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There is a need to summarize the significant past problems in dealing with WEAC (teachers union). Everyone knows that the DP supports wholeheartly the teachers union and gives away taxpayer money to them.
Here is a report from 2000 stating that WEAC controls 85% of the teacher’s health insurance without competition.
http://www.wpri.org/Reports/Volume13/Vol13no8.pdf page 20
The market for teachers’health insurance in Wisconsin is characterized by several traits. The health insurance is
determined through the collective bargaining process. The health insurance plans provided by the districts are rarely
put out to bid.37 The WEAInsurance Corporation, an entity affiliated with the state’s largest teachers union, provides
insurance coverage to roughly 85% of the districts. The peculiarities of this market suggest that competition between
insurers to write health insurance coverage is severely limited in most districts.
The current study reports the results of a statistical analysis that tested whether the WEAInsurance Corporation
charges more for health insurance coverage than other insurers. The analysis controlled for various factors believed
to be associated with the price of insurance coverage. The results suggest that the WEA Insurance Corporation does
charge more for its insurance product than other insurers. Possible explanations for this finding are that the WEA
Insurance Corporation provides more extensive insurance protection to those it insures, that it provides a higher level
of service to its customers, and that it derives market power from its affiliation with the WEA.
Reform that would foster competition in the market for teachers’ health insurance would serve the interests of
Wisconsin’s taxpayers and teachers. A model for reform is the health insurance pool for state employees. This is
administered by the Department of Employee Trust Funds (ETF), as is a similar pool available to Wisconsin public
employers. On a statewide basis, savings that could accrue to school districts through participation in the state
employee health insurance pool are estimated to be approximately $50,000,000 per year. If the savings were passed
to Wisconsin’s teachers, the average teacher in the state would receive a pay increase of $875.
Beyond belief! The tax payers have been screwed royally by these unions. Ban them. Ban them NOW!!!