Bill Text: IL HB0450 | 2011-2012 | 97th General Assembly | Amended

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Bill Title: Amends the Legislative Commission Reorganization Act of 1984. Makes a technical change in a Section concerning the short title.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Failed) 2013-01-08 - Session Sine Die [HB0450 Detail]

Download: Illinois-2011-HB0450-Amended.html

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Rep. Patrick J. Verschoore

Filed: 4/12/2011

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AMENDMENT TO HOUSE BILL 450
AMENDMENT NO. ______. Amend House Bill 450, AS AMENDED, by
replacing everything after the enacting clause with the
following:
"Section 5. The State Employees Group Insurance Act of 1971
is amended by changing Sections 7.1 and 8 as follows:
(5 ILCS 375/7.1) (from Ch. 127, par. 527.1)
Sec. 7.1. Any benefit received by an employee under this
Act pursuant to a collective bargaining agreement may be
extended by the Director to employees whose wages, hours and
other conditions of employment with the State are not subject
to a collective bargaining agreement. In addition, if any
benefit, except a benefit under subsection (d-6) of Section 8
of this Act, is offered by the Department of Central Management
Services to employees who are not members of a recognized
bargaining unit, then that benefit shall also be offered to all

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bargaining unit members through their certified exclusive
representative.
(Source: P.A. 85-848.)
(5 ILCS 375/8) (from Ch. 127, par. 528)
Sec. 8. Eligibility.
(a) Each member eligible under the provisions of this Act
and any rules and regulations promulgated and adopted hereunder
by the Director shall become immediately eligible and covered
for all benefits available under the programs. Members electing
coverage for eligible dependents shall have the coverage
effective immediately, provided that the election is properly
filed in accordance with required filing dates and procedures
specified by the Director.
(1) Every member originally eligible to elect
dependent coverage, but not electing it during the original
eligibility period, may subsequently obtain dependent
coverage only in the event of a qualifying change in
status, special enrollment, special circumstance as
defined by the Director, or during the annual Benefit
Choice Period.
(2) Members described above being transferred from
previous coverage towards which the State has been
contributing shall be transferred regardless of
preexisting conditions, waiting periods, or other
requirements that might jeopardize claim payments to which

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they would otherwise have been entitled.
(3) Eligible and covered members that are eligible for
coverage as dependents except for the fact of being members
shall be transferred to, and covered under, dependent
status regardless of preexisting conditions, waiting
periods, or other requirements that might jeopardize claim
payments to which they would otherwise have been entitled
upon cessation of member status and the election of
dependent coverage by a member eligible to elect that
coverage.
(b) New employees shall be immediately insured for the
basic group life insurance and covered by the program of health
benefits on the first day of active State service. Optional
life insurance coverage one to 4 times the basic amount, if
elected during the relevant eligibility period, will become
effective on the date of employment. Optional life insurance
coverage exceeding 4 times the basic amount and all life
insurance amounts applied for after the eligibility period will
be effective, subject to satisfactory evidence of insurability
when applicable, or other necessary qualifications, pursuant
to the requirements of the applicable benefit program, unless
there is a change in status that would confer new eligibility
for change of enrollment under rules established supplementing
this Act, in which event application must be made within the
new eligibility period.
(c) As to the group health benefits program contracted to

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begin or continue after June 30, 1973, each retired employee
shall become immediately eligible and covered for all benefits
available under that program. Retired employees may elect
coverage for eligible dependents and shall have the coverage
effective immediately, provided that the election is properly
filed in accordance with required filing dates and procedures
specified by the Director.
Except as otherwise provided in this Act, where husband and
wife are both eligible members, each shall be enrolled as a
member and coverage on their eligible dependent children, if
any, may be under the enrollment and election of either.
Regardless of other provisions herein regarding late
enrollment or other qualifications, as appropriate, the
Director may periodically authorize open enrollment periods
for each of the benefit programs at which time each member may
elect enrollment or change of enrollment without regard to age,
sex, health, or other qualification under the conditions as may
be prescribed in rules and regulations supplementing this Act.
Special open enrollment periods may be declared by the Director
for certain members only when special circumstances occur that
affect only those members.
(d) Beginning with fiscal year 2003 and for all subsequent
years, eligible members may elect not to participate in the
program of health benefits as defined in this Act. The election
must be made during the annual benefit choice period, subject
to the conditions in this subsection.

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(1) Members must furnish proof of health benefit
coverage, either comprehensive major medical coverage or
comprehensive managed care plan, from a source other than
the Department of Central Management Services in order to
elect not to participate in the program.
(2) Members may re-enroll in the Department of Central
Management Services program of health benefits upon
showing a qualifying change in status, as defined in the
U.S. Internal Revenue Code, without evidence of
insurability and with no limitations on coverage for
pre-existing conditions, provided that there was not a
break in coverage of more than 63 days.
(3) Members may also re-enroll in the program of health
benefits during any annual benefit choice period, without
evidence of insurability.
(4) Members who elect not to participate in the program
of health benefits shall be furnished a written explanation
of the requirements and limitations for the election not to
participate in the program and for re-enrolling in the
program. The explanation shall also be included in the
annual benefit choice options booklets furnished to
members.
(d-5) Beginning July 1, 2005, the Director may establish a
program of financial incentives to encourage annuitants
receiving a retirement annuity from the State Employees
Retirement System, but who are not eligible for benefits under

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the federal Medicare health insurance program (Title XVIII of
the Social Security Act, as added by Public Law 89-97) to elect
not to participate in the program of health benefits provided
under this Act. The election by an annuitant not to participate
under this program must be made in accordance with the
requirements set forth under subsection (d). The financial
incentives provided to these annuitants under the program may
not exceed $150 per month for each annuitant electing not to
participate in the program of health benefits provided under
this Act.
(d-6) Beginning July 1, 2012, the Director shall establish
a program of financial incentives to encourage current General
Assembly officials and annuitants of the General Assembly
Retirement System to elect not to participate in the program of
health benefits provided under this Act. The financial
incentives provided to these current General Assembly
officials and annuitants under the program may not exceed 60%
of the average member-only cost of the most affordable
State-offered health benefit (as determined by the Director)
for which the official or annuitant qualifies and are not
applicable when the official or annuitant is responsible for
100% of that cost. An official or annuitant who elects to opt
out of the program of financial incentives offered pursuant to
this subsection (d-6) is ineligible to enroll as a member or
dependent in any program of health benefits provided under this
Act.

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(e) Notwithstanding any other provision of this Act or the
rules adopted under this Act, if a person participating in the
program of health benefits as the dependent spouse of an
eligible member becomes an annuitant, the person may elect, at
the time of becoming an annuitant or during any subsequent
annual benefit choice period, to continue participation as a
dependent rather than as an eligible member for as long as the
person continues to be an eligible dependent.
An eligible member who has elected to participate as a
dependent may re-enroll in the program of health benefits as an
eligible member (i) during any subsequent annual benefit choice
period or (ii) upon showing a qualifying change in status, as
defined in the U.S. Internal Revenue Code, without evidence of
insurability and with no limitations on coverage for
pre-existing conditions.
A person who elects to participate in the program of health
benefits as a dependent rather than as an eligible member shall
be furnished a written explanation of the consequences of
electing to participate as a dependent and the conditions and
procedures for re-enrolling as an eligible member. The
explanation shall also be included in the annual benefit choice
options booklet furnished to members.
(Source: P.A. 94-95, eff. 7-1-05; 94-109, eff. 7-1-05; 95-331,
eff. 8-21-07.)
Section 99. Effective date. This Act takes effect upon

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becoming law.".