On the Hook for Medical Claims? You’re Not Out of Options

The big news: Thousands of public school district employees — including Idaho Education Association members — could be on the hook for millions in unpaid medical claims because the Idaho School Benefit Trust ran out of money. But if you are one of those people, the Idaho Education Association Dues Hardship Fund could help.  

How we got here: The Idaho School Benefit Trust, which many of the state’s public school districts rely on for medical insurance payments, has a $13 million shortfall that must be made up if the trust is to continue.  

• ISBT’s fund balance dropped from $22.5 million in 2021 to $2.1 million in 2025.  

• Participating districts were told they must begin making payments — many of which number in the hundreds of thousands — to keep their coverage and close the $13 million shortfall gap. This is on top of a 19.5% rate hike.  

• The first payments were due on Sept. 10. But if a district cannot make payments, claims submitted before Aug. 31 may become the responsibility of educators who receive their reimbursements through the trust.  

How you can get help: If you suffer financial hardship due to the ISBT debacle, you could be eligible for the IEA Dues Hardship Fund.  

• The fund is for members who are experiencing significant financial difficulties. If the ISBT mess is squeezing your budget, it can take dues off your plate while you sort out the rest. 

How the fund works: The fund is open to any IEA member.  

• To apply, email [email protected]. 

• You’ll be asked to apply in writing and provide verification of your circumstances. Applications will be handled through IEA’s Office of Business and Finance.  

• Your application will go to the IEA Executive Committee, which will make the final decision.  

• IEA Hardship Fund dues are applied directly to your dues, not to you. They cannot be claimed as a tax deduction.  

• Assistance is capped at your total national, state and local dues for the membership year. 

What’s being done to stop the bleeding: In recent weeks, the Idaho Department of Insurance stepped in to take control and rehabilitate the trust. The trust is also changing models: As of Sept. 1, the trust changed from a self-funded insurance pool to a fully insured Blue Cross plan.  

Bottom line: You may be waiting longer than you’d like for medical claims to clear, through no fault of your own. Applying to the IEA Dues Hardship Fund costs nothing but the time and effort to fill out the application.