5) of Section 16-106 of that Code and 19 whose death occurs on or after July 1, 1998, or (ii) a new 20 TRS State annuitant as defined in subsection (b-7). 21 (r) "Medical services" means the services provided 22 within the scope of their licenses by practitioners in all 23 categories licensed under the Medical Practice Act of 1987. 24 (s) "Unit of local government" means any county, 25 municipality, township, school district (including a 26 combination of school districts under the Intergovernmental 27 Cooperation Act), special district or other unit, designated 28 as a unit of local government by law, which exercises limited 29 governmental powers or powers in respect to limited 30 governmental subjects, any not-for-profit association with a 31 membership that primarily includes townships and township 32 officials, that has duties that include provision of research 33 service, dissemination of information, and other acts for the 34 purpose of improving township government, and that is funded -10- LRB093 03466 LRD 11086 b 1 wholly or partly in accordance with Section 85-15 of the 2 Township Code; any not-for-profit corporation or association, 3 with a membership consisting primarily of municipalities, 4 that operates its own utility system, and provides research, 5 training, dissemination of information, or other acts to 6 promote cooperation between and among municipalities that 7 provide utility services and for the advancement of the goals 8 and purposes of its membership; the Southern Illinois 9 Collegiate Common Market, which is a consortium of higher 10 education institutions in Southern Illinois; and the Illinois 11 Association of Park Districts. "Qualified local government" 12 means a unit of local government approved by the Director and 13 participating in a program created under subsection (i) of 14 Section 10 of this Act. 15 (t) "Qualified rehabilitation facility" means any 16 not-for-profit organization that is accredited by the 17 Commission on Accreditation of Rehabilitation Facilities or 18 certified by the Department of Human Services (as successor 19 to the Department of Mental Health and Developmental 20 Disabilities) to provide services to persons with 21 disabilities and which receives funds from the State of 22 Illinois for providing those services, approved by the 23 Director and participating in a program created under 24 subsection (j) of Section 10 of this Act. 25 (u) "Qualified domestic violence shelter or service" 26 means any Illinois domestic violence shelter or service and 27 its administrative offices funded by the Department of Human 28 Services (as successor to the Illinois Department of Public 29 Aid), approved by the Director and participating in a program 30 created under subsection (k) of Section 10. 31 (v) "TRS benefit recipient" means a person who: 32 (1) is not a "member" as defined in this Section; 33 and 34 (2) is receiving a monthly benefit or retirement -11- LRB093 03466 LRD 11086 b 1 annuity under Article 16 of the Illinois Pension Code; 2 and 3 (3) either (i) has at least 8 years of creditable 4 service under Article 16 of the Illinois Pension Code, or 5 (ii) was enrolled in the health insurance program offered 6 under that Article on January 1, 1996, or (iii) is the 7 survivor of a benefit recipient who had at least 8 years 8 of creditable service under Article 16 of the Illinois 9 Pension Code or was enrolled in the health insurance 10 program offered under that Article on the effective date 11 of this amendatory Act of 1995, or (iv) is a recipient or 12 survivor of a recipient of a disability benefit under 13 Article 16 of the Illinois Pension Code. 14 (w) "TRS dependent beneficiary" means a person who: 15 (1) is not a "member" or "dependent" as defined in 16 this Section; and 17 (2) is a TRS benefit recipient's: (A) spouse, (B) 18 dependent parent who is receiving at least half of his or 19 her support from the TRS benefit recipient, or (C) 20 unmarried natural or adopted child who is (i) under age 21 19, or (ii) enrolled as a full-time student in an 22 accredited school, financially dependent upon the TRS 23 benefit recipient, eligible to be claimed as a dependent 24 for income tax purposes, and either is under age 24 or 25 was, on January 1, 1996, participating as a dependent 26 beneficiary in the health insurance program offered under 27 Article 16 of the Illinois Pension Code, or (iii) age 19 28 or over who is mentally or physically handicapped. 29 (x) "Military leave with pay and benefits" refers to 30 individuals in basic training for reserves, special/advanced 31 training, annual training, emergency call up, or activation 32 by the President of the United States with approved pay and 33 benefits. 34 (y) "Military leave without pay and benefits" refers to -12- LRB093 03466 LRD 11086 b 1 individuals who enlist for active duty in a regular component 2 of the U.S. Armed Forces or other duty not specified or 3 authorized under military leave with pay and benefits. 4 (z) "Community college benefit recipient" means a person 5 who: 6 (1) is not a "member" as defined in this Section; 7 and 8 (2) is receiving a monthly survivor's annuity or 9 retirement annuity under Article 15 of the Illinois 10 Pension Code; and 11 (3) either (i) was a full-time employee of a 12 community college district or an association of community 13 college boards created under the Public Community College 14 Act (other than an employee whose last employer under 15 Article 15 of the Illinois Pension Code was a community 16 college district subject to Article VII of the Public 17 Community College Act) and was eligible to participate in 18 a group health benefit plan as an employee during the 19 time of employment with a community college district 20 (other than a community college district subject to 21 Article VII of the Public Community College Act) or an 22 association of community college boards, or (ii) is the 23 survivor of a person described in item (i). 