A bill signed by Gov. Greg Gianforte this week paves the way for the creation of Montana’s largest school health insurance trust. Some of the state’s largest districts are cautiously optimistic the trust could help keep its health plan affordable.
Kalispell Public Schools Finance Director Denise Williams said many districts across Montana have struggled to keep health care plans affordable. Since 1991, the state has prohibited schools from raising levies to cover those costs.
Williams said she’s optimistic a statewide insurance pool could help districts control prices, but she still has some questions.
“I just don’t know enough about insurance pools to know if a $40 million start is enough,” Williams said.
The new law authorizes a $40-million deposit for the statewide trust. Montana School Boards Association Director Lance Melton said that should be enough to cover initial costs. Melton advocated for the policy during the legislative session and told MTPR the state funding reduces financial risk to schools seeking to join the trust.
“And what we’re left with is basically a big safety net hanging under the trapeze, so that as we put this thing together they’re going to have to voluntarily collaborate together,” Melton said.
At least 150 districts with a combined total of at least 12,000 employees would have to agree to join by summer 2026 in order to receive the initial state funding. If that quota is met, the state auditor would approve and oversee the trust.
Health insurance costs for all employees within the trust would be shared equally among participating schools.
