It's not insoluble, it is up to 3% soluble. "Most likely not enough to harm anyone." For some reason the state has declared it a federal disaster?
check out this green ice- look, it's not soluble! Fine to drink! http://i.imgur.com/pzBsLRP.jpg
That being said, I'm not going to take the risk, and I've only used water out of water bottles since this started.
The NIH has much more information about methylcyclohexanol here: http://toxnet.nlm.nih.gov/cgi-bin/sis/search/a?dbs+hsdb:@ter...
Edit -*
The NIH link is to a 4-methylcyclohexanol (CAS: 589-91-3), not to 4-methylcyclohexane methanol (CAS: 34885-03-5), a similar but distinct compound.
Any idea why the Wiki article gets the oxygen / hydrogen counts wrong?
http://en.wikipedia.org/w/index.php?title=4-Methylcyclohexan...
Presumably whoever created the page copied the info box and forgot to edit it.