093_SB1432 LRB093 08085 JLS 08286 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 10 a program of group life insurance, a program of health 11 benefits and other employee benefits for persons in the 12 service of the State of Illinois, employees of local 13 governments, employees of rehabilitation facilities and 14 employees of domestic violence shelters and services, and 15 certain of their dependents. It is also the purpose of this 16 Act to provide a program of health benefits (i) for certain 17 benefit recipients of the Teachers' Retirement System of the 18 State of Illinois and their dependent beneficiaries and (ii) 19 for certain eligible retired community college employees and 20 their dependent beneficiaries. It is also the purpose of 21 this Act to provide a program of health benefits for (i) 22 owners and employees of qualified small businesses and their 23 dependents and (ii) self-employed persons and their 24 dependents. 25 (Source: P.A. 89-25, eff. 6-21-95; 90-497, eff. 8-18-97.) 26 (5 ILCS 375/3) (from Ch. 127, par. 523) 27 Sec. 3. Definitions. Unless the context otherwise 28 requires, the following words and phrases as used in this Act 29 shall have the following meanings. The Department may define 30 these and other words and phrases separately for the purpose -2- LRB093 08085 JLS 08286 b 1 of implementing specific programs providing benefits under 2 this Act. 3 (a) "Administrative service organization" means any 4 person, firm or corporation experienced in the handling of 5 claims which is fully qualified, financially sound and 6 capable of meeting the service requirements of a contract of 7 administration executed with the Department. 8 (b) "Annuitant" means (1) an employee who retires, or 9 has retired, on or after January 1, 1966 on an immediate 10 annuity under the provisions of Articles 2, 14, 15 (including 11 an employee who has retired under the optional retirement 12 program established under Section 15-158.2), paragraphs (2), 13 (3), or (5) of Section 16-106, or Article 18 of the Illinois 14 Pension Code; (2) any person who was receiving group 15 insurance coverage under this Act as of March 31, 1978 by 16 reason of his status as an annuitant, even though the annuity 17 in relation to which such coverage was provided is a 18 proportional annuity based on less than the minimum period of 19 service required for a retirement annuity in the system 20 involved; (3) any person not otherwise covered by this Act 21 who has retired as a participating member under Article 2 of 22 the Illinois Pension Code but is ineligible for the 23 retirement annuity under Section 2-119 of the Illinois 24 Pension Code; (4) the spouse of any person who is receiving a 25 retirement annuity under Article 18 of the Illinois Pension 26 Code and who is covered under a group health insurance 27 program sponsored by a governmental employer other than the 28 State of Illinois and who has irrevocably elected to waive 29 his or her coverage under this Act and to have his or her 30 spouse considered as the "annuitant" under this Act and not 31 as a "dependent"; or (5) an employee who retires, or has 32 retired, from a qualified position, as determined according 33 to rules promulgated by the Director, under a qualified local 34 government or a qualified rehabilitation facility or a -3- LRB093 08085 JLS 08286 b 1 qualified domestic violence shelter or service; or (6) an 2 owner or employee who retires, or has retired, from a 3 qualified position, as determined according to rules 4 promulgated by the Director, with a qualified small business 5 or as self-employed person. (For definition of "retired 6 employee", see (p) post). 7 (b-5) "New SERS annuitant" means a person who, on or 8 after January 1, 1998, becomes an annuitant, as defined in 9 subsection (b), by virtue of beginning to receive a 10 retirement annuity under Article 14 of the Illinois Pension 11 Code, and is eligible to participate in the basic program of 12 group health benefits provided for annuitants under this Act. 13 (b-6) "New SURS annuitant" means a person who (1) on or 14 after January 1, 1998, becomes an annuitant, as defined in 15 subsection (b), by virtue of beginning to receive a 16 retirement annuity under Article 15 of the Illinois Pension 17 Code, (2) has not made the election authorized under Section 18 15-135.1 of the Illinois Pension Code, and (3) is eligible to 19 participate in the basic program of group health benefits 20 provided for annuitants under this Act. 21 (b-7) "New TRS State annuitant" means a person who, on 22 or after July 1, 1998, becomes an annuitant, as defined in 23 subsection (b), by virtue of beginning to receive a 24 retirement annuity under Article 16 of the Illinois Pension 25 Code based on service as a teacher as defined in paragraph 26 (2), (3), or (5) of Section 16-106 of that Code, and is 27 eligible to participate in the basic program of group health 28 benefits provided for annuitants under this Act. 29 (c) "Carrier" means (1) an insurance company, a 30 corporation organized under the Limited Health Service 31 Organization Act or the Voluntary Health Services Plan Act, a 32 partnership, or other nongovernmental organization, which is 33 authorized to do group life or group health insurance 34 business in Illinois, or (2) the State of Illinois as a -4- LRB093 08085 JLS 08286 b 1 self-insurer. 2 (d) "Compensation" means salary or wages payable on a 3 regular payroll by the State Treasurer on a warrant of the 4 State Comptroller out of any State, trust or federal fund, or 5 by the Governor of the State through a disbursing officer of 6 the State out of a trust or out of federal funds, or by any 7 Department out of State, trust, federal or other funds held 8 by the State Treasurer or the Department, to any person for 9 personal services currently performed, and ordinary or 10 accidental disability benefits under Articles 2, 14, 15 11 (including ordinary or accidental disability benefits under 12 the optional retirement program established under Section 13 15-158.2), paragraphs (2), (3), or (5) of Section 16-106, or 14 Article 18 of the Illinois Pension Code, for disability 15 incurred after January 1, 1966, or benefits payable under the 16 Workers' Compensation or Occupational Diseases Act or 17 benefits payable under a sick pay plan established in 18 accordance with Section 36 of the State Finance Act. 19 "Compensation" also means salary or wages paid to an employee 20 of any qualified local government or qualified rehabilitation 21 facility or a qualified domestic violence shelter or service. 22 "Compensation" also means salary or wages paid to an employee 23 or owner of a qualified small business and earned income 24 earned by a self-employed person. 25 (e) "Commission" means the State Employees Group 26 Insurance Advisory Commission authorized by this Act. 27 Commencing July 1, 1984, "Commission" as used in this Act 28 means the Illinois Economic and Fiscal Commission as 29 established by the Legislative Commission Reorganization Act 30 of 1984. 31 (f) "Contributory", when referred to as contributory 32 coverage, shall mean optional coverages or benefits elected 33 by the member toward the cost of which such member makes 34 contribution, or which are funded in whole or in part through -5- LRB093 08085 JLS 08286 b 1 the acceptance of a reduction in earnings or the foregoing of 2 an increase in earnings by an employee, as distinguished from 3 noncontributory coverage or benefits which are paid entirely 4 by the State of Illinois without reduction of the member's 5 salary. 