District denied money when it opted out of WEA insurance
By Jennifer Eisenbart
Staff writer
The Burlington Area School District Committee of the Whole recommended Monday night joining a lawsuit to try and regain money from the Wisconsin Education Association Trust.
BASD is one of about 40 districts that opted out of the WEA Trust insurance this year, choosing instead to pursue cheaper health insurance through a private provider. When the district did so, however, WEA refused to turn over about $61,800 to the district from the federally funded ERRP – Early Retiree Reinsurance Program.
That program was started through the federal health care reform to promote health coverage for early retirees, and federal dollars were set aside for it.
However, when the WEA Trust applied for the money and received it, it came with the specification that it be used solely for reducing costs – with 100 percent of the money issued through premium credits.
BASD was set to receive those credits from the trust before switching health insurance. According to BASD Business Administrator Peter Smet, the district was then denied the funds by the WEA Trust.
Smet said Monday night that the districts involved were advised by the Wisconsin Association of School Boards (WASB) to seek legal counsel from Foley and Lardner, LLP, which has now agreed to take on the case on a contingency basis.
If the district wins, one-third of the money won would go to the law firm. The district will also be responsible for its part of fees for things such as court costs, copies, phone costs, etc.
Aside from some misgivings from a few members of the board regarding the possibility of hidden fees, the committee voted unanimously to enter into the lawsuit.
“I don’t know that there’s a downside to pursuing this,” Smet said.
-
-
-
-
-