State auditor approves new school health trust with at least 150 school districts on board

There’s a new school health insurance option on the block, and so far, more than 150 districts across Montana have signed up to make the switch.

State Auditor James Brown on Tuesday announced he approved the new Bridged Health Alliance Trust after ensuring it met the statutory requirements of having at least 150 school districts opt in representing at least 12,000 people in the Treasure State.

With those requirements met, State Superintendent Susie Hedalen will now place $40 million in incentive funds into the trust, as outlined in House Bill 332, sponsored by Rep. David Bedey, R-Hamilton, during the 2023 Legislative Session.

The idea behind the trust is excess savings wouldn’t go to a corporation but instead would be returned to the districts. Both large and small districts are in the trust, though smaller districts typically have less to lose.

The Missoula County Public School Board held a rigorous debate over whether or not to join the trust. The district’s insurance committee voted against joining, citing uncertainties around how it will compare to their current, widely-supported insurance.

Superintendent Micah Hill explained to the board joining the trust would give the district more bargaining power, which could lead to savings. He coined this as the “Costco effect.” Hill told the board it still had the option to opt-out before the July 1 deadline.

The board voted 9-1 to join the trust.

Many school advocacy organizations have endorsed the Bridged Health Alliance Trust, including the Montana Federation of Public Employees and the Montana School Board Association.

Florence-Carlton School Board voted unanimously to join the trust at Superintendent Todd Fiske’s recommendation.

“When the Legislature jumps in to give $40 million to our public education regarding health care, I would hate to see that we don't rally around trying to receive those dollars, they're so hard to get,” Fiske said.

State Auditor James Brown said in a statement HB 331 created a “new paradigm” for providing health insurance school district employees in Montana.

“At a time when rising costs are hitting everyday Montanans from every direction, our educators now have expanded options for health insurance coverage,” said Brown.

Hedalen congratulated Bridged Health Alliance on the approval in a statement on Tuesday.

“I am hopeful that this will meet our state goal of lowering health insurance costs for schools while expanding health benefits for educators! I look forward to working with the State Auditor, Bridged Health, and local school districts as this new option is implemented,” Hedalen said.