24 (aa) "Community college dependent beneficiary" means a 25 person who: 26 (1) is not a "member" or "dependent" as defined in 27 this Section; and 28 (2) is a community college benefit recipient's: (A) 29 spouse, (B) dependent parent who is receiving at least 30 half of his or her support from the community college 31 benefit recipient, or (C) unmarried natural or adopted 32 child who is (i) under age 19, or (ii) enrolled as a 33 full-time student in an accredited school, financially 34 dependent upon the community college benefit recipient, -13- LRB093 03466 LRD 11086 b 1 eligible to be claimed as a dependent for income tax 2 purposes and under age 23, or (iii) age 19 or over and 3 mentally or physically handicapped. 4 (bb) "Qualified small business" means a business 5 situated in Illinois having 25 or fewer employees, approved 6 by the Director and participating in a program created under 7 subsection (k-5) of Section 10. 8 (cc) "Self-employed person" means a person engaged in a 9 business enterprise or profession as a self-employed person 10 or who is conducting another self-employed occupation and is 11 participating in a program created under subsection (k-5) of 12 Section 10. 13 (Source: P.A. 91-390, eff. 7-30-99; 91-395, eff. 7-30-99; 14 91-617, eff. 8-19-99; 92-16, eff. 6-28-01; 92-186, eff. 15 1-1-02; 92-204, eff. 8-1-01; 92-651, eff. 7-11-02.) 16 (5 ILCS 375/10) (from Ch. 127, par. 530) 17 Sec. 10. Payments by State; premiums. 18 (a) The State shall pay the cost of basic 19 non-contributory group life insurance and, subject to member 20 paid contributions set by the Department or required by this 21 Section, the basic program of group health benefits on each 22 eligible member, except a member, not otherwise covered by 23 this Act, who has retired as a participating member under 24 Article 2 of the Illinois Pension Code but is ineligible for 25 the retirement annuity under Section 2-119 of the Illinois 26 Pension Code, and part of each eligible member's and retired 27 member's premiums for health insurance coverage for enrolled 28 dependents as provided by Section 9. The State shall pay the 29 cost of the basic program of group health benefits only after 30 benefits are reduced by the amount of benefits covered by 31 Medicare for all members and dependents who are eligible for 32 benefits under Social Security or the Railroad Retirement 33 system or who had sufficient Medicare-covered government -14- LRB093 03466 LRD 11086 b 1 employment, except that such reduction in benefits shall 2 apply only to those members and dependents who (1) first 3 become eligible for such Medicare coverage on or after July 4 1, 1992; or (2) are Medicare-eligible members or dependents 5 of a local government unit which began participation in the 6 program on or after July 1, 1992; or (3) remain eligible for, 7 but no longer receive Medicare coverage which they had been 8 receiving on or after July 1, 1992. The Department may 9 determine the aggregate level of the State's contribution on 10 the basis of actual cost of medical services adjusted for 11 age, sex or geographic or other demographic characteristics 12 which affect the costs of such programs. 13 The cost of participation in the basic program of group 14 health benefits for the dependent or survivor of a living or 15 deceased retired employee who was formerly employed by the 16 University of Illinois in the Cooperative Extension Service 17 and would be an annuitant but for the fact that he or she was 18 made ineligible to participate in the State Universities 19 Retirement System by clause (4) of subsection (a) of Section 20 15-107 of the Illinois Pension Code shall not be greater than 21 the cost of participation that would otherwise apply to that 22 dependent or survivor if he or she were the dependent or 23 survivor of an annuitant under the State Universities 24 Retirement System. 25 (a-1) Beginning January 1, 1998, for each person who 26 becomes a new SERS annuitant and participates in the basic 27 program of group health benefits, the State shall contribute 28 toward the cost of the annuitant's coverage under the basic 29 program of group health benefits an amount equal to 5% of 30 that cost for each full year of creditable service upon which 31 the annuitant's retirement annuity is based, up to a maximum 32 of 100% for an annuitant with 20 or more years of creditable 33 service. The remainder of the cost of a new SERS annuitant's 34 coverage under the basic program of group health benefits -15- LRB093 03466 LRD 11086 b 1 shall be the responsibility of the annuitant. 2 (a-2) Beginning January 1, 1998, for each person who 3 becomes a new SERS survivor and participates in the basic 4 program of group health benefits, the State shall contribute 5 toward the cost of the survivor's coverage under the basic 6 program of group health benefits an amount equal to 5% of 7 that cost for each full year of the deceased employee's or 8 deceased annuitant's creditable service in the State 9 Employees' Retirement System of Illinois on the date of 10 death, up to a maximum of 100% for a survivor of an employee 11 or annuitant with 20 or more years of creditable service. 12 The remainder of the cost of the new SERS survivor's coverage 13 under the basic program of group health benefits shall be the 14 responsibility of the survivor. 15 (a-3) Beginning January 1, 1998, for each person who 16 becomes a new SURS annuitant and participates in the basic 17 program of group health benefits, the State shall contribute 18 toward the cost of the annuitant's coverage under the basic 19 program of group health benefits an amount equal to 5% of 20 that cost for each full year of creditable service upon which 21 the annuitant's retirement annuity is based, up to a maximum 22 of 100% for an annuitant with 20 or more years of creditable 23 service. The remainder of the cost of a new SURS annuitant's 24 coverage under the basic program of group health benefits 25 shall be the responsibility of the annuitant. 