By Victor Skinner
EAGnews.org

MADISON, Wis. – Competition among  various companies for school employee health insurance has been good for Wisconsin taxpayers, but bad for the teachers union-affiliated WEA Trust.
    
WEA Trust, an insurance company founded by the Wisconsin Education Association Council – the statewide teachers union – has witnessed a $70 million drop in revenues since Gov. Scott Walker passed legislation last year that makes the insurance market more competitive for public schools.

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We believe the lost revenue is a clear sign the governor’s reforms are working as intended. It’s also compelling evidence that many school districts have been waiting for an opportunity to kick WEA Trust’s overpriced insurance product to the curb.

Last year, Walker’s Act 10 legislation eliminated collective bargaining for public school unions, with the exception of negotiations over salary. The move allowed school districts to seek competitive bids for health insurance, something that was nearly impossible under the old system.

In the past, WEAC negotiators would go to the collective bargaining table demanding WEA Trust coverage, despite the burden its high cost put on school budgets.

Since Act 10 became law, 52 school districts have switched from WEA Trust insurance to less expensive carriers and saved more than $30 million, according to a recent Associated Press report.

“For whatever reason, there’s a much more competitive environment now,” Muskego-Norway Superintendent Joe Schroeder told the newspaper, adding that his district saved about $2 million by switching from WEA Trust to United Healthcare.

There’s really no mystery to the welcome changes.

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Act 10 changed the game by removing the identity of the insurance carrier from collective bargaining discussions, which has freed school officials to contract with the most competitive company, rather than the union’s favorite.

That means WEA Trust is suddenly losing a lot of money, but schools and taxpayers are saving a lot at the same time.

The original news report is available at theNorthwestern.com.