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School districts could recover $14 million in settlement

December 3, 2013

Indiana school districts which invested in a failed union health insurance plan will be getting back roughly half of the money they lost under a settlement reached between the state and Indiana's largest teachers union.

Secretary of State Connie Lawson announced Tuesday that 27 school districts would split $14 million if they approve the settlement. The settlement ends four years of legal wrangling between the state and the teachers union.

The Indiana State Teachers Association and National Education Association agreed in August to pay school districts which had enrolled in the union's now-defunct health insurance plan.

State officials have estimated the union lost $27 million amid the 2009 collapse of the health plan that it had sold to 27 school districts around the state.

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