26 (a-4) (Blank). 27 (a-5) Beginning January 1, 1998, for each person who 28 becomes a new SURS survivor and participates in the basic 29 program of group health benefits, the State shall contribute 30 toward the cost of the survivor's coverage under the basic 31 program of group health benefits an amount equal to 5% of 32 that cost for each full year of the deceased employee's or 33 deceased annuitant's creditable service in the State 34 Universities Retirement System on the date of death, up to a -16- LRB093 03466 LRD 11086 b 1 maximum of 100% for a survivor of an employee or annuitant 2 with 20 or more years of creditable service. The remainder 3 of the cost of the new SURS survivor's coverage under the 4 basic program of group health benefits shall be the 5 responsibility of the survivor. 6 (a-6) Beginning July 1, 1998, for each person who 7 becomes a new TRS State annuitant and participates in the 8 basic program of group health benefits, the State shall 9 contribute toward the cost of the annuitant's coverage under 10 the basic program of group health benefits an amount equal to 11 5% of that cost for each full year of creditable service as a 12 teacher as defined in paragraph (2), (3), or (5) of Section 13 16-106 of the Illinois Pension Code upon which the 14 annuitant's retirement annuity is based, up to a maximum of 15 100%; except that the State contribution shall be 12.5% per 16 year (rather than 5%) for each full year of creditable 17 service as a regional superintendent or assistant regional 18 superintendent of schools. The remainder of the cost of a 19 new TRS State annuitant's coverage under the basic program of 20 group health benefits shall be the responsibility of the 21 annuitant. 22 (a-7) Beginning July 1, 1998, for each person who 23 becomes a new TRS State survivor and participates in the 24 basic program of group health benefits, the State shall 25 contribute toward the cost of the survivor's coverage under 26 the basic program of group health benefits an amount equal to 27 5% of that cost for each full year of the deceased employee's 28 or deceased annuitant's creditable service as a teacher as 29 defined in paragraph (2), (3), or (5) of Section 16-106 of 30 the Illinois Pension Code on the date of death, up to a 31 maximum of 100%; except that the State contribution shall be 32 12.5% per year (rather than 5%) for each full year of the 33 deceased employee's or deceased annuitant's creditable 34 service as a regional superintendent or assistant regional -17- LRB093 03466 LRD 11086 b 1 superintendent of schools. The remainder of the cost of the 2 new TRS State survivor's coverage under the basic program of 3 group health benefits shall be the responsibility of the 4 survivor. 5 (a-8) A new SERS annuitant, new SERS survivor, new SURS 6 annuitant, new SURS survivor, new TRS State annuitant, or new 7 TRS State survivor may waive or terminate coverage in the 8 program of group health benefits. Any such annuitant or 9 survivor who has waived or terminated coverage may enroll or 10 re-enroll in the program of group health benefits only during 11 the annual benefit choice period, as determined by the 12 Director; except that in the event of termination of coverage 13 due to nonpayment of premiums, the annuitant or survivor may 14 not re-enroll in the program. 15 (a-9) No later than May 1 of each calendar year, the 16 Director of Central Management Services shall certify in 17 writing to the Executive Secretary of the State Employees' 18 Retirement System of Illinois the amounts of the Medicare 19 supplement health care premiums and the amounts of the health 20 care premiums for all other retirees who are not Medicare 21 eligible. 22 A separate calculation of the premiums based upon the 23 actual cost of each health care plan shall be so certified. 24 The Director of Central Management Services shall provide 25 to the Executive Secretary of the State Employees' Retirement 26 System of Illinois such information, statistics, and other 27 data as he or she may require to review the premium amounts 28 certified by the Director of Central Management Services. 29 (b) State employees who become eligible for this program 30 on or after January 1, 1980 in positions normally requiring 31 actual performance of duty not less than 1/2 of a normal work 32 period but not equal to that of a normal work period, shall 33 be given the option of participating in the available 34 program. If the employee elects coverage, the State shall -18- LRB093 03466 LRD 11086 b 1 contribute on behalf of such employee to the cost of the 2 employee's benefit and any applicable dependent supplement, 3 that sum which bears the same percentage as that percentage 4 of time the employee regularly works when compared to normal 5 work period. 6 (c) The basic non-contributory coverage from the basic 7 program of group health benefits shall be continued for each 8 employee not in pay status or on active service by reason of 9 (1) leave of absence due to illness or injury, (2) authorized 10 educational leave of absence or sabbatical leave, or (3) 11 military leave with pay and benefits. This coverage shall 12 continue until expiration of authorized leave and return to 13 active service, but not to exceed 24 months for leaves under 14 item (1) or (2). This 24-month limitation and the requirement 15 of returning to active service shall not apply to persons 16 receiving ordinary or accidental disability benefits or 17 retirement benefits through the appropriate State retirement 18 system or benefits under the Workers' Compensation or 19 Occupational Disease Act. 20 (d) The basic group life insurance coverage shall 21 continue, with full State contribution, where such person is 22 (1) absent from active service by reason of disability 23 arising from any cause other than self-inflicted, (2) on 24 authorized educational leave of absence or sabbatical leave, 25 or (3) on military leave with pay and benefits. 