Collecting payments and convincing school districts to sign binding agreements to cover the Idaho School Benefit Trust’s $13 million shortfall has been a little bit more challenging than anticipated, Idaho Department of Insurance Director Dean Cameron told EdNews on Friday.

It’s been two weeks since the Fourth District Court named Cameron the rehabilitator of the trust, vesting in him full control of the trust and its assets, including the authority to liquidate assets to pay claims and liabilities.

“Our focus is singular in attempting to make sure that all the claims that school district employees incurred are appropriately processed and paid for,” Cameron said.

The trust, which more than 100 school districts and charter schools participated in during the 2025-26 benefit year, ran out of money this year and recorded a deficit of $10.5 million at the end of May. Blue Cross of Idaho, the trust third-party administrator for that benefit year, agreed to make an $11.9 million loan with 6% interest to pay off claims through Aug. 31.

As rehabilitator of the trust, Cameron and the department have been tasked with collecting contributions from the member employers to pay off the loan, called a surplus note, to Blue Cross.

Cameron was unable to share many details about what the department has learned since gaining access to the trust’s books and records on Sept. 24, but described some of the complications with corralling the more than 100 members into agreeing to either pay a lump sum or sign a 12-month binding contract agreeing to make monthly payments to cover their share of the shortfall.

“Frankly, it’d have been easier for everybody if everybody paid a lump sum,” Cameron said. “But we acknowledge that for some districts that was not going to be possible, and so Blue Cross offered the monthly option in that case.”

He said there have been some miscommunications and some rumors.

“I think in part because maybe school districts were somewhat surprised,” Cameron said. “They shouldn’t have been, but they were.”

Cameron said nearly 20 school districts were in arrears even before they were required to cover the $13 million shortfall. About four or five school districts had not paid the lump sum and did not sign the contract to pay monthly installments. Most of those have been resolved, with the exception of one holdout: Wallace School District.

“For every one of those districts in arrears, and every district who hasn’t paid, their claims are being held,” he said.

Wallace Superintendent Todd Howard told EdNews on Monday that the district will continue to make monthly payments, but school leaders had not changed their minds on refusing to sign the 12-month binding contract.

“We obviously have that one to resolve and we’ll be trying to work with them best we can,” Cameron said Friday.

He said the department cannot pay claims for which it does not have any money, which is, in essence, the dilemma.

The difference between denials and delays

The Coeur d’Alene School District, the trust’s largest member, also did not sign the contract. That presented another complication in rehabilitation.

Superintendent Shon Hocker wrote in a memo to staff on Sept. 30 stating the district learned that some employees and dependents “have received claims denials from Blue Cross, or their providers.” EdNews reported on that memo later that day. Cameron took issue with the statement that Blue Cross “denied” claims.

“I don’t believe that’s accurate at all,” he said.

Cameron said no claims have been denied for any legitimate service for covered benefits due to the arrangement with Blue Cross. Rather, claims have been held or not processed because there was no money to process them.

“I realized Coeur d’Alene doesn’t know their own claim situation,” Cameron said. “But if they did, the best deal they had was paying their share of the surplus.”

If any teacher has received a denial, Cameron said they should contact the Idaho Department of Insurance.

The district has since paid its full share in a lump sum to ensure medical claims are processed and paid.

No new public records available

Now that the department has access to the trust’s books and records, EdNews asked Cameron if any documents are now available for public records requests.

“I can’t share anything with you,” Cameron said.

EdNews asked if the department has the trust’s membership list for the 2025-26 and 2026-27 benefit years. Cameron said the department “absolutely” has those lists, but he said they are not available to the public. He added that he will check with his team in the coming days to provide a formal response to the request.

“I don’t know that there’s anything much that can be disclosed,” he said. “I’m frankly being more candid with you than probably my team would be comfortable in me being.”

Cameron said there is a lot that he would “love to disclose” and there is a lot of important information that needs to get out, but releasing that information right now may be premature.

Some of the trust’s contracts have expired

Cameron said the trust had about 16 contracts in place during the last benefit year, which ended Aug. 31, and the department has been reviewing each of them to determine if they should be extended or terminated.

Those include contracts with actuaries, consulting firms, legal entities, a prescription service and an employment contract with benefits manager Debbie Hainke.

Cameron said Hainke’s contract expired on Sept. 30.

“Our focus is to pay the claims of the teachers and school district employees, and any contract that is distracting from or taking resources from paying those claims is being carefully scrutinized and considered,” Cameron said.

The investigation continues 

In addition to collecting contributions and paying claims, the department has another team of staff and contractors conducting an investigation into what went wrong with the trust and if anything “inappropriate” took place.

“I can’t really give you an update on that,” Cameron said. “A, because I don’t know what the latest update is on it, but B, because even if I did, I couldn’t disclose it.”

That team will continue its investigation while other staffers focus on collecting contributions and arrears. Cameron will also be handling appeals for claims that providers denied because they weren’t medically necessary or part of covered benefits.

“Those get appealed to me, and so we do have some claims that are being appealed,” he said.

The department is funded by fees paid by insurance companies, insurance agents, third party administrators and by any entity the department regulates. Cameron said no general fund tax dollars are being spent on the investigation or rehabilitation.

“We are spending money from the fees that we collect from agents, carriers, third-party administrators to pay that,” he said. “So others are certainly contributing towards that impact.”

The department will stay in its role as rehabilitator until the surplus note is paid back to Blue Cross of Idaho, which could take three years.

As of Sept. 1, the trust is fully ensured through Blue Cross of Idaho. The insurance company now holds all the risk and will pay all claims.

A lingering question is how many school districts will renew membership for the next benefit year. This year, districts received renewal notices in late April and were required to make a decision by July 1.

“Obviously, when it comes time for renewal, that’s going to be another question that I think they’re going to have to decide how to deal with,” Cameron said.