A health insurance company affiliated with the state's largest teachers union is refusing to release hundreds of thousands of dollars in federal money to school districts that recently dropped the company in favor of less expensive providers.
School officials argue that WEA Trust applied for the federal money during the 2010-'11 fiscal year, which ended Thursday, so the money should be credited to the same year. WEA Trust officials contend the money should be carried forward as 2011-'12 insurance premium credits.
WEA Trust says 'Nope. It's ours.'
....WEA Trust followed federal rules that apply to the early retiree insurance program, said WEA Trust spokesman Steve Lyons.
"Federal law prohibits the dollars to go with school districts that leave the plan," Lyons said. "It's not school district money. It belongs to plan participants."
WEA Trust did not provide federal program documentation to support its position. But company officials said distributing the money to nonparticipating school districts now could prompt penalties.
"Trust us. We know what it says. It's our money!!"
Why not trust WEA? After all, they're kind, and benevolent, and a non-profit, and ........The Menomonee Falls School District is losing more than $100,000 in federal money because its teachers union agreed last month to a switch from WEA Trust to Humana. But the provider change otherwise will save the district $1.3 million in the new fiscal year, according to school officials.
See? WEA only overcharged by a $million and change. What the Hell are your people so all-fired excited about?