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HELENA, 2025-06-25
Statewide trust aims to offer Montana school districts affordable health coverage
A new trust could help schools manage rising health insurance costs.
- A new statewide trust aims to lower health insurance costs for Montana school districts.
- The trust needs at least 150 school districts,representing 12,000 employees,to participate.
- If the trust is validated by July 2026,$40 million will be allocated to it.
- Bridged Health Alliance plans to offer benefit and cost details to districts in August and September.
Skyrocketing health insurance costs are a major concern for Montana school districts, but a new statewide trust offers a potential solution; how will this trust lower costs? this trust aims to provide more affordable and predictable health coverage by pooling resources across districts.
A Push for Predictability
John Doran, chief strategy officer for Bridged Health Alliance, emphasizes the need for stability. “Schools need more predictability, and quiet frankly, they need more affordability,” he said. “And that’s what we aim to deliver.”
<p>Health insurance a major cost for Montana schools</p>Bridged Health Alliance, formerly known as another organization, will operate the trust once enough school districts commit. The core idea is that a larger insurance pool will lead to lower administrative costs and more balanced risks, ultimately stabilizing insurance rates.
“By banding together, we can bring these resources together and we can stabilize cost not only for the short term but for the long term – so that we can do two things essentially: number one, improve the benefits that we have across the state of Montana, and more importantly, put money back in district budgets and back in teachers’ pockets where it belongs,” Doran said.
Legislative Backing
The concept for this trust originated during the 2023 Montana legislative session. House Bill 332, approved by a bipartisan group of lawmakers, earmarked $40 million for the trust, contingent on participation from at least 150 school districts, representing at least 12,000 employees.
Rep. David Bedey, R-Hamilton, sponsored HB 332, acknowledging the groundwork laid by former Sens. Edie McClafferty, D-Butte, and Dan Salomon, R-Ronan.Bedey, a former member of the Hamilton school board, highlights the growing burden of insurance costs. “The benefit portion of that compensation package is growing at a rate that is much greater than inflation,” he stated. “As our school funding formula has inflation caps built into it, it was certainly taking up a larger portion of a school’s general fund budget in order to provide adequate coverage.”
The Clock Is ticking
HB 332 sets a deadline of July 2026 for the trust to be officially validated. Failure to meet the participation threshold by then will result in the $40 million reverting to the state.
Bedey remains optimistic about the trust’s prospects.”I think it’s a move in the right direction, and I think it’s critical for the fiscal stability of our schools to have a tool like this in the toolbox,” he said.
<div class="Figure-container">
<img src="https://ewscripps.brightspotcdn.com/dims4/default/35c8f23/2147483647/strip/true/crop/4240x2832+0+0/resize/1280x855!/quality/90/?url=http%3A%2F%2Fewscripps-brightspot.s3.amazonaws.com%2F9d%2F6d%2Fd028515e40f2b439ddac554a49a9%2Fdsc00328.JPG" alt="John Doran" srcset="https://ewscripps.brightspotcdn.com/dims4/default/35c8f23/2147483647/strip/true/crop/4240x2832+0+0/resize/1280x855!/quality/90/?url=http%3A%2F%2Fewscripps-brightspot.s3.amazonaws.com%2F9d%2F6d%2Fd028515e40f2b439ddac554a49a9%2Fdsc00328.JPG 1x,https://ewscripps.brightspotcdn.com/dims4/default/71c9938/2147483647/strip/true/crop/4240x2832+0+0/resize/2560x1710!/quality/90/?url=http%3A%2F%2Fewscripps-brightspot.s3.amazonaws.com%2F9d%2F6d%2Fd028515e40f2b439ddac554a49a9%2Fdsc00328.JPG 2x" width="1280" height="855"/></div>
<figcaption class="Figure-caption" itemprop="caption">John Doran, chief strategy officer of Bridged Health Alliance, says he's confident the new statewide trust will reach its minimum threshold.</figcaption>Next Steps
Doran shares Bedey’s confidence, adding that Bridged is working to tailor benefit designs to each district’s unique needs. The organization aims to provide school districts with detailed details on potential benefits and costs in August and September, with a commitment deadline in early November. If enough districts participate, coverage could begin on July 1, 2026.
“My dad was a teacher for 30 years, my wife is a teacher, her mother is a retired teacher – suffice it to say, public education is near and dear to my heart,” he said.”the time is now. Schools across the state need this,they deserve this,and we are incredibly excited to act on their behalf.”
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Reader question:-What are the biggest challenges your local school district faces when it comes to providing health insurance for its employees? Share your thoughts in the comments.
Legislative Backing
The concept for this trust originated during the 2023 Montana legislative session. House Bill 332, approved by a bipartisan group of lawmakers, earmarked $40 million for the trust, contingent on participation from at least 150 school districts, representing at least 12,000 employees.
Rep. David Bedey, R-Hamilton, sponsored HB 332, acknowledging the groundwork laid by former Sens. Edie McClafferty, D-Butte, and Dan salomon, R-Ronan.Bedey,a former member of the Hamilton school board,highlights the growing burden of insurance costs. “The benefit portion of that compensation package is growing at a rate that is much greater than inflation,” he stated. “as our school funding formula has inflation caps built into it, it was certainly taking up a larger portion of a school’s general fund budget in order to provide adequate coverage.”
