Wisconsin Education Association Trust tries to adapt to changes in state law

Guy Boulton:

Politicians vilifying health insurance companies isn't uncommon. But WEA Trust has the distinction of being attacked not by liberal Democrats but by conservative Republicans.

WEA Trust's core business is selling health insurance to school districts. And the company - an outgrowth of the state's largest teachers union but an independent, nonprofit company - became a frequent target in the clash over teachers' benefits and collective bargaining.

Critics contended that WEA Trust's rates were higher than its competitors and that school districts could save money by switching to other health insurers if benefits were not subject to collective bargaining.

WEA Trust countered that its rates were competitive and that school districts spent more on health insurance than private employers because the districts provided better benefits as part of teachers' compensation.

The coming years will determine who is right. So far, no clear answer has emerged.

WEA Trust, one of the state's largest health insurers, has lost about a third of its business with school districts now that state law excludes health benefits from union contracts. But it also has won some new customers and become a significant competitor in the market to insure state employees.

Posted by Jim Zellmer at February 13, 2012 1:43 AM
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