26 (e) Where the person is in non-pay status for a period 27 in excess of 30 days or on leave of absence, other than by 28 reason of disability, educational or sabbatical leave, or 29 military leave with pay and benefits, such person may 30 continue coverage only by making personal payment equal to 31 the amount normally contributed by the State on such person's 32 behalf. Such payments and coverage may be continued: (1) 33 until such time as the person returns to a status eligible 34 for coverage at State expense, but not to exceed 24 months, -19- LRB093 03466 LRD 11086 b 1 (2) until such person's employment or annuitant status with 2 the State is terminated, or (3) for a maximum period of 4 3 years for members on military leave with pay and benefits and 4 military leave without pay and benefits (exclusive of any 5 additional service imposed pursuant to law). 6 (f) The Department shall establish by rule the extent 7 to which other employee benefits will continue for persons in 8 non-pay status or who are not in active service. 9 (g) The State shall not pay the cost of the basic 10 non-contributory group life insurance, program of health 11 benefits and other employee benefits for members who are 12 survivors as defined by paragraphs (1) and (2) of subsection 13 (q) of Section 3 of this Act. The costs of benefits for 14 these survivors shall be paid by the survivors or by the 15 University of Illinois Cooperative Extension Service, or any 16 combination thereof. However, the State shall pay the amount 17 of the reduction in the cost of participation, if any, 18 resulting from the amendment to subsection (a) made by this 19 amendatory Act of the 91st General Assembly. 20 (h) Those persons occupying positions with any 21 department as a result of emergency appointments pursuant to 22 Section 8b.8 of the Personnel Code who are not considered 23 employees under this Act shall be given the option of 24 participating in the programs of group life insurance, health 25 benefits and other employee benefits. Such persons electing 26 coverage may participate only by making payment equal to the 27 amount normally contributed by the State for similarly 28 situated employees. Such amounts shall be determined by the 29 Director. Such payments and coverage may be continued until 30 such time as the person becomes an employee pursuant to this 31 Act or such person's appointment is terminated. 32 (i) Any unit of local government within the State of 33 Illinois may apply to the Director to have its employees, 34 annuitants, and their dependents provided group health -20- LRB093 03466 LRD 11086 b 1 coverage under this Act on a non-insured basis. To 2 participate, a unit of local government must agree to enroll 3 all of its employees, who may select coverage under either 4 the State group health benefits plan or a health maintenance 5 organization that has contracted with the State to be 6 available as a health care provider for employees as defined 7 in this Act. A unit of local government must remit the 8 entire cost of providing coverage under the State group 9 health benefits plan or, for coverage under a health 10 maintenance organization, an amount determined by the 11 Director based on an analysis of the sex, age, geographic 12 location, or other relevant demographic variables for its 13 employees, except that the unit of local government shall not 14 be required to enroll those of its employees who are covered 15 spouses or dependents under this plan or another group policy 16 or plan providing health benefits as long as (1) an 17 appropriate official from the unit of local government 18 attests that each employee not enrolled is a covered spouse 19 or dependent under this plan or another group policy or plan, 20 and (2) at least 85% of the employees are enrolled and the 21 unit of local government remits the entire cost of providing 22 coverage to those employees, except that a participating 23 school district must have enrolled at least 85% of its 24 full-time employees who have not waived coverage under the 25 district's group health plan by participating in a component 26 of the district's cafeteria plan. A participating school 27 district is not required to enroll a full-time employee who 28 has waived coverage under the district's health plan, 29 provided that an appropriate official from the participating 30 school district attests that the full-time employee has 31 waived coverage by participating in a component of the 32 district's cafeteria plan. For the purposes of this 33 subsection, "participating school district" includes a unit 34 of local government whose primary purpose is education as -21- LRB093 03466 LRD 11086 b 1 defined by the Department's rules. 2 Employees of a participating unit of local government who 3 are 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 unit of local government may also 8 elect to cover its annuitants. Dependent coverage shall be 9 offered on an optional basis, with the costs paid by the unit 10 of local government, its employees, or some combination of 11 the two as determined by the unit of local government. The 12 unit of local government shall be responsible for timely 13 collection and transmission of dependent premiums. 14 The Director shall annually determine monthly 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, or 20 contributed by the State for basic insurance coverages on 21 behalf of its employees, adjusted for differences between 22 State employees and employees of the local government in 23 age, sex, geographic location or other relevant 24 demographic variables, plus an amount sufficient to pay 25 for the additional administrative costs of providing 26 coverage to employees of the unit of local government and 27 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 unit of local 31 government. 