6 (g) "Department" means any department, institution, 7 board, commission, officer, court or any agency of the State 8 government receiving appropriations and having power to 9 certify payrolls to the Comptroller authorizing payments of 10 salary and wages against such appropriations as are made by 11 the General Assembly from any State fund, or against trust 12 funds held by the State Treasurer and includes boards of 13 trustees of the retirement systems created by Articles 2, 14, 14 15, 16 and 18 of the Illinois Pension Code. "Department" 15 also includes the Illinois Comprehensive Health Insurance 16 Board, the Board of Examiners established under the Illinois 17 Public Accounting Act, and the Illinois Rural Bond Bank. 18 (h) "Dependent", when the term is used in the context of 19 the health and life plan, means a member's spouse and any 20 unmarried child (1) from birth to age 19 including an adopted 21 child, a child who lives with the member from the time of the 22 filing of a petition for adoption until entry of an order of 23 adoption, a stepchild or recognized child who lives with the 24 member in a parent-child relationship, or a child who lives 25 with the member if such member is a court appointed guardian 26 of the child, or (2) age 19 to 23 enrolled as a full-time 27 student in any accredited school, financially dependent upon 28 the member, and eligible to be claimed as a dependent for 29 income tax purposes, or (3) age 19 or over who is mentally or 30 physically handicapped. For the health plan only, the term 31 "dependent" also includes any person enrolled prior to the 32 effective date of this Section who is dependent upon the 33 member to the extent that the member may claim such person as 34 a dependent for income tax deduction purposes; no other such -6- LRB093 08085 JLS 08286 b 1 person may be enrolled. For the health plan only, the term 2 "dependent" also includes any person who has received after 3 June 30, 2000 an organ transplant and who is financially 4 dependent upon the member and eligible to be claimed as a 5 dependent for income tax purposes. 6 (i) "Director" means the Director of the Illinois 7 Department of Central Management Services. 8 (j) "Eligibility period" means the period of time a 9 member has to elect enrollment in programs or to select 10 benefits without regard to age, sex or health. 11 (k) "Employee" means and includes each officer or 12 employee in the service of a department who (1) receives his 13 compensation for service rendered to the department on a 14 warrant issued pursuant to a payroll certified by a 15 department or on a warrant or check issued and drawn by a 16 department upon a trust, federal or other fund or on a 17 warrant issued pursuant to a payroll certified by an elected 18 or duly appointed officer of the State or who receives 19 payment of the performance of personal services on a warrant 20 issued pursuant to a payroll certified by a Department and 21 drawn by the Comptroller upon the State Treasurer against 22 appropriations made by the General Assembly from any fund or 23 against trust funds held by the State Treasurer, and (2) is 24 employed full-time or part-time in a position normally 25 requiring actual performance of duty during not less than 1/2 26 of a normal work period, as established by the Director in 27 cooperation with each department, except that persons elected 28 by popular vote will be considered employees during the 29 entire term for which they are elected regardless of hours 30 devoted to the service of the State, and (3) except that 31 "employee" does not include any person who is not eligible by 32 reason of such person's employment to participate in one of 33 the State retirement systems under Articles 2, 14, 15 (either 34 the regular Article 15 system or the optional retirement -7- LRB093 08085 JLS 08286 b 1 program established under Section 15-158.2) or 18, or under 2 paragraph (2), (3), or (5) of Section 16-106, of the Illinois 3 Pension Code, but such term does include persons who are 4 employed during the 6 month qualifying period under Article 5 14 of the Illinois Pension Code. Such term also includes any 6 person who (1) after January 1, 1966, is receiving ordinary 7 or accidental disability benefits under Articles 2, 14, 15 8 (including ordinary or accidental disability benefits under 9 the optional retirement program established under Section 10 15-158.2), paragraphs (2), (3), or (5) of Section 16-106, or 11 Article 18 of the Illinois Pension Code, for disability 12 incurred after January 1, 1966, (2) receives total permanent 13 or total temporary disability under the Workers' Compensation 14 Act or Occupational Disease Act as a result of injuries 15 sustained or illness contracted in the course of employment 16 with the State of Illinois, or (3) is not otherwise covered 17 under this Act and has retired as a participating member 18 under Article 2 of the Illinois Pension Code but is 19 ineligible for the retirement annuity under Section 2-119 of 20 the Illinois Pension Code. However, a person who satisfies 21 the criteria of the foregoing definition of "employee" except 22 that such person is made ineligible to participate in the 23 State Universities Retirement System by clause (4) of 24 subsection (a) of Section 15-107 of the Illinois Pension Code 25 is also an "employee" for the purposes of this Act. 26 "Employee" also includes any person receiving or eligible for 27 benefits under a sick pay plan established in accordance with 28 Section 36 of the State Finance Act. "Employee" also includes 29 each officer or employee in the service of a qualified local 30 government, including persons appointed as trustees of 31 sanitary districts regardless of hours devoted to the service 32 of the sanitary district, and each employee in the service of 33 a qualified rehabilitation facility and each full-time 34 employee in the service of a qualified domestic violence -8- LRB093 08085 JLS 08286 b 1 shelter or service, as determined according to rules 2 promulgated by the Director. "Employee" also includes an 3 owner and a full-time employee in the service of a qualified 4 small business and a self-employed person, as determined 5 according to rules promulgated by the Director. 6 (l) "Member" means an employee, annuitant, retired 7 employee or survivor. 8 (m) "Optional coverages or benefits" means those 9 coverages or benefits available to the member on his or her 10 voluntary election, and at his or her own expense. 11 (n) "Program" means the group life insurance, health 12 benefits and other employee benefits designed and contracted 13 for by the Director under this Act. 14 (o) "Health plan" means a health benefits program 15 offered by the State of Illinois for persons eligible for the 16 plan. 17 (p) "Retired employee" means any person who would be an 18 annuitant as that term is defined herein but for the fact 19 that such person retired prior to January 1, 1966. Such term 20 also includes any person formerly employed by the University 21 of Illinois in the Cooperative Extension Service who would be 22 an annuitant but for the fact that such person was made 23 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. 26 (q) "Survivor" means a person receiving an annuity as a 27 survivor of an employee or of an annuitant. "Survivor" also 28 includes: (1) the surviving dependent of a person who 29 satisfies the definition of "employee" except that such 30 person is made ineligible to participate in the State 31 Universities Retirement System by clause (4) of subsection 32 (a) of Section 15-107 of the Illinois Pension Code; and (2) 33 the surviving dependent of any person formerly employed by 34 the University of Illinois in the Cooperative Extension -9- LRB093 08085 JLS 08286 b 1 Service who would be an annuitant except for the fact that 2 such person was made ineligible to participate in the State 3 Universities Retirement System by clause (4) of subsection 4 (a) of Section 15-107 of the Illinois Pension Code. 5 (q-5) "New SERS survivor" means a survivor, as defined 6 in subsection (q), whose annuity is paid under Article 14 of 7 the Illinois Pension Code and is based on the death of (i) an 8 employee whose death occurs on or after January 1, 1998, or 9 (ii) a new SERS annuitant as defined in subsection (b-5). 