Date Published: May 11, 2012
Now that State Health Insurance SB1313 HAM 8 and 9 has passed the Senate there is much work for us to do as it moves to the Governor's Desk. The Governor has stated that he will sign the bill with an effective date of July 1, 2012.
Now that State Health Insurance SB1313 HAM 8 and 9 has passed the Senate there is much work for us to do as it moves to the Governor's Desk. The Governor has stated that he will sign the bill with an effective date of July 1, 2012.
The bill itself is still quite ambiguous. Not read into the Senate
testimony was the Memorandum dated May
9, 2012 to Representative Cross from CMS which stated the following:
- Senate Bill 1313 allows the Director of
CMS to set the premiums that are paid by retirees in the Group Health
Insurance Program every year in order to ensure we will be able to continue
providing quality health care for our retired employees.
- The proposed retiree contributions will
pay a percentage of their healthcare costs on a sliding scale. The scale is based on (1) length of
service, and (2) ability to pay.
- The percent of cost the retiree will pay
will also be based on his or her pension level. Pension amounts will be broken up into
seven tiers; the higher the tier, the more the retiree will pay.
- Retirees who are eligible for Medicare
(generally 65 years old and above) cost the state substantially less than
those who are not on Medicare.
Since the contributions will be based on paying a percent of the
cost of care for the state, those retirees on Medicare will pay
significantly less than those (generally younger and still working) who
are not.
- Those who have already retired when this
plan goes into effect will pay based on their ability to pay, but will be
given service credit at the highest level.
However, regardless of the contribution amount determined under
those rules, the new plan contribution will not be less for any retiree
than the amount they contribute under the current policy.
Those people who signed the Irrevocable Election of both 1997 and 2004
are not included in this bill.
Those people who have the College Insurance Program (CIP) are not
included in this bill.
Those people who have the Teachers Insurance Program (TRIP) are not
included in this bill.
Today SUAA asked that the above talked about Memo be a part of the
Senate "record".
SUAA will write a letter to the Governor asking him to veto
SB1313. We urge our members to do the same.
The Governor's contact information is 312.814.2121 (voice); 217.782.6830
(voice); 312.814.5512 (fax);
217.524.4049 (fax); governor@illinois.gov is his email.
The bill was adopted under "Emergency Rules". These rules will be published quite soon in
the Illinois Register. SUAA will be responsible for analyzing as
soon as they appear. These rules will be in effect for the next 150 days and
cannot be changed during that period. At
the same time those Rules are published,
Central Management Services (CMS) will also publish Rules for the period following the 150 days. Those Rules are subject to review by the
Joint Committee on Administrative Rules
(JCAR) and by any established organization.
It is possible for the 12 legislators
appointed as members, to cause Rules to be withdrawn or changed. We will have more about the process later.
It is SUAA's intent to bring forth legislation that protects those
without Medicare (especially those who
are now 65 and older). SB1313 had intent, but it was too vague. We want certainty.
We will continue to work with the Governor's staff, CMS and JCAR for
the next several days.
Pension Reform is likely to come to a head this next week as even more
important debates take place. Medicaid
is also taking serious presence. Major
cuts will be made in every area of State government as Speaker Madigan and Minority
Leader Cross try to balance the budget by making more monetary cuts than the Governor proposed
in his Budget presentation.
It is a tough year for even tougher decisions. If your legislator voted "no" for
SB1313 be sure to say thank you. If your legislator voted "yes" then
call to find out why. Please be
courteous when you call. The pension
reform bill is yet to come.
Please check out the SUAA website for additional information. There are related articles; legislation that is being watched and acted
on; how to find your legislator; archives of MiniBriefings; how to get to other
relevant websites, etc.
What Are You Doing to Protect your Future?
Join SUAA Now!
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