32 In the case of coverage of local government employees 33 under a health maintenance organization, the Director shall 34 annually determine for each participating unit of local -22- LRB093 03466 LRD 11086 b 1 government the maximum monthly amount the unit may contribute 2 toward that coverage, based on an analysis of (i) the age, 3 sex, geographic location, and other relevant demographic 4 variables of the unit's employees and (ii) the cost to cover 5 those employees under the State group health benefits plan. 6 The Director may similarly determine the maximum monthly 7 amount each unit of local government may contribute toward 8 coverage of its employees' dependents under a health 9 maintenance organization. 10 Monthly payments by the unit of local government or its 11 employees for group health benefits plan or health 12 maintenance organization coverage shall be deposited in the 13 Local Government Health Insurance Reserve Fund. 14 The Local Government Health Insurance Reserve Fund shall 15 be a continuing fund not subject to fiscal year limitations. 16 All expenditures from this Fund shall be used for payments 17 for health care benefits for local government, domestic 18 violence shelter or service, and rehabilitation facility 19 employees, annuitants, and dependents, and to reimburse the 20 Department or its administrative service organization for all 21 expenses incurred in the administration of benefits. No 22 other State funds may be used for these purposes. 23 A local government employer's participation or desire to 24 participate in a program created under this subsection shall 25 not limit that employer's duty to bargain with the 26 representative of any collective bargaining unit of its 27 employees. 28 (j) Any rehabilitation facility within the State of 29 Illinois may apply to the Director to have its employees, 30 annuitants, and their eligible dependents provided group 31 health coverage under this Act on a non-insured basis. To 32 participate, a rehabilitation facility must agree to enroll 33 all of its employees and remit the entire cost of providing 34 such coverage for its employees, except that the -23- LRB093 03466 LRD 11086 b 1 rehabilitation facility shall not be required to enroll those 2 of its employees who are covered spouses or dependents under 3 this plan or another group policy or plan providing health 4 benefits as long as (1) an appropriate official from the 5 rehabilitation facility attests that each employee not 6 enrolled is a covered spouse or dependent under this plan or 7 another group policy or plan, and (2) at least 85% of the 8 employees are enrolled and the rehabilitation facility remits 9 the entire cost of providing coverage to those employees. 10 Employees of a participating rehabilitation facility who are 11 not enrolled due to coverage under another group health 12 policy or plan may enroll in the event of a qualifying change 13 in status, special enrollment, special circumstance as 14 defined by the Director, or during the annual Benefit Choice 15 Period. A participating rehabilitation facility may also 16 elect to cover its annuitants. Dependent coverage shall be 17 offered on an optional basis, with the costs paid by the 18 rehabilitation facility, its employees, or some combination 19 of the 2 as determined by the rehabilitation facility. The 20 rehabilitation facility shall be responsible for timely 21 collection and transmission of dependent premiums. 22 The Director shall annually determine quarterly rates of 23 payment, subject to the following constraints: 24 (1) In the first year of coverage, the rates shall 25 be equal to the amount normally charged to State 26 employees for elected optional coverages or for enrolled 27 dependents coverages or other contributory coverages on 28 behalf of its employees, adjusted for differences between 29 State employees and employees of the rehabilitation 30 facility in age, sex, geographic location or other 31 relevant demographic variables, plus an amount sufficient 32 to pay for the additional administrative costs of 33 providing coverage to employees of the rehabilitation 34 facility and their dependents. -24- LRB093 03466 LRD 11086 b 1 (2) In subsequent years, a further adjustment shall 2 be made to reflect the actual prior years' claims 3 experience of the employees of the rehabilitation 4 facility. 5 Monthly payments by the rehabilitation facility or its 6 employees for group health benefits shall be deposited in the 7 Local Government Health Insurance Reserve Fund. 8 (k) Any domestic violence shelter or service within the 9 State of Illinois may apply to the Director to have its 10 employees, annuitants, and their dependents provided group 11 health coverage under this Act on a non-insured basis. To 12 participate, a domestic violence shelter or service must 13 agree to enroll all of its employees and pay the entire cost 14 of providing such coverage for its employees. A 15 participating domestic violence shelter may also elect to 16 cover its annuitants. Dependent coverage shall be offered on 17 an optional basis, with the costs paid by the domestic 18 violence shelter or service, its employees, or some 19 combination of the 2 as determined by the domestic violence 20 shelter or service. The domestic violence shelter or service 21 shall be responsible for timely collection and transmission 22 of dependent premiums. 23 The Director shall annually determine rates of payment, 24 subject to the following constraints: 25 (1) In the first year of coverage, the rates shall 26 be equal to the amount normally charged to State 27 employees for elected optional coverages or for enrolled 28 dependents coverages or other contributory coverages on 29 behalf of its employees, adjusted for differences between 30 State employees and employees of the domestic violence 31 shelter or service in age, sex, geographic location or 32 other relevant demographic variables, plus an amount 33 sufficient to pay for the additional administrative costs 34 of providing coverage to employees of the domestic -25- LRB093 03466 LRD 11086 b 1 violence shelter or service and their dependents. 