10 (q-6) "New SURS survivor" means a survivor, as defined 11 in subsection (q), whose annuity is paid under Article 15 of 12 the Illinois Pension Code and is based on the death of (i) an 13 employee whose death occurs on or after January 1, 1998, or 14 (ii) a new SURS annuitant as defined in subsection (b-6). 15 (q-7) "New TRS State survivor" means a survivor, as 16 defined in subsection (q), whose annuity is paid under 17 Article 16 of the Illinois Pension Code and is based on the 18 death of (i) an employee who is a teacher as defined in 19 paragraph (2), (3), or (5) of Section 16-106 of that Code and 20 whose death occurs on or after July 1, 1998, or (ii) a new 21 TRS State annuitant as defined in subsection (b-7). 22 (r) "Medical services" means the services provided 23 within the scope of their licenses by practitioners in all 24 categories licensed under the Medical Practice Act of 1987. 25 (s) "Unit of local government" means any county, 26 municipality, township, school district (including a 27 combination of school districts under the Intergovernmental 28 Cooperation Act), special district or other unit, designated 29 as a unit of local government by law, which exercises limited 30 governmental powers or powers in respect to limited 31 governmental subjects, any not-for-profit association with a 32 membership that primarily includes townships and township 33 officials, that has duties that include provision of research 34 service, dissemination of information, and other acts for the -10- LRB093 08085 JLS 08286 b 1 purpose of improving township government, and that is funded 2 wholly or partly in accordance with Section 85-15 of the 3 Township Code; any not-for-profit corporation or association, 4 with a membership consisting primarily of municipalities, 5 that operates its own utility system, and provides research, 6 training, dissemination of information, or other acts to 7 promote cooperation between and among municipalities that 8 provide utility services and for the advancement of the goals 9 and purposes of its membership; the Southern Illinois 10 Collegiate Common Market, which is a consortium of higher 11 education institutions in Southern Illinois; and the Illinois 12 Association of Park Districts. "Qualified local government" 13 means a unit of local government approved by the Director and 14 participating in a program created under subsection (i) of 15 Section 10 of this Act. 16 (t) "Qualified rehabilitation facility" means any 17 not-for-profit organization that is accredited by the 18 Commission on Accreditation of Rehabilitation Facilities or 19 certified by the Department of Human Services (as successor 20 to the Department of Mental Health and Developmental 21 Disabilities) to provide services to persons with 22 disabilities and which receives funds from the State of 23 Illinois for providing those services, approved by the 24 Director and participating in a program created under 25 subsection (j) of Section 10 of this Act. 26 (u) "Qualified domestic violence shelter or service" 27 means any Illinois domestic violence shelter or service and 28 its administrative offices funded by the Department of Human 29 Services (as successor to the Illinois Department of Public 30 Aid), approved by the Director and participating in a program 31 created under subsection (k) of Section 10. 32 (v) "TRS benefit recipient" means a person who: 33 (1) is not a "member" as defined in this Section; 34 and -11- LRB093 08085 JLS 08286 b 1 (2) is receiving a monthly benefit or retirement 2 annuity under Article 16 of the Illinois Pension Code; 3 and 4 (3) either (i) has at least 8 years of creditable 5 service under Article 16 of the Illinois Pension Code, or 6 (ii) was enrolled in the health insurance program offered 7 under that Article on January 1, 1996, or (iii) is the 8 survivor of a benefit recipient who had at least 8 years 9 of creditable service under Article 16 of the Illinois 10 Pension Code or was enrolled in the health insurance 11 program offered under that Article on the effective date 12 of this amendatory Act of 1995, or (iv) is a recipient or 13 survivor of a recipient of a disability benefit under 14 Article 16 of the Illinois Pension Code. 15 (w) "TRS dependent beneficiary" means a person who: 16 (1) is not a "member" or "dependent" as defined in 17 this Section; and 18 (2) is a TRS benefit recipient's: (A) spouse, (B) 19 dependent parent who is receiving at least half of his or 20 her support from the TRS benefit recipient, or (C) 21 unmarried natural or adopted child who is (i) under age 22 19, or (ii) enrolled as a full-time student in an 23 accredited school, financially dependent upon the TRS 24 benefit recipient, eligible to be claimed as a dependent 25 for income tax purposes, and either is under age 24 or 26 was, on January 1, 1996, participating as a dependent 27 beneficiary in the health insurance program offered under 28 Article 16 of the Illinois Pension Code, or (iii) age 19 29 or over who is mentally or physically handicapped. 30 (x) "Military leave with pay and benefits" refers to 31 individuals in basic training for reserves, special/advanced 32 training, annual training, emergency call up, or activation 33 by the President of the United States with approved pay and 34 benefits. -12- LRB093 08085 JLS 08286 b 1 (y) "Military leave without pay and benefits" refers to 2 individuals who enlist for active duty in a regular component 3 of the U.S. Armed Forces or other duty not specified or 4 authorized under military leave with pay and benefits. 5 (z) "Community college benefit recipient" means a person 6 who: 7 (1) is not a "member" as defined in this Section; 8 and 9 (2) is receiving a monthly survivor's annuity or 10 retirement annuity under Article 15 of the Illinois 11 Pension Code; and 12 (3) either (i) was a full-time employee of a 13 community college district or an association of community 14 college boards created under the Public Community College 15 Act (other than an employee whose last employer under 16 Article 15 of the Illinois Pension Code was a community 17 college district subject to Article VII of the Public 18 Community College Act) and was eligible to participate in 19 a group health benefit plan as an employee during the 20 time of employment with a community college district 21 (other than a community college district subject to 22 Article VII of the Public Community College Act) or an 23 association of community college boards, or (ii) is the 24 survivor of a person described in item (i). 25 (aa) "Community college dependent beneficiary" means a 26 person who: 27 (1) is not a "member" or "dependent" as defined in 28 this Section; and 29 (2) is a community college benefit recipient's: (A) 30 spouse, (B) dependent parent who is receiving at least 31 half of his or her support from the community college 32 benefit recipient, or (C) unmarried natural or adopted 33 child who is (i) under age 19, or (ii) enrolled as a 34 full-time student in an accredited school, financially -13- LRB093 08085 JLS 08286 b 1 dependent upon the community college benefit recipient, 2 eligible to be claimed as a dependent for income tax 3 purposes and under age 23, or (iii) age 19 or over and 4 mentally or physically handicapped. 5 (bb) "Qualified small business" means a business 6 situated in Illinois having 25 or fewer employees, approved 7 by the Director and participating in a program created under 8 subsection (k-5) of Section 10. 9 (cc) "Self-employed person" means a person engaged in a 10 business enterprise as a self-employed person or who is 11 conducting another self-employed occupation or profession and 12 is participating in a program created under subsection (k-5) 13 of Section 10. 14 (Source: P.A. 91-390, eff. 7-30-99; 91-395, eff. 7-30-99; 15 91-617, eff. 8-19-99; 92-16, eff. 6-28-01; 92-186, eff. 16 1-1-02; 92-204, eff. 8-1-01; 92-651, eff. 7-11-02.) 