The Idaho School Benefit Trust, which provides health insurance to over 100 school districts and charter schools, has exhausted its reserve funds and is facing a shortfall of over $10 million.

Background

The trust’s fund balance had been dwindling in recent years, from $22.5 million in 2020 to $2.1 million in 2024. Despite efforts to address the issue, the trust was unable to anticipate the high utilization of medical claims in the 2025-26 benefit year, which ends August 31.

Blue Cross of Idaho, the trust’s third-party benefits administrator, presented three payment options to the trust’s leaders, all of which would require additional monthly payments from the trust’s members. The trustees are considering two of these options, which include an additional cost of $26.22 per member per month until the shortfall is resolved.

Response

State leaders are aware of the situation but have signaled that it is up to the trust to find a solution. The Idaho Department of Insurance is overseeing the situation, but the department’s public information specialist, Julie Robinson, stated that the situation is an “ongoing regulatory matter” and the department is unable to comment at this time.

Some lawmakers, such as Sen. Janie Ward-Engelking, have suggested that the state could help by tapping into the Public Education Stabilization Fund, a rainy-day fund, to cover the shortfall. However, Gov. Brad Little’s office has emphasized that employee insurance is driven by local decisions and that the trust is a private, independent, self-insured organization that sets its own premium rates and selects its health benefits.

Original reporting: Idaho Education News — read the source article.