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Katy ISD recommends switching health plan administration to Aetna and pharmacy services to H‑E‑B to lower benefits costs
Summary
District risk management recommended Aetna for plan administration and individual stop‑loss coverage and H‑E‑B for pharmacy services after an RFP; consultants projected up to $10.6 million annual pharmacy savings compared with 2024 utilization, and Aetna program oversight would reduce administrative fees.
KATY, Texas — Katy ISD risk management officials recommended the board approve two major changes to district employee benefits: contract the district’s self‑insured medical plan administration and stop‑loss coverage to Aetna and move pharmacy benefit services to an H‑E‑B‑based model. Risk director Lance Nauman and the district’s consultant from Baldwin Group told trustees they solicited proposals for program oversight and pharmacy services, received multiple responses and concluded the Aetna/H‑E‑B combination offers the best long‑term financial and operational result. Key points staff presented: - Program administration and stop‑loss: The district received five proposals for program…
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