17 (5 ILCS 375/10) (from Ch. 127, par. 530) 18 Sec. 10. Payments by State; premiums. 19 (a) The State shall pay the cost of basic 20 non-contributory group life insurance and, subject to member 21 paid contributions set by the Department or required by this 22 Section, the basic program of group health benefits on each 23 eligible member, except a member, not otherwise covered by 24 this Act, who has retired as a participating member under 25 Article 2 of the Illinois Pension Code but is ineligible for 26 the retirement annuity under Section 2-119 of the Illinois 27 Pension Code, and part of each eligible member's and retired 28 member's premiums for health insurance coverage for enrolled 29 dependents as provided by Section 9. The State shall pay the 30 cost of the basic program of group health benefits only after 31 benefits are reduced by the amount of benefits covered by 32 Medicare for all members and dependents who are eligible for 33 benefits under Social Security or the Railroad Retirement -14- LRB093 08085 JLS 08286 b 1 system or who had sufficient Medicare-covered government 2 employment, except that such reduction in benefits shall 3 apply only to those members and dependents who (1) first 4 become eligible for such Medicare coverage on or after July 5 1, 1992; or (2) are Medicare-eligible members or dependents 6 of a local government unit which began participation in the 7 program on or after July 1, 1992; or (3) remain eligible for, 8 but no longer receive Medicare coverage which they had been 9 receiving on or after July 1, 1992. The Department may 10 determine the aggregate level of the State's contribution on 11 the basis of actual cost of medical services adjusted for 12 age, sex or geographic or other demographic characteristics 13 which affect the costs of such programs. 14 The cost of participation in the basic program of group 15 health benefits for the dependent or survivor of a living or 16 deceased retired employee who was formerly employed by the 17 University of Illinois in the Cooperative Extension Service 18 and would be an annuitant but for the fact that he or she was 19 made ineligible to participate in the State Universities 20 Retirement System by clause (4) of subsection (a) of Section 21 15-107 of the Illinois Pension Code shall not be greater than 22 the cost of participation that would otherwise apply to that 23 dependent or survivor if he or she were the dependent or 24 survivor of an annuitant under the State Universities 25 Retirement System. 26 (a-1) Beginning January 1, 1998, for each person who 27 becomes a new SERS annuitant and participates in the basic 28 program of group health benefits, the State shall contribute 29 toward the cost of the annuitant's coverage under the basic 30 program of group health benefits an amount equal to 5% of 31 that cost for each full year of creditable service upon which 32 the annuitant's retirement annuity is based, up to a maximum 33 of 100% for an annuitant with 20 or more years of creditable 34 service. The remainder of the cost of a new SERS annuitant's -15- LRB093 08085 JLS 08286 b 1 coverage under the basic program of group health benefits 2 shall be the responsibility of the annuitant. 3 (a-2) Beginning January 1, 1998, for each person who 4 becomes a new SERS survivor and participates in the basic 5 program of group health benefits, the State shall contribute 6 toward the cost of the survivor's coverage under the basic 7 program of group health benefits an amount equal to 5% of 8 that cost for each full year of the deceased employee's or 9 deceased annuitant's creditable service in the State 10 Employees' Retirement System of Illinois on the date of 11 death, up to a maximum of 100% for a survivor of an employee 12 or annuitant with 20 or more years of creditable service. 13 The remainder of the cost of the new SERS survivor's coverage 14 under the basic program of group health benefits shall be the 15 responsibility of the survivor. 16 (a-3) Beginning January 1, 1998, for each person who 17 becomes a new SURS annuitant and participates in the basic 18 program of group health benefits, the State shall contribute 19 toward the cost of the annuitant's coverage under the basic 20 program of group health benefits an amount equal to 5% of 21 that cost for each full year of creditable service upon which 22 the annuitant's retirement annuity is based, up to a maximum 23 of 100% for an annuitant with 20 or more years of creditable 24 service. The remainder of the cost of a new SURS annuitant's 25 coverage under the basic program of group health benefits 26 shall be the responsibility of the annuitant. 27 (a-4) (Blank). 28 (a-5) Beginning January 1, 1998, for each person who 29 becomes a new SURS survivor and participates in the basic 30 program of group health benefits, the State shall contribute 31 toward the cost of the survivor's coverage under the basic 32 program of group health benefits an amount equal to 5% of 33 that cost for each full year of the deceased employee's or 34 deceased annuitant's creditable service in the State -16- LRB093 08085 JLS 08286 b 1 Universities Retirement System on the date of death, up to a 2 maximum of 100% for a survivor of an employee or annuitant 3 with 20 or more years of creditable service. The remainder 4 of the cost of the new SURS survivor's coverage under the 5 basic program of group health benefits shall be the 6 responsibility of the survivor. 7 (a-6) Beginning July 1, 1998, for each person who 8 becomes a new TRS State annuitant and participates in the 9 basic program of group health benefits, the State shall 10 contribute toward the cost of the annuitant's coverage under 11 the basic program of group health benefits an amount equal to 12 5% of that cost for each full year of creditable service as a 13 teacher as defined in paragraph (2), (3), or (5) of Section 14 16-106 of the Illinois Pension Code upon which the 15 annuitant's retirement annuity is based, up to a maximum of 16 100%; except that the State contribution shall be 12.5% per 17 year (rather than 5%) for each full year of creditable 18 service as a regional superintendent or assistant regional 19 superintendent of schools. The remainder of the cost of a 20 new TRS State annuitant's coverage under the basic program of 21 group health benefits shall be the responsibility of the 22 annuitant. 23 (a-7) Beginning July 1, 1998, for each person who 24 becomes a new TRS State survivor and participates in the 25 basic program of group health benefits, the State shall 26 contribute toward the cost of the survivor's coverage under 27 the basic program of group health benefits an amount equal to 28 5% of that cost for each full year of the deceased employee's 29 or deceased annuitant's creditable service as a teacher as 30 defined in paragraph (2), (3), or (5) of Section 16-106 of 31 the Illinois Pension Code on the date of death, up to a 32 maximum of 100%; except that the State contribution shall be 33 12.5% per year (rather than 5%) for each full year of the 34 deceased employee's or deceased annuitant's creditable -17- LRB093 08085 JLS 08286 b 1 service as a regional superintendent or assistant regional 2 superintendent of schools. The remainder of the cost of the 3 new TRS State survivor's coverage under the basic program of 4 group health benefits shall be the responsibility of the 5 survivor. 6 (a-8) A new SERS annuitant, new SERS survivor, new SURS 7 annuitant, new SURS survivor, new TRS State annuitant, or new 8 TRS State survivor may waive or terminate coverage in the 9 program of group health benefits. Any such annuitant or 10 survivor who has waived or terminated coverage may enroll or 11 re-enroll in the program of group health benefits only during 12 the annual benefit choice period, as determined by the 13 Director; except that in the event of termination of coverage 14 due to nonpayment of premiums, the annuitant or survivor may 15 not re-enroll in the program. 