Court approves state takeover of insolvent Idaho School Benefit Trust

A Fourth District Court judge approved a state takeover of the insolvent Idaho School Benefit Trust by appointing Idaho Department of Insurance Director Dean Cameron as rehabilitator. Cameron now has full control of the trust and its assets, while the trust’s five trustees and benefits manager Debbie Hainke are barred from conducting any business under the court order signed by Judge Lynn Norton. The rehabilitation grants Cameron authority over all assets, bank accounts, contracts, records, and the power to liquidate property to pay liabilities. The trust is a self-funded healthcare plan serving more than 100 school districts and charter schools. For the 2025-26 benefit year, which ended Aug. 31, it ran out of money and could not pay claims. Cameron found the trust in a hazardous financial position and filed for rehabilitation, including a required $13 million shortfall payment plan involving a Blue Cross of Idaho loan and a contribution call due by Sept. 30.