Head of a trust that more than funds health insurance This week, 100 school districts and charter schools are considering three options for repaying money owed to Blue Cross of Idaho.
The Idaho School Benefit Trust has exhausted its reserve funds and met last week with Blue Cross, the the trust’s third-party services administrator, to address a deficit likely in excess of $10 million.
During Thursday’s meeting, Blue Cross representatives presented three payment options, according to documents obtained by Idaho Education News. All three options would require additional monthly payments from the trust’s members: public school districts and charter schools. Blue Cross asked the trust to make a decision by Wednesday.
However, there are still unanswered questions about this deficit, including which counties and city governments will be responsible for covering the deficit and how much they will owe.
Most of the people who oversee the trust fund and manage health benefits for thousands of public school employees and their families have remained silent since then EdNews first reported the deficit last week.
Debbie Hainke, the trust’s benefits manager, declined to be interviewed. However, she sent a written statement to EdNews saying: She “does her best to answer calls, emails and texts between meetings.”
Debbie Hainke, benefits manager at the Idaho School Benefit Trust
” data-large-file=” class=”wp-image-123125 size-thumbnail” alt=”” width=”200″ height=”200″ size=”auto, (max-width: 200px) 100vw, 200px”/>Debbie Hainke, Benefits Manager for the Idaho School Benefit Trust. (Photo: Idaho School Benefit Trust)
“This is a difficult situation for everyone,” Hainke wrote via email. “I ask for your professional courtesy so that we can process the matter and share information as it becomes available.”
Julie Robinson, public information specialist for the Idaho Department of Insurance, told EdNews on Tuesday that the situation is an “ongoing regulatory matter” and the department cannot comment at this time. Blue Cross of Idaho did not return a message seeking comment Tuesday.
On Friday, EdNews reported that two weeks after the Idaho School Benefit Trust asked school districts and foundations to renew their membership for the upcoming benefit year, Hainke sent a letter to members saying the trust had exhausted its reserves after a year of “extremely high” claims. Hainke told members they would be responsible for covering the deficit, estimated to be about a month’s worth of contributions.
In addition to the benefits manager, five trustees appointed by the Idaho School District Council oversee the Idaho School Benefit Trust. The Idaho Department of Insurance oversees the trust at the state level.
One trustee, Gaylen Smyer, answered questions from EdNews this week. Smyer confirmed that Blue Cross of Idaho has offered the trust three options for repayment and trustees will meet this week to make a final decision.
He said trustees are considering two of those options. Both include an additional cost of $26.22 per member per month, among other payments, until the deficit is resolved.
Blue Cross asked trustees to sign a letter of intent by Wednesday and then sign a final agreement by Aug. 5.
All school districts and charter members are expected to submit signed final agreements by August 14.
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“We thought we’d navigate our way through it.”
The trust has highlighted its low renewal rates compared to other benefit plans in recent years – an average of 6.1% between 2016 and 2026.
But the trust’s fund holdings shrank from $22.5 million to $2.1 million between 2020 and 2024.
Then medical claims for the 2025-26 benefit year, which ends Aug. 31, skyrocketed, and in mid-July Hainke told members the trust had run out of money.
Smyer said the trustees are aware that the trust’s fund holdings have been shrinking in recent years.
“We have seen the decline, yes, and we have taken steps to address it,” Smyer told EdNews on Tuesday. “But we didn’t expect the level of capacity utilization that would occur.”
EdNews asked Smyer why school districts weren’t notified of the financial shortfall sooner. Hainke’s letter came after districts and charters finalized their budgets for the upcoming school year.
“We thought we’d navigate our way through this,” Smyer said.
The extent of the deficit is unclear. The trust hasn’t given a specific figure other than to say it’s estimated to be about a month’s worth of contributions.
The trust raised an average of $161 million from its members between 2014 and 2024, according to financial information reviewed by EdNews. Average monthly revenue during this period was approximately $13.5 million.
Who are the trustees?