2 (2) In subsequent years, a further adjustment shall 3 be made to reflect the actual prior years' claims 4 experience of the employees of the domestic violence 5 shelter or service. 6 Monthly payments by the domestic violence shelter or 7 service or its employees for group health insurance shall be 8 deposited in the Local Government Health Insurance Reserve 9 Fund. 10 (k-5) Any qualified small business or self-employed 11 person within the State of Illinois may apply to the Director 12 to have its employees, annuitants, and their dependents 13 provided group health coverage under this Act on a 14 non-insured basis. The Department may set a limit on the 15 number of qualified small businesses and self-employed 16 persons that may receive group health coverage under this 17 subsection (k-5). In order to control its costs, the 18 Department may designate which plans it will offer to 19 qualified small businesses and self-employed persons under 20 this subsection (k-5). Those plans may include, but need not 21 be limited to, minimum, limited, or comprehensive coverage 22 plans; Health Maintenance Organization and Preferred Provider 23 Organization plans; and medical savings plans. In offering 24 plans under this subsection (k-5) the Department shall be 25 subject to ratings and minimum coverage in the same manner as 26 a private insurer. A qualified small business or 27 self-employed person may select one or more of the plans 28 offered by the Department to offer to its employees. To 29 participate, a qualified small business or self-employed 30 person must agree to offer to enroll all of its employees and 31 pay the entire cost of providing such coverage for its 32 employees. A participating qualified small business or 33 self-employed person may also elect to cover its annuitants. 34 Dependent coverage shall be offered on an optional basis, -26- LRB093 03466 LRD 11086 b 1 with the costs paid by the self-employed person or small 2 business, its employees, or some combination of the 2 as 3 determined by the self-employed person or qualified small 4 business. The qualified small business or self-employed 5 person shall be responsible for timely collection and 6 transmission of dependent premiums. 7 The Director shall annually determine rates of payment, 8 subject to the following constraints: 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 or self-employed person in age, sex, geographic 16 location or other relevant demographic variables, plus an 17 amount sufficient to pay for the additional 18 administrative costs of providing coverage to employees 19 of the qualified small business or self-employed person 20 and their dependents. 21 (2) In subsequent years, a further adjustment shall 22 be made to reflect the actual prior years' claims 23 experience of the employees of the qualified small 24 business or self-employed person. 25 Monthly payments by the qualified small business or 26 self-employed person for group health insurance shall be 27 deposited into the Small Employers Health Insurance Reserve 28 Fund. The Small Employers Health Insurance Reserve Fund 29 shall be a continuing fund not subject to fiscal year 30 limitations. All expenditures from this fund shall be used 31 for payments for health care benefits for self-employed 32 persons and employees of qualified small businesses and their 33 annuitants and dependents and to reimburse the Department or 34 its administrative service organization for all expenses -27- LRB093 03466 LRD 11086 b 1 incurred in the administration of benefits. No other State 2 funds may be used for these purposes. 3 (l) A public community college or entity organized 4 pursuant to the Public Community College Act may apply to the 5 Director initially to have only annuitants not covered prior 6 to July 1, 1992 by the district's health plan provided health 7 coverage under this Act on a non-insured basis. The 8 community college must execute a 2-year contract to 9 participate in the Local Government Health Plan. Any 10 annuitant may enroll in the event of a qualifying change in 11 status, special enrollment, special circumstance as defined 12 by the Director, or during the annual Benefit Choice Period. 13 The Director shall annually determine monthly rates of 14 payment subject to the following constraints: for those 15 community colleges with annuitants only enrolled, first year 16 rates shall be equal to the average cost to cover claims for 17 a State member adjusted for demographics, Medicare 18 participation, and other factors; and in the second year, a 19 further adjustment of rates shall be made to reflect the 20 actual first year's claims experience of the covered 21 annuitants. 22 (l-5) The provisions of subsection (l) become 23 inoperative on July 1, 1999. 24 (m) The Director shall adopt any rules deemed necessary 25 for implementation of this amendatory Act of 1989 (Public Act 26 86-978). 27 (Source: P.A. 91-280, eff. 7-23-99; 91-311; eff. 7-29-99; 28 91-357, eff. 7-29-99; 91-390, eff. 7-30-99; 91-395, eff. 29 7-30-99; 91-617, eff. 8-19-99; 92-16, eff. 6-28-01; revised 30 2-25-02.) 31 (5 ILCS 375/13.2) (from Ch. 127, par. 533.2) 32 Sec. 13.2. Insurance reserve funds; investments. All 33 amounts held in the Health Insurance Reserve Fund, the Group -28- LRB093 03466 LRD 11086 b 1 Insurance Premium Fund, the Small Employers Health Insurance 2 Reserve Fund, and the Local Government Health Insurance 3 Reserve Fund shall be invested, at interest, by the State 4 Treasurer. The investments shall be subject to terms, 5 conditions, and limitations imposed by the laws of Illinois 6 on State funds. All income derived from the investments 7 shall accrue and be deposited to the respective funds no less 8 frequently than quarterly. The Health Insurance Reserve 9 Fund, the Small Employers Health Insurance Reserve Fund, and 10 the Local Government Health Insurance Reserve Fund shall be 11 administered by the Director. 