Federal health care funds are being held hostage by the Wisconsin Education Association Trust, a not-for-profit health insurance company created by the state’s largest teachers union.
The union trust is doing this in a bid to retain its dominant position as the state government’s largest health care insurance provider.
The funds in question derive from the much-maligned Early Retiree Reinsurance Program. Obamacare created ERRP as a taxpayer-funded subsidy intended to lower the cost of early retiree health care.
Instead, the Obama administration has used ERRP funds to give political payback to preferred special interest groups. Top ERRP recipients include the United Auto Workers ($206.8 million), state governments and government unions ($5 billion), and General Electric ($36.6 million). The WEA Trust received a total of $18 million.