IL SB2168

Transfers administration of health benefits for Teachers' Retirement System (TRS) benefit recipients and dependent beneficiaries from the TRS Board to the Department of Central Management Services beginning January 1, 1996.

Establishes the Teacher Health Insurance Security Fund as a non-appropriated trust fund held outside the State Treasury to finance health benefits for TRS recipients and dependents.

Maintains health benefit coverage levels similar to previous TRS programs and allows eligible persons enrolled at time of transfer to continue coverage without interruption or pre-existing condition limitations.

Sets premium payment structure with State funding up to 75% for managed care plans and 50-75% for major medical coverage depending on Medicare primary status and plan availability, with recipients paying remaining costs through annuity deductions.

Institutes annual premium increase caps ranging from no increase in fiscal year 1996 to maximum 105% increases annually beginning fiscal year 2008, with special provisions for disabled dependent children and Medicare-eligible beneficiaries.