The Idaho Department of Insurance filed a petition Friday asking the Fourth District Court to take control of the financially troubled Idaho School Benefit Trust.
The civil filing comes after the department found the trust to be insolvent, and determined its financial condition threatens its ability to pay claims.
“Continuation of ISBT’s current operations has been deemed hazardous to the public,” the Department of Insurance said in a Friday news release.
The trust depleted its funds earlier this year, leaving nearly 100 districts and charters to confront a health insurance crisis that had been building for years.
The trust’s fund balance fell from $22.5 million at the end of 2020 to $2.1 million at the end of 2024. Trust manager Debbie Hainke notified members of a shortfall in July but has declined to provide members or EdNews with financial documents.
See EdNews’ timeline of stories on the trust here.
The petition asks the court to appoint state Insurance Department Director Dean Cameron as rehabilitator of the trust. The move would provide stability and preserve benefits promised to Idaho educators, Cameron said in the news release.
“We understand that this situation has created uncertainty for school districts and the employees who rely on these benefits,” Cameron wrote in the news release. “We want to assure Idaho educators and staff that the department is acting decisively to protect them.”
The department will provide an expected timeline and more details on the impact to participating school districts when available, the news release states.
In a frequently asked questions document included in the news release, the department addressed a concern several district leaders have shared with EdNews: why they weren’t informed sooner.
“District members should have received regular updates and reports on the trust’s financial condition,” the document reads. “It was the trust’s responsibility to keep its members informed.”