16 (a-9) No later than May 1 of each calendar year, the 17 Director of Central Management Services shall certify in 18 writing to the Executive Secretary of the State Employees' 19 Retirement System of Illinois the amounts of the Medicare 20 supplement health care premiums and the amounts of the health 21 care premiums for all other retirees who are not Medicare 22 eligible. 23 A separate calculation of the premiums based upon the 24 actual cost of each health care plan shall be so certified. 25 The Director of Central Management Services shall provide 26 to the Executive Secretary of the State Employees' Retirement 27 System of Illinois such information, statistics, and other 28 data as he or she may require to review the premium amounts 29 certified by the Director of Central Management Services. 30 (b) State employees who become eligible for this program 31 on or after January 1, 1980 in positions normally requiring 32 actual performance of duty not less than 1/2 of a normal work 33 period but not equal to that of a normal work period, shall 34 be given the option of participating in the available -18- LRB093 08085 JLS 08286 b 1 program. If the employee elects coverage, the State shall 2 contribute on behalf of such employee to the cost of the 3 employee's benefit and any applicable dependent supplement, 4 that sum which bears the same percentage as that percentage 5 of time the employee regularly works when compared to normal 6 work period. 7 (c) The basic non-contributory coverage from the basic 8 program of group health benefits shall be continued for each 9 employee not in pay status or on active service by reason of 10 (1) leave of absence due to illness or injury, (2) authorized 11 educational leave of absence or sabbatical leave, or (3) 12 military leave with pay and benefits. This coverage shall 13 continue until expiration of authorized leave and return to 14 active service, but not to exceed 24 months for leaves under 15 item (1) or (2). This 24-month limitation and the requirement 16 of returning to active service shall not apply to persons 17 receiving ordinary or accidental disability benefits or 18 retirement benefits through the appropriate State retirement 19 system or benefits under the Workers' Compensation or 20 Occupational Disease Act. 21 (d) The basic group life insurance coverage shall 22 continue, with full State contribution, where such person is 23 (1) absent from active service by reason of disability 24 arising from any cause other than self-inflicted, (2) on 25 authorized educational leave of absence or sabbatical leave, 26 or (3) on military leave with pay and benefits. 27 (e) Where the person is in non-pay status for a period 28 in excess of 30 days or on leave of absence, other than by 29 reason of disability, educational or sabbatical leave, or 30 military leave with pay and benefits, such person may 31 continue coverage only by making personal payment equal to 32 the amount normally contributed by the State on such person's 33 behalf. Such payments and coverage may be continued: (1) 34 until such time as the person returns to a status eligible -19- LRB093 08085 JLS 08286 b 1 for coverage at State expense, but not to exceed 24 months, 2 (2) until such person's employment or annuitant status with 3 the State is terminated, or (3) for a maximum period of 4 4 years for members on military leave with pay and benefits and 5 military leave without pay and benefits (exclusive of any 6 additional service imposed pursuant to law). 7 (f) The Department shall establish by rule the extent 8 to which other employee benefits will continue for persons in 9 non-pay status or who are not in active service. 10 (g) The State shall not pay the cost of the basic 11 non-contributory group life insurance, program of health 12 benefits and other employee benefits for members who are 13 survivors as defined by paragraphs (1) and (2) of subsection 14 (q) of Section 3 of this Act. The costs of benefits for 15 these survivors shall be paid by the survivors or by the 16 University of Illinois Cooperative Extension Service, or any 17 combination thereof. However, the State shall pay the amount 18 of the reduction in the cost of participation, if any, 19 resulting from the amendment to subsection (a) made by this 20 amendatory Act of the 91st General Assembly. 21 (h) Those persons occupying positions with any 22 department as a result of emergency appointments pursuant to 23 Section 8b.8 of the Personnel Code who are not considered 24 employees under this Act shall be given the option of 25 participating in the programs of group life insurance, health 26 benefits and other employee benefits. Such persons electing 27 coverage may participate only by making payment equal to the 28 amount normally contributed by the State for similarly 29 situated employees. Such amounts shall be determined by the 30 Director. Such payments and coverage may be continued until 31 such time as the person becomes an employee pursuant to this 32 Act or such person's appointment is terminated. 33 (i) Any unit of local government within the State of 34 Illinois may apply to the Director to have its employees, -20- LRB093 08085 JLS 08286 b 1 annuitants, and their dependents provided group health 2 coverage under this Act on a non-insured basis. To 3 participate, a unit of local government must agree to enroll 4 all of its employees, who may select coverage under either 5 the State group health benefits plan or a health maintenance 6 organization that has contracted with the State to be 7 available as a health care provider for employees as defined 8 in this Act. A unit of local government must remit the 9 entire cost of providing coverage under the State group 10 health benefits plan or, for coverage under a health 11 maintenance organization, an amount determined by the 12 Director based on an analysis of the sex, age, geographic 13 location, or other relevant demographic variables for its 14 employees, except that the unit of local government shall not 15 be required to enroll those of its employees who are covered 16 spouses or dependents under this plan or another group policy 17 or plan providing health benefits as long as (1) an 18 appropriate official from the unit of local government 19 attests that each employee not enrolled is a covered spouse 20 or dependent under this plan or another group policy or plan, 21 and (2) at least 85% of the employees are enrolled and the 22 unit of local government remits the entire cost of providing 23 coverage to those employees, except that a participating 24 school district must have enrolled at least 85% of its 25 full-time employees who have not waived coverage under the 26 district's group health plan by participating in a component 27 of the district's cafeteria plan. A participating school 28 district is not required to enroll a full-time employee who 29 has waived coverage under the district's health plan, 30 provided that an appropriate official from the participating 31 school district attests that the full-time employee has 32 waived coverage by participating in a component of the 33 district's cafeteria plan. For the purposes of this 34 subsection, "participating school district" includes a unit -21- LRB093 08085 JLS 08286 b 1 of local government whose primary purpose is education as 2 defined by the Department's rules. 3 Employees of a participating unit of local government who 4 are not enrolled due to coverage under another group health 5 policy or plan may enroll in the event of a qualifying change 6 in status, special enrollment, special circumstance as 7 defined by the Director, or during the annual Benefit Choice 8 Period. A participating unit of local government may also 9 elect to cover its annuitants. Dependent coverage shall be 10 offered on an optional basis, with the costs paid by the unit 11 of local government, its employees, or some combination of 12 the two as determined by the unit of local government. The 13 unit of local government shall be responsible for timely 14 collection and transmission of dependent premiums. 