Kairos negotiates $800,000 savings for Scottsdale Unified health benefits plan

The Scottsdale Unified School District (SUSD) Governing Board held a regular meeting on May 13, 2025, where key discussions focused on healthcare cost savings and the upcoming fiscal year budget.

A significant highlight was the presentation by Kairos, the district's pharmacy benefit manager (PBM), which reported substantial savings from renegotiated contracts. The new agreement with Maxor, the PBM, is expected to save the district approximately $800,000, with $600,000 of that directly benefiting Scottsdale. This change, effective from October 2024, has already led to reduced prescription drug costs for members. Additionally, Kairos introduced an infusion program aimed at redirecting patients from high-cost facilities, which has identified potential savings of $474,000, although participation has been low.

The meeting also unveiled a new virtual physical therapy program launched in February 2025, providing unlimited access to participants at no cost. This initiative is projected to save around $420,000 in the first year by reducing unnecessary physical therapy and surgical expenses. Other cost-saving measures discussed included a center of excellence for low-cost procedures and a new substance use program.

In terms of the fiscal year 2025-2026 budget, the district anticipates a reduction of $2.7 million due to changes in student enrollment and funding. Despite this, the board has approved a $1.5 million salary increase for employees and a $1 million contribution towards insurance costs. The budget discussions revealed a shortfall of $145,000, prompting the board to explore further savings within departmental budgets, which have already seen reductions ranging from 1% to 47%.

Overall, the meeting underscored the district's commitment to managing healthcare costs effectively while navigating budget constraints, ensuring that resources are maximized for educational purposes. The board plans to continue discussions on budget adjustments and potential funding opportunities in the coming months.