WEA Trust seeks court validation of fund payouts

MILWAUKEE (AP) — A nonprofit health insurer wants a federal court to validate its action denying federal funds to Wisconsin school districts that dropped the insurance firm.

The issue stems from funds from the federal Early Retiree Reinsurance Program. A Milwaukee Journal Sentinel report says WEA Trust applied for and received $18 million from a federal program created to offset insurance costs for early retirees.

WEA Trust only shared the money with districts that still participated in its insurance program.

At least 14 school districts that dropped WEA Trust are considering legal action to recover what they say is their share of money.

The insurance company filed its own preemptive lawsuit Friday. Spokesman Steve Lyons says the firm wants a federal court to find that its actions were proper.