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The Idaho School Benefit Trust on Thursday afternoon notified member school districts and charters that the trust needs an additional $13 million to pay claims for the current benefit year, and the first payment is due at the end of next month.
The trust told the more than 100 employers — which includes the Lake Pend Oreille and West Bonner County school districts — who participate in the insurance pool to choose a payment option by Sept. 10 — and either pay a lump sum or make a first monthly payment by Sept. 30.
“I’m guessing most of these districts, there’s no way they’ve got that kind of money sitting around in a reserve account to just make a payment like that,” Coeur d’Alene Superintendent Shon Hocker told EdNews in an interview last week.
Debbie Hainke, benefits manager for the trust, in the Thursday email to members said trustees have approved an increase to the contribution amount for the 2025-26 benefit year, which ends Aug. 31. The email cited Idaho code and the participation agreements that school leaders signed.
“Responsibility for funding any plan shortfall rests with both the Trust and its participating districts,” Hainke wrote.
The email answers several questions that school leaders have been waiting for, but Hainke said she understands it may raise more questions. Members can expect more details “in the near future” regarding the amount of the lump sum or monthly payment each district and charter is facing.
The lump sum is equal to $715 per employee and dependent, and the monthly payment plan is $22 per employee and dependent.
The Idaho School Benefit Trust is a self-funded insurance pool that 108 school districts, charter schools and education organizations use to pay health insurance claims through third party administrator Blue Cross of Idaho. Hainke on July 14 first informed members that the trust had exhausted its reserves paying “extremely high” claims over the past year, and that the members were responsible for covering the shortfall.
After Thursday’s email, members know the extent of the shortfall: $13 million.
“Without this funding, each district or employee could be directly responsible for a portion of these claims,” Hainke wrote.
The trust, Hainke wrote, has worked closely with the Idaho Department of Insurance and Blue Cross of Idaho to “identify solutions that help minimize the cash flow impact on participating school districts and to provide payment options to satisfy your funding obligation.”
Most school district trustees passed their budgets in June for the current fiscal year, which began July 1. Now districts will have to find money to cover the $13 million shortfall.
The Idaho School Benefit Trust is switching to a fully insured plan with Blue Cross for the upcoming benefit year, which begins Sept. 1.
