The Fourth District Court appointed Dean Cameron as rehabilitator of the Idaho School Benefit Trust two weeks ago, vesting full authority over the entity’s assets and operations in the Idaho Department of Insurance director.
Cameron told EdNews on Friday that recovering funds from participating school districts has proven more difficult than initially projected. The trust, which provided health benefits to employees at more than 100 school districts and charter schools during the 2025-26 benefit year, exhausted its reserves earlier this year.
Financial Shortfall and Loan Repayment
The trust recorded a $10.5 million deficit by the end of May. To ensure claims could be paid through August 31, Blue Cross of Idaho, the third-party administrator for the benefit year, agreed to an $11.9 million loan carrying a 6 percent interest rate.
Cameron and his department are now tasked with collecting contributions from member employers to repay what is termed a surplus note. Cameron gained access to the trust’s books and records on September 24. Members were asked to either pay a lump sum or sign a binding 12-month contract for monthly payments.
Nearly 20 school districts were in arrears before being required to cover their share of the $13 million shortfall. Cameron noted that only four or five districts had failed to pay the lump sum or sign the monthly payment agreement. Most non-paying districts have since resolved their status, with claims for those still in arrears being held.
District Responses
Wallace School District remains an exception. Superintendent Todd Howard told EdNews on Monday that the district will continue making monthly payments but refuses to sign the 12-month binding contract.
Coeur d’Alene School District, the trust’s largest member, also initially declined to sign the contract. Superintendent Shon Hocker wrote a memo on September 30 stating that employees had received claims denials from Blue Cross or providers. Cameron clarified that no claims for legitimate covered services were denied; rather, they were held due to a lack of funds in the trust.
Coeur d’Alene School District has since paid its full share in a lump sum.
Contracts and Records
The Idaho Department of Insurance possesses membership lists for both the 2025-26 and 2026-27 benefit years but considers them unavailable to the public. During the last benefit year, which ended August 31, the trust had approximately 16 contracts in place.
These contracts included agreements with actuaries, consulting firms, legal entities, a prescription service, and benefits manager Debbie Hainke. Hainke’s employment contract expired on September 30.