15 The Director shall annually determine monthly rates of 16 payment, subject to the following constraints: 17 (1) In the first year of coverage, the rates shall 18 be equal to the amount normally charged to State 19 employees for elected optional coverages or for enrolled 20 dependents coverages or other contributory coverages, or 21 contributed by the State for basic insurance coverages on 22 behalf of its employees, adjusted for differences between 23 State employees and employees of the local government in 24 age, sex, geographic location or other relevant 25 demographic variables, plus an amount sufficient to pay 26 for the additional administrative costs of providing 27 coverage to employees of the unit of local government and 28 their dependents. 29 (2) In subsequent years, a further adjustment shall 30 be made to reflect the actual prior years' claims 31 experience of the employees of the unit of local 32 government. 33 In the case of coverage of local government employees 34 under a health maintenance organization, the Director shall -22- LRB093 08085 JLS 08286 b 1 annually determine for each participating unit of local 2 government the maximum monthly amount the unit may contribute 3 toward that coverage, based on an analysis of (i) the age, 4 sex, geographic location, and other relevant demographic 5 variables of the unit's employees and (ii) the cost to cover 6 those employees under the State group health benefits plan. 7 The Director may similarly determine the maximum monthly 8 amount each unit of local government may contribute toward 9 coverage of its employees' dependents under a health 10 maintenance organization. 11 Monthly payments by the unit of local government or its 12 employees for group health benefits plan or health 13 maintenance organization coverage shall be deposited in the 14 Local Government Health Insurance Reserve Fund. 15 The Local Government Health Insurance Reserve Fund shall 16 be a continuing fund not subject to fiscal year limitations. 17 All expenditures from this Fund shall be used for payments 18 for health care benefits for local government, domestic 19 violence shelter or service, and rehabilitation facility 20 employees, annuitants, and dependents, and to reimburse the 21 Department or its administrative service organization for all 22 expenses incurred in the administration of benefits. No 23 other State funds may be used for these purposes. 24 A local government employer's participation or desire to 25 participate in a program created under this subsection shall 26 not limit that employer's duty to bargain with the 27 representative of any collective bargaining unit of its 28 employees. 29 (j) Any rehabilitation facility within the State of 30 Illinois may apply to the Director to have its employees, 31 annuitants, and their eligible dependents provided group 32 health coverage under this Act on a non-insured basis. To 33 participate, a rehabilitation facility must agree to enroll 34 all of its employees and remit the entire cost of providing -23- LRB093 08085 JLS 08286 b 1 such coverage for its employees, except that the 2 rehabilitation facility shall not be required to enroll those 3 of its employees who are covered spouses or dependents under 4 this plan or another group policy or plan providing health 5 benefits as long as (1) an appropriate official from the 6 rehabilitation facility attests that each employee not 7 enrolled is a covered spouse or dependent under this plan or 8 another group policy or plan, and (2) at least 85% of the 9 employees are enrolled and the rehabilitation facility remits 10 the entire cost of providing coverage to those employees. 11 Employees of a participating rehabilitation facility who are 12 not enrolled due to coverage under another group health 13 policy or plan may enroll in the event of a qualifying change 14 in status, special enrollment, special circumstance as 15 defined by the Director, or during the annual Benefit Choice 16 Period. A participating rehabilitation facility may also 17 elect to cover its annuitants. Dependent coverage shall be 18 offered on an optional basis, with the costs paid by the 19 rehabilitation facility, its employees, or some combination 20 of the 2 as determined by the rehabilitation facility. The 21 rehabilitation facility shall be responsible for timely 22 collection and transmission of dependent premiums. 23 The Director shall annually determine quarterly rates of 24 payment, 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 rehabilitation 31 facility in age, sex, geographic location or other 32 relevant demographic variables, plus an amount sufficient 33 to pay for the additional administrative costs of 34 providing coverage to employees of the rehabilitation -24- LRB093 08085 JLS 08286 b 1 facility 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 rehabilitation 5 facility. 6 Monthly payments by the rehabilitation facility or its 7 employees for group health benefits shall be deposited in the 8 Local Government Health Insurance Reserve Fund. 9 (k) Any domestic violence shelter or service within the 10 State of Illinois may apply to the Director to have its 11 employees, annuitants, and their dependents provided group 12 health coverage under this Act on a non-insured basis. To 13 participate, a domestic violence shelter or service must 14 agree to enroll all of its employees and pay the entire cost 15 of providing such coverage for its employees. A 16 participating domestic violence shelter may also elect to 17 cover its annuitants. Dependent coverage shall be offered on 18 an optional basis, with the costs paid by the domestic 19 violence shelter or service, its employees, or some 20 combination of the 2 as determined by the domestic violence 21 shelter or service. The domestic violence shelter or service 22 shall be responsible for timely collection and transmission 23 of dependent premiums. 24 The Director shall annually determine rates of payment, 25 subject to the following constraints: 26 (1) In the first year of coverage, the rates shall 27 be equal to the amount normally charged to State 28 employees for elected optional coverages or for enrolled 29 dependents coverages or other contributory coverages on 30 behalf of its employees, adjusted for differences between 31 State employees and employees of the domestic violence 32 shelter or service in age, sex, geographic location or 33 other relevant demographic variables, plus an amount 34 sufficient to pay for the additional administrative costs -25- LRB093 08085 JLS 08286 b 1 of providing coverage to employees of the domestic 2 violence shelter or service and their dependents. 3 (2) In subsequent years, a further adjustment shall 4 be made to reflect the actual prior years' claims 5 experience of the employees of the domestic violence 6 shelter or service. 7 Monthly payments by the domestic violence shelter or 8 service or its employees for group health insurance shall be 9 deposited in the Local Government Health Insurance Reserve 10 Fund. 11 (k-5) Any qualified small business or self-employed 12 person within the State of Illinois may apply to the Director 13 to have its employees, annuitants, and their dependents 14 provided group health coverage under this Act on a 15 non-insured basis. To participate, a qualified small 16 business or self-employed person must agree to enroll all of 17 its employees and pay the entire cost of providing such 18 coverage for its employees. A participating qualified small 19 business or self-employed person may also elect to cover its 20 annuitants. Dependent coverage shall be offered on an 21 optional basis, with employees, or some combination of the 2 22 as determined by the qualified small business or 23 self-employed person. The qualified small business or 24 self-employed person shall be responsible for timely 25 collection and transmission of dependent premiums. 