Katy ISD opts for Aetna insurance, HEB pharmacy for significant annual savings

During the Katy ISD Board Work Study Meeting on June 16, 2025, a significant focus was placed on budget amendments and cost-saving measures for the district's health plan. The discussion highlighted a budget amendment for McMeans Junior High, which raised questions about its necessity compared to other schools. Board members expressed a desire for clarity on why this particular school required additional funding for library materials, emphasizing the need for transparency in budget allocations across the district's 78 campuses.

In a pivotal moment, the board reviewed proposals for plan administration and individual stop-loss insurance coverage for the Katy ISD self-insured health plan. The district's risk management team recommended Aetna as the provider, citing substantial savings of over $1 million annually due to lower pricing and no network interruptions for staff. This decision is expected to streamline services and enhance support for plan members.

Additionally, the board discussed the pharmacy plan for the upcoming year, with a recommendation to partner with HEB. This collaboration could yield projected savings of $10.6 million, a significant reduction from previous expenditures. The proposal ensures that staff members will continue to have access to necessary medications without disruptions, maintaining the existing formulary.

The meeting underscored the district's commitment to fiscal responsibility and effective resource management, with board members expressing optimism about the potential for these changes to positively impact both the budget and the well-being of Katy ISD employees. As the district moves forward, the anticipated savings may provide opportunities for enhanced compensation for teachers and staff, addressing ongoing concerns about funding and support within the educational community.