12 (Source: P.A. 91-390, eff. 7-30-99.) 13 (5 ILCS 375/15) (from Ch. 127, par. 535) 14 Sec. 15. Administration; rules; audit; review. 15 (a) The Director shall administer this Act and shall 16 prescribe such rules and regulations as are necessary to give 17 full effect to the purposes of this Act. 18 (b) These rules may fix reasonable standards for the 19 group life and group health programs and other benefit 20 programs offered under this Act, and for the contractors 21 providing them. 22 (c) These rules shall specify that covered and optional 23 medical services of the program are services provided within 24 the scope of their licenses by practitioners in all 25 categories licensed under the Medical Practice Act of 1987 26 and shall provide that all eligible persons be fully informed 27 of this specification. 28 (d) These rules shall establish eligibility requirements 29 for members and dependents as may be necessary to supplement 30 or clarify requirements contained in this Act. 31 (e) Each affected department of the State, the State 32 Universities Retirement System, the Teachers' Retirement 33 System, and each qualified local government, rehabilitation -29- LRB093 03466 LRD 11086 b 1 facility,ordomestic violence shelter or service, small 2 business, or self-employed person shall keep such records, 3 make such certifications, and furnish the Director such 4 information as may be necessary for the administration of 5 this Act, including information concerning number and total 6 amounts of payroll of employees of the department who are 7 paid from trust funds or federal funds. 8 (f) Each member, each community college benefit 9 recipient to whom this Act applies, and each TRS benefit 10 recipient to whom this Act applies shall furnish the 11 Director, in such form as may be required, any information 12 that may be necessary to enroll such member or benefit 13 recipient and, if applicable, his or her dependents or 14 dependent beneficiaries under the programs or plan, including 15 such data as may be required to allow the Director to 16 accumulate statistics on data normally considered in 17 actuarial studies of employee groups. Information about 18 community college benefit recipients and community college 19 dependent beneficiaries shall be furnished through the State 20 Universities Retirement System. Information about TRS 21 benefit recipients and TRS dependent beneficiaries shall be 22 furnished through the Teachers' Retirement System. 23 (g) There shall be audits and reports on the programs 24 authorized and established by this Act prepared by the 25 Director with the assistance of a qualified, independent 26 accounting firm. The reports shall provide information on 27 the experience, and administrative effectiveness and adequacy 28 of the program including, when applicable, recommendations on 29 up-grading of benefits and improvement of the program. 30 (h) Any final order, decision or other determination 31 made, issued or executed by the Director under the provisions 32 of this Act whereby any contractor or person is aggrieved 33 shall be subject to review in accordance with the provisions 34 of the Administrative Review Law and all amendments and -30- LRB093 03466 LRD 11086 b 1 modifications thereof, and the rules adopted pursuant 2 thereto, shall apply to and govern all proceedings for the 3 judicial review of final administrative decisions of the 4 Director. 5 (Source: P.A. 90-497, eff. 8-18-97; 91-390, eff. 7-30-99.) 6 Section 10. The State Finance Act is amended by changing 7 Section 25 as follows: 8 (30 ILCS 105/25) (from Ch. 127, par. 161) 9 Sec. 25. Fiscal year limitations. 10 (a) All appropriations shall be available for 11 expenditure for the fiscal year or for a lesser period if the 12 Act making that appropriation so specifies. A deficiency or 13 emergency appropriation shall be available for expenditure 14 only through June 30 of the year when the Act making that 15 appropriation is enacted unless that Act otherwise provides. 16 (b) Outstanding liabilities as of June 30, payable from 17 appropriations which have otherwise expired, may be paid out 18 of the expiring appropriations during the 2-month period 19 ending at the close of business on August 31. Any service 20 involving professional or artistic skills or any personal 21 services by an employee whose compensation is subject to 22 income tax withholding must be performed as of June 30 of the 23 fiscal year in order to be considered an "outstanding 24 liability as of June 30" that is thereby eligible for payment 25 out of the expiring appropriation. 26 However, payment of tuition reimbursement claims under 27 Section 14-7.03 or 18-3 of the School Code may be made by the 28 State Board of Education from its appropriations for those 29 respective purposes for any fiscal year, even though the 30 claims reimbursed by the payment may be claims attributable 31 to a prior fiscal year, and payments may be made at the 32 direction of the State Superintendent of Education from the -31- LRB093 03466 LRD 11086 b 1 fund from which the appropriation is made without regard to 2 any fiscal year limitations. 3 Medical payments may be made by the Department of 4 Veterans' Affairs from its appropriations for those purposes 5 for any fiscal year, without regard to the fact that the 6 medical services being compensated for by such payment may 7 have been rendered in a prior fiscal year. 8 Medical payments may be made by the Department of Public 9 Aid and child care payments may be made by the Department of 10 Human Services (as successor to the Department of Public Aid) 11 from appropriations for those purposes for any fiscal year, 12 without regard to the fact that the medical or child care 13 services being compensated for by such payment may have been 14 rendered in a prior fiscal year; and payments may be made at 15 the direction of the Department of Central Management 16 Services from the Health Insurance Reserve Fund, the Small 17 Employers Health Insurance Reserve Fund, and the Local 18 Government Health Insurance Reserve Fund without regard to 19 any fiscal year limitations. 