Blue Cross of Idaho is caught in the middle as the trust responsible for covering schools’ benefits confronts a shortfall.
A letter from the Idaho School Benefit Trust informed participating schools and districts of “extremely high” medical claims during the 2025-2026 benefit year, “much higher than they have ever been,” it read. The trust funds health insurance for more than 100 school districts and charter schools in the state, Idaho Education News reported. The trust had depleted its reserve funds to cover those claims.
The estimated funding shortfall amounts to roughly one month’s worth of contributions. The letter said Blue Cross of Idaho, which carries out administrative services, will receive medical claims from the spring and summer over the next 12 months, as well.
“The ISBT is working with the Idaho Department of Insurance and Blue Cross of Idaho to better estimate the amount of the funding shortfall, to provide funding options and to soften the immediate cash impact for participating school districts,” the letter said.
Idaho Education News also reported Aug. 4 that the trust’s manager said schools would receive more information about the financial impact during the following week.
School districts are transitioning from a self-funded to a fully insured plan for the 2026-2027 benefit year. The trust said this past year’s funding requirements will not affect the renewal.
The Idaho Department of Insurance told Becker’s it could not release financial information, but it is “actively working with the trust” on a remedy, as authorized by the state code. The department also said “the trustees ensure the trust remains solvent and compliant.”
Becker’s contacted the Idaho School Benefit Trust and Blue Cross of Idaho and will update this story if more information becomes available.
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