Governor signs bill reforming retiree health premiums


Governor Quinn today signed Senate Bill 1313, a bill designed to save approximately $200 million per year for the state’s public employee health insurance systems. More specific savings will be identified after labor negotiations and reviews by the Joint Committee on Administrative Rules establish retiree premiums based on means testing and length of service.

Sponsored by Assistant Majority Leader Jeff Schoenberg, SB1313 will allow the state to continue to provide coverage for retirees as it makes the coverage more affordable for taxpayers.

According to the Governor’s office, no other state offers free health insurance to 20+ year retirees. Some states provide little or no subsidy toward retirees’ premiums, providing only access to the insurance. Access to quality health coverage will continue for Illinois retirees but the 90% of current retirees who are not currently contributing anything toward their premium will now pay a portion based on their income.

Read more from the Governor’s news release

Earlier articles on this topic published on our website:

Friday, 11 May 2012

Schoenberg’s Retiree Health Coverage Reforms Pass Senate
Governor to sign changes aimed at securing affordable, quality health care for public retirees

Assistant Majority Leader Jeff Schoenberg (D-Evanston) today secured passage in the Illinois Senate of a plan to dramatically reform the way the state pays for its retirees’ health insurance premiums. Senate Bill 1313 will give Central Management Services the authority to create through collective bargaining a sliding scale for retirees to contribute toward their health insurance premiums based on ability to pay.

“The current situation is both unaffordable and unsustainable,” said Schoenberg, the bill’s chief sponsor in the Senate and a long-time advocate of means-tested retiree health benefits. “If we don’t address this issue, not only will unfunded liabilities grow, but those who are receiving insurance will likely see their co-payments rise dramatically or the richness of their benefits package be diminished, or both.” Read the rest of this story...

Thursday, 10 May 2012

Means testing proposal for retiree health care benefits passes Senate

Retired state and public university employees receiving free health care coverage could soon be contributing to their health plans under legislation passed today by the Illinois Senate. The current system grants retirees who have accumulated 20 years of service free health insurance coverage, as the state picks up 5% of health care costs per year of service. Every year, Illinois pays nearly $900 million in costs associated with retiree health care benefits. Read the rest of this story...