20 Additionally, payments may be made by the Department of 21 Human Services from its appropriations, or any other State 22 agency from its appropriations with the approval of the 23 Department of Human Services, from the Immigration Reform and 24 Control Fund for purposes authorized pursuant to the 25 Immigration Reform and Control Act of 1986, without regard to 26 any fiscal year limitations. 27 Further, with respect to costs incurred in fiscal years 28 2002 and 2003 only, payments may be made by the State 29 Treasurer from its appropriations from the Capital Litigation 30 Trust Fund without regard to any fiscal year limitations. 31 (c) Further, payments may be made by the Department of 32 Public Health and the Department of Human Services (acting as 33 successor to the Department of Public Health under the 34 Department of Human Services Act) from their respective -32- LRB093 03466 LRD 11086 b 1 appropriations for grants for medical care to or on behalf of 2 persons suffering from chronic renal disease, persons 3 suffering from hemophilia, rape victims, and premature and 4 high-mortality risk infants and their mothers and for grants 5 for supplemental food supplies provided under the United 6 States Department of Agriculture Women, Infants and Children 7 Nutrition Program, for any fiscal year without regard to the 8 fact that the services being compensated for by such payment 9 may have been rendered in a prior fiscal year. 10 (d) The Department of Public Health and the Department 11 of Human Services (acting as successor to the Department of 12 Public Health under the Department of Human Services Act) 13 shall each annually submit to the State Comptroller, Senate 14 President, Senate Minority Leader, Speaker of the House, 15 House Minority Leader, and the respective Chairmen and 16 Minority Spokesmen of the Appropriations Committees of the 17 Senate and the House, on or before December 31, a report of 18 fiscal year funds used to pay for services provided in any 19 prior fiscal year. This report shall document by program or 20 service category those expenditures from the most recently 21 completed fiscal year used to pay for services provided in 22 prior fiscal years. 23 (e) The Department of Public Aid and the Department of 24 Human Services (acting as successor to the Department of 25 Public Aid) shall each annually submit to the State 26 Comptroller, Senate President, Senate Minority Leader, 27 Speaker of the House, House Minority Leader, the respective 28 Chairmen and Minority Spokesmen of the Appropriations 29 Committees of the Senate and the House, on or before November 30 30, a report that shall document by program or service 31 category those expenditures from the most recently completed 32 fiscal year used to pay for (i) services provided in prior 33 fiscal years and (ii) services for which claims were received 34 in prior fiscal years. -33- LRB093 03466 LRD 11086 b 1 (f) The Department of Human Services (as successor to 2 the Department of Public Aid) shall annually submit to the 3 State Comptroller, Senate President, Senate Minority Leader, 4 Speaker of the House, House Minority Leader, and the 5 respective Chairmen and Minority Spokesmen of the 6 Appropriations Committees of the Senate and the House, on or 7 before December 31, a report of fiscal year funds used to pay 8 for services (other than medical care) provided in any prior 9 fiscal year. This report shall document by program or 10 service category those expenditures from the most recently 11 completed fiscal year used to pay for services provided in 12 prior fiscal years. 13 (g) In addition, each annual report required to be 14 submitted by the Department of Public Aid under subsection 15 (e) shall include the following information with respect to 16 the State's Medicaid program: 17 (1) Explanations of the exact causes of the 18 variance between the previous year's estimated and actual 19 liabilities. 20 (2) Factors affecting the Department of Public 21 Aid's liabilities, including but not limited to numbers 22 of aid recipients, levels of medical service utilization 23 by aid recipients, and inflation in the cost of medical 24 services. 25 (3) The results of the Department's efforts to 26 combat fraud and abuse. 27 (h) As provided in Section 4 of the General Assembly 28 Compensation Act, any utility bill for service provided to a 29 General Assembly member's district office for a period 30 including portions of 2 consecutive fiscal years may be paid 31 from funds appropriated for such expenditure in either fiscal 32 year. 33 (i) An agency which administers a fund classified by the 34 Comptroller as an internal service fund may issue rules for: -34- LRB093 03466 LRD 11086 b 1 (1) billing user agencies in advance based on 2 estimated charges for goods or services; 3 (2) issuing credits during the subsequent fiscal 4 year for all user agency payments received during the 5 prior fiscal year which were in excess of the final 6 amounts owed by the user agency for that period; and 7 (3) issuing catch-up billings to user agencies 8 during the subsequent fiscal year for amounts remaining 9 due when payments received from the user agency during 10 the prior fiscal year were less than the total amount 11 owed for that period. 12 User agencies are authorized to reimburse internal service 13 funds for catch-up billings by vouchers drawn against their 14 respective appropriations for the fiscal year in which the 15 catch-up billing was issued. 16 (Source: P.A. 92-885, eff. 1-13-03.) 17 Section 99. Effective date. This Act takes effect on 18 January 1, 2004.