The Clock is ticking
HB 332 sets a deadline of July 2026 for the trust to be officially validated. Failure to meet the participation threshold by then will result in the $40 million reverting to the state.
Bedey remains optimistic about the trust’s prospects.”I think it’s a move in the right direction, and I think it’s critical for the fiscal stability of our schools to have a tool like this in the toolbox,” he saeid.
<div class="figure-container">
<img src="https://ewscripps.brightspotcdn.com/dims4/default/35c8f23/2147483647/strip/true/crop/4240x2832+0+0/resize/1280x855!/quality/90/?url=http%3A%2F%2Fewscripps-brightspot.s3.amazonaws.com%2F9d%2F6d%2Fd028515e40f2b439ddac554a49a9%2Fdsc00328.JPG" alt="John Doran" srcset="https://ewscripps.brightspotcdn.com/dims4/default/35c8f23/2147483647/strip/true/crop/4240x2832+0+0/resize/1280x855!/quality/90/?url=http%3A%2F%2Fewscripps-brightspot.s3.amazonaws.com%2F9d%2F6d%2Fd028515e40f2b439ddac554a49a9%2Fdsc00328.JPG 1x,https://ewscripps.brightspotcdn.com/dims4/default/71c9938/2147483647/strip/true/crop/4240x2832+0+0/resize/2560x1710!/quality/90/?url=http%3A%2F%2Fewscripps-brightspot.s3.amazonaws.com%2F9d%2F6d%2Fd028515e40f2b439ddac554a49a9%2Fdsc00328.JPG 2x" width="1280" height="855"/></div>
<figcaption class="Figure-caption" itemprop="caption">John Doran, chief strategy officer of Bridged Health Alliance, says he's confident the new statewide trust will reach its minimum threshold.</figcaption>Next Steps
Doran shares Bedey’s confidence, adding that Bridged is working to tailor benefit designs to each district’s unique needs. The association aims to provide school districts with detailed details on potential benefits and costs in August and September, with a commitment deadline in early November. If enough districts participate, coverage could begin on July 1, 2026.
Pro tip:-School districts should carefully evaluate the proposed benefit designs and cost structures offered by Bridged Health Alliance to determine if the trust aligns with their specific needs and financial capabilities.
“My dad was a teacher for 30 years, my wife is a teacher, her mother is a retired teacher – suffice it to say, public education is near and dear to my heart,” he said.”the time is now. Schools across the state need this,they deserve this,and we are incredibly excited to act on their behalf.”
Weighing the Pros and Cons: Montana’s Health insurance Trust
The proposed statewide health insurance trust for Montana schools presents both opportunities and potential drawbacks. It is vital for school districts to carefully evaluate the benefits and risks before making a decision about participation. This requires a thorough assessment of their current insurance landscape. Then, they need to compare it with what the trust offers.
Potential Benefits of the trust
Joining the state-wide trust could provide several advantages for Montana school districts.
- Reduced Costs: Pooling resources with other districts can lead to lower administrative fees.Additionally, negotiating better rates from healthcare providers is possible.
- Predictable Rates: The trust aims to stabilize insurance premiums.This lessens the financial strain on schools’ budgets.
- Improved Benefits: A larger pool might give access to more extensive and beneficial insurance plans.
- Local Control: The trust is designed to be governed in Montana. This ensures decisions are made with the unique needs of Montana schools in mind.
Potential Drawbacks and Considerations
While the trust holds promise, there are potential downsides that districts should consider.
- Initial Commitment: Joining requires a long-term commitment. This could affect a district’s adaptability to explore option insurance options in the future.
- Dependence on Participation: The trust needs sufficient participation from districts to be successful. If the enrollment targets aren’t met, the trust might not launch. The benefits might be lessened.
- benefit Design: Districts must carefully evaluate the benefits packages offered. They must determine if they meet the specific needs of their employees.
- Unforeseen issues: As with any new initiative, there’s always the possibility of unforeseen issues, such as unexpected claims or administrative challenges.
Will the Montana health insurance trust really cut costs? Yes, the trust aims to lower costs via larger risk pools and lower administrative expenses. What happens to the $40 million earmarked in the bill if the participation goals aren’t met? The money would go back to the state.
Making an Informed Decision
School districts have many considerations before making a decision. They should:
- Assess current Needs: Evaluate current insurance costs,benefit offerings,and employee satisfaction.
- Review Trust Details: Thoroughly examine the proposed benefit designs, cost structures, and governance of the trust.
- Compare options: Compare the trust’s offerings with existing insurance plans and other available options.
- Seek Stakeholder Input: involve school board members, administrators, teachers, and other staff members in the decision-making process.
- Consider Long-Term Implications: Evaluate the potential impact on the district’s financial stability and ability to attract and retain employees.
By carefully weighing the pros and cons, school districts can make informed decisions. They can decide whether this statewide trust effectively addresses their insurance needs. This is the first step in getting more affordable and predictable health coverage for Montana’s educators.
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