- Chairman Gordon Woolley, former Teton County superintendent
- Vice Chairman Chuck Kinsey, former Lakeland superintendent
- Treasurer Darren Uranga, CFO of Elevate Academy
- Trustee Gaylen Smyer, former Cassia County superintendent
- Trustee Wil Overgaard, former Weiser superintendent
Hainke’s letter to members in mid-July mentioned that there would be an “immediate financial impact” for participating schools.
Two superintendents said Monday they were told to “stand back” and wait for further communication from the foundation.
“I am not aware of the next steps to resolve the issue,” New Plymouth Superintendent Wade Wilson said Monday.
The Trust’s most recent publicly available tax document is from 2024 lists 113 member districts and statutes. However, it is not clear how many of these members would have to pay. Some only use the trust for dental or vision insurance, while others have since given up on the plan.
According to the trust’s website, it funded services for 13,310 employees and almost 11,000 dependents in 2024.
Can the state save the trust?
State leaders are aware of the situation but signaled this week that it is up to the foundation to find a solution.
While the state provides public schools with money to provide health insurance for their employees, local leaders decide their plans. The Idaho School Benefit Trust is an option that allows members to pool their money to cover claims. Public schools can also join the state plan — administered by Idaho-based Regence BlueShield — or pursue private plans.
Joining the state insurance plan involves a high subsidy. Wilson said when he worked for the Weiser School District, the state plan grant would have cost more than $400,000.
“We just didn’t see where we could get it,” he said.
In fiscal year 2023, joining costs were $3,465 per eligible employee, according to a School District Decision Guide through the Group Insurance Office website.
State Superintendent of Public Instruction Debbie Critchfield speaks to reporters at a news conference where Gov. Brad Little signed an AI education bill at the Idaho Capitol on March 26, 2026. (Kaeden Lincoln/IdahoEdNews)
” data-large-file=” class=”size-full wp-image-117303″ alt=”” width=”1920″ height=”1280″ size=”auto, (max-width: 1920px) 100vw, 1920px”/>Status Debbie Critchfield, superintendent of public instruction, speaks to reporters at a news conference where Gov. Brad Little signed an AI education bill at the Idaho Capitol on March 26, 2026. (Kaeden Lincoln/IdahoEdNews)
That makes the trust particularly attractive to smaller districts and charters, said Republican Superintendent of Public Instruction Debbie Critchfield. “The larger the group, the more leverage you have.”
Critchfield’s office has spoken with trust executives, Critchfield said. But her The office is involved to the extent that it can answer questions from local leaders. The trustees did not ask the department to step in and “save us,” Critchfield said.
“I just wanted to be able to provide factual information when asked,” she said by phone. “There are solutions on the table. They’re working with Blue Cross. They’re working with the Department of Insurance. This gets attention right away.”
Republican Gov. Brad Little’s office also emphasized this week that worker insurance depends on local decisions.
“The trust is a private, independent, self-insured organization that sets its own premium rates and selects its health benefits,” Emily Callihan, Little’s communications director, said by email. “We are working to understand the options available to local decision makers.”
Sen. Janie Ward-Engelking, D-Boise
” data-large-file=” class=”wp-image-29063 size-thumbnail” alt=”” width=”143″ height=”200″ size=”auto, (max-width: 143px) 100vw, 143px”/>Sen. Janie Ward-Engelking, D-Boise
Sen. Janie Ward-Engelking, a Boise Democrat and one of the House’s leading public education advocates, said leaders could help by tapping the Public Education Stabilization Fund, a rainy-day fund, to cover the deficit.
“I think that’s something we should pay attention to.” she said.
Ward-Engelking said she wasn’t surprised the trust ran out of money, and she blamed what she said was the state’s chronic underfunding of public schools. The state is underfunding Idaho school health care by $76 million by paying out money per support unit rather than per employee.
“We knew it was going to happen,” Ward-Engelking said Monday. “We underfund everyone.”
https://www.idahoednews.org/top-news/school-health-insurance-trust-that-ran-out-of-money-weighs-options-to-pay-blue-cross/