26 The Director shall annually determine rates of payment, 27 subject to the following constraints: 28 (1) In the first year of coverage, the rates shall 29 be equal to the amount normally charged to State 30 employees for elected optional coverages or for enrolled 31 dependents coverages or other contributory coverages on 32 behalf of its employees, adjusted for differences between 33 State employees and employees of the qualified small 34 business or self-employed person in age, sex, geographic -26- LRB093 08085 JLS 08286 b 1 location or other relevant demographic variables, plus an 2 amount sufficient to pay for the additional 3 administrative costs of providing coverage to employees 4 of the qualified small business or self-employed person 5 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 qualified small 9 business or self-employed person. 10 Monthly payments by the qualified small business or 11 self-employed person for group health insurance shall be 12 deposited into the Small Employers Health Insurance Reserve 13 Fund. The Small Employers Health Insurance Reserve Fund 14 shall be a continuing fund not subject to fiscal year 15 limitations. All expenditures from this fund shall be used 16 for payments for health care benefits for self-employed 17 persons and employees of qualified small businesses and their 18 annuitants and dependents and to reimburse the Department or 19 its administrative service organization for all expenses 20 incurred in the administration of benefits. No other State 21 funds may be used for these purposes. 22 (l) A public community college or entity organized 23 pursuant to the Public Community College Act may apply to the 24 Director initially to have only annuitants not covered prior 25 to July 1, 1992 by the district's health plan provided health 26 coverage under this Act on a non-insured basis. The 27 community college must execute a 2-year contract to 28 participate in the Local Government Health Plan. Any 29 annuitant may enroll in the event of a qualifying change in 30 status, special enrollment, special circumstance as defined 31 by the Director, or during the annual Benefit Choice Period. 32 The Director shall annually determine monthly rates of 33 payment subject to the following constraints: for those 34 community colleges with annuitants only enrolled, first year -27- LRB093 08085 JLS 08286 b 1 rates shall be equal to the average cost to cover claims for 2 a State member adjusted for demographics, Medicare 3 participation, and other factors; and in the second year, a 4 further adjustment of rates shall be made to reflect the 5 actual first year's claims experience of the covered 6 annuitants. 7 (l-5) The provisions of subsection (l) become 8 inoperative on July 1, 1999. 9 (m) The Director shall adopt any rules deemed necessary 10 for implementation of this amendatory Act of 1989 (Public Act 11 86-978). 12 (Source: P.A. 91-280, eff. 7-23-99; 91-311; eff. 7-29-99; 13 91-357, eff. 7-29-99; 91-390, eff. 7-30-99; 91-395, eff. 14 7-30-99; 91-617, eff. 8-19-99; 92-16, eff. 6-28-01; revised 15 2-25-02.) 16 (5 ILCS 375/13.2) (from Ch. 127, par. 533.2) 17 Sec. 13.2. Insurance reserve funds; investments. All 18 amounts held in the Health Insurance Reserve Fund, the Group 19 Insurance Premium Fund, the Small Employers Health Insurance 20 Reserve Fund, and the Local Government Health Insurance 21 Reserve Fund shall be invested, at interest, by the State 22 Treasurer. The investments shall be subject to terms, 23 conditions, and limitations imposed by the laws of Illinois 24 on State funds. All income derived from the investments 25 shall accrue and be deposited to the respective funds no less 26 frequently than quarterly. The Health Insurance Reserve 27 Fund, the Small Employers Health Insurance Reserve Fund, and 28 the Local Government Health Insurance Reserve Fund shall be 29 administered by the Director. 30 (Source: P.A. 91-390, eff. 7-30-99.) 31 (5 ILCS 375/15) (from Ch. 127, par. 535) 32 Sec. 15. Administration; rules; audit; review. -28- LRB093 08085 JLS 08286 b 1 (a) The Director shall administer this Act and shall 2 prescribe such rules and regulations as are necessary to give 3 full effect to the purposes of this Act. 4 (b) These rules may fix reasonable standards for the 5 group life and group health programs and other benefit 6 programs offered under this Act, and for the contractors 7 providing them. 8 (c) These rules shall specify that covered and optional 9 medical services of the program are services provided within 10 the scope of their licenses by practitioners in all 11 categories licensed under the Medical Practice Act of 1987 12 and shall provide that all eligible persons be fully informed 13 of this specification. 14 (d) These rules shall establish eligibility requirements 15 for members and dependents as may be necessary to supplement 16 or clarify requirements contained in this Act. 17 (e) Each affected department of the State, the State 18 Universities Retirement System, the Teachers' Retirement 19 System, and each qualified local government, rehabilitation 20 facility,ordomestic violence shelter or service, small 21 business, or self-employed person shall keep such records, 22 make such certifications, and furnish the Director such 23 information as may be necessary for the administration of 24 this Act, including information concerning number and total 25 amounts of payroll of employees of the department who are 26 paid from trust funds or federal funds. 27 (f) Each member, each community college benefit 28 recipient to whom this Act applies, and each TRS benefit 29 recipient to whom this Act applies shall furnish the 30 Director, in such form as may be required, any information 31 that may be necessary to enroll such member or benefit 32 recipient and, if applicable, his or her dependents or 33 dependent beneficiaries under the programs or plan, including 34 such data as may be required to allow the Director to -29- LRB093 08085 JLS 08286 b 1 accumulate statistics on data normally considered in 2 actuarial studies of employee groups. Information about 3 community college benefit recipients and community college 4 dependent beneficiaries shall be furnished through the State 5 Universities Retirement System. Information about TRS 6 benefit recipients and TRS dependent beneficiaries shall be 7 furnished through the Teachers' Retirement System. 8 (g) There shall be audits and reports on the programs 9 authorized and established by this Act prepared by the 10 Director with the assistance of a qualified, independent 11 accounting firm. The reports shall provide information on 12 the experience, and administrative effectiveness and adequacy 13 of the program including, when applicable, recommendations on 14 up-grading of benefits and improvement of the program. 15 (h) Any final order, decision or other determination 16 made, issued or executed by the Director under the provisions 17 of this Act whereby any contractor or person is aggrieved 18 shall be subject to review in accordance with the provisions 19 of the Administrative Review Law and all amendments and 20 modifications thereof, and the rules adopted pursuant 21 thereto, shall apply to and govern all proceedings for the 22 judicial review of final administrative decisions of the 23 Director. 24 (Source: P.A. 90-497, eff. 8-18-97; 91-390, eff. 7-30-99.) 25 Section 10. The State Finance Act is amended by changing 26 Section 25 as follows: 27 (30 ILCS 105/25) (from Ch. 127, par. 161) 28 Sec. 25. Fiscal year limitations. 29 (a) All appropriations shall be available for 30 expenditure for the fiscal year or for a lesser period if the 31 Act making that appropriation so specifies. A deficiency or 32 emergency appropriation shall be available for expenditure -30- LRB093 08085 JLS 08286 b 1 only through June 30 of the year when the Act making that 2 appropriation is enacted unless that Act otherwise provides. 3 (b) Outstanding liabilities as of June 30, payable from 4 appropriations which have otherwise expired, may be paid out 5 of the expiring appropriations during the 2-month period 6 ending at the close of business on August 31. Any service 7 involving professional or artistic skills or any personal 8 services by an employee whose compensation is subject to 9 income tax withholding must be performed as of June 30 of the 10 fiscal year in order to be considered an "outstanding 11 liability as of June 30" that is thereby eligible for payment 12 out of the expiring appropriation. 13 However, payment of tuition reimbursement claims under 14 Section 14-7.03 or 18-3 of the School Code may be made by the 15 State Board of Education from its appropriations for those 16 respective purposes for any fiscal year, even though the 17 claims reimbursed by the payment may be claims attributable 18 to a prior fiscal year, and payments may be made at the 19 direction of the State Superintendent of Education from the 20 fund from which the appropriation is made without regard to 21 any fiscal year limitations. 22 Medical payments may be made by the Department of 23 Veterans' Affairs from its appropriations for those purposes 24 for any fiscal year, without regard to the fact that the 25 medical services being compensated for by such payment may 26 have been rendered in a prior fiscal year. 27 Medical payments may be made by the Department of Public 28 Aid and child care payments may be made by the Department of 29 Human Services (as successor to the Department of Public Aid) 30 from appropriations for those purposes for any fiscal year, 31 without regard to the fact that the medical or child care 32 services being compensated for by such payment may have been 33 rendered in a prior fiscal year; and payments may be made at 34 the direction of the Department of Central Management -31- LRB093 08085 JLS 08286 b 1 Services from the Health Insurance Reserve Fund, the Small 2 Employers Health Insurance Reserve Fund, and the Local 3 Government Health Insurance Reserve Fund without regard to 4 any fiscal year limitations. 5 Additionally, payments may be made by the Department of 6 Human Services from its appropriations, or any other State 7 agency from its appropriations with the approval of the 8 Department of Human Services, from the Immigration Reform and 9 Control Fund for purposes authorized pursuant to the 10 Immigration Reform and Control Act of 1986, without regard to 11 any fiscal year limitations. 12 Further, with respect to costs incurred in fiscal years 13 2002 and 2003 only, payments may be made by the State 14 Treasurer from its appropriations from the Capital Litigation 15 Trust Fund without regard to any fiscal year limitations. 16 (c) Further, payments may be made by the Department of 17 Public Health and the Department of Human Services (acting as 18 successor to the Department of Public Health under the 19 Department of Human Services Act) from their respective 20 appropriations for grants for medical care to or on behalf of 21 persons suffering from chronic renal disease, persons 22 suffering from hemophilia, rape victims, and premature and 23 high-mortality risk infants and their mothers and for grants 24 for supplemental food supplies provided under the United 25 States Department of Agriculture Women, Infants and Children 26 Nutrition Program, for any fiscal year without regard to the 27 fact that the services being compensated for by such payment 28 may have been rendered in a prior fiscal year. 29 (d) The Department of Public Health and the Department 30 of Human Services (acting as successor to the Department of 31 Public Health under the Department of Human Services Act) 32 shall each annually submit to the State Comptroller, Senate 33 President, Senate Minority Leader, Speaker of the House, 34 House Minority Leader, and the respective Chairmen and -32- LRB093 08085 JLS 08286 b 1 Minority Spokesmen of the Appropriations Committees of the 2 Senate and the House, on or before December 31, a report of 3 fiscal year funds used to pay for services provided in any 4 prior fiscal year. This report shall document by program or 5 service category those expenditures from the most recently 6 completed fiscal year used to pay for services provided in 7 prior fiscal years. 8 (e) The Department of Public Aid and the Department of 9 Human Services (acting as successor to the Department of 10 Public Aid) shall each annually submit to the State 11 Comptroller, Senate President, Senate Minority Leader, 12 Speaker of the House, House Minority Leader, the respective 13 Chairmen and Minority Spokesmen of the Appropriations 14 Committees of the Senate and the House, on or before November 15 30, a report that shall document by program or service 16 category those expenditures from the most recently completed 17 fiscal year used to pay for (i) services provided in prior 18 fiscal years and (ii) services for which claims were received 19 in prior fiscal years. 20 (f) The Department of Human Services (as successor to 21 the Department of Public Aid) shall annually submit to the 22 State Comptroller, Senate President, Senate Minority Leader, 23 Speaker of the House, House Minority Leader, and the 24 respective Chairmen and Minority Spokesmen of the 25 Appropriations Committees of the Senate and the House, on or 26 before December 31, a report of fiscal year funds used to pay 27 for services (other than medical care) provided in any prior 28 fiscal year. This report shall document by program or 29 service category those expenditures from the most recently 30 completed fiscal year used to pay for services provided in 31 prior fiscal years. 32 (g) In addition, each annual report required to be 33 submitted by the Department of Public Aid under subsection 34 (e) shall include the following information with respect to -33- LRB093 08085 JLS 08286 b 1 the State's Medicaid program: 2 (1) Explanations of the exact causes of the 3 variance between the previous year's estimated and actual 4 liabilities. 5 (2) Factors affecting the Department of Public 6 Aid's liabilities, including but not limited to numbers 7 of aid recipients, levels of medical service utilization 8 by aid recipients, and inflation in the cost of medical 9 services. 10 (3) The results of the Department's efforts to 11 combat fraud and abuse. 12 (h) As provided in Section 4 of the General Assembly 13 Compensation Act, any utility bill for service provided to a 14 General Assembly member's district office for a period 15 including portions of 2 consecutive fiscal years may be paid 16 from funds appropriated for such expenditure in either fiscal 17 year. 18 (i) An agency which administers a fund classified by the 19 Comptroller as an internal service fund may issue rules for: 20 (1) billing user agencies in advance based on 21 estimated charges for goods or services; 22 (2) issuing credits during the subsequent fiscal 23 year for all user agency payments received during the 24 prior fiscal year which were in excess of the final 25 amounts owed by the user agency for that period; and 26 (3) issuing catch-up billings to user agencies 27 during the subsequent fiscal year for amounts remaining 28 due when payments received from the user agency during 29 the prior fiscal year were less than the total amount 30 owed for that period. 31 User agencies are authorized to reimburse internal service 32 funds for catch-up billings by vouchers drawn against their 33 respective appropriations for the fiscal year in which the 34 catch-up billing was issued. -34- LRB093 08085 JLS 08286 b 1 (Source: P.A. 92-885, eff. 1-13-03.) 2 Section 99. Effective date. This Act takes effect on 3 January 1, 2004.