Katy ISD’s healthcare plan for 2027 is expected to face a $12.1 million shortfall.
The big picture
The new health plan was approved by the board of trustees at an Aug. 24 meeting and includes a new option with Kelsey-Seybold Clinic.
The approval comes after representatives from the Texas American Federation of Teachers union shared a petition signed by 691 Katy ISD employees in July requesting that the board look into the health plan, which they described as underperforming.
What’s changed
Chief Human Resources Officer Brian Schuss said the district offered its employees three plans for 2026, but the staff recommended a fourth option from Kelsey-Seybold and co-pay plans for Kelsey Seybold and Memorial Hermann.
The four available health plan options for Katy ISD employees in 2027 include:
Zooming in
Schuss said the staff is not recommending any changes to deductibles or out-of-pocket maximums.
For the Memorial Hermann ACO and Kelsey-Seybold plans in 2027, patients only need to pay a $10 co-pay to see their primary care physician compared to paying “basically 100%” in 2026, and specialist visits will have a $50 co-pay.
Meanwhile, Memorial Hermann and Kelsey Seybold each have a $75 co-pay for urgent care center visits and a $500 co-pay for emergency room visits.
For premiums, the staff recommends increasing employer contributions by 10.9% from $385 to $427 per employee at a cost of roughly $4 million for the district. Employee contributions have also increased by $1.9 million.
Schuss said the district is expecting a “20% migration” for those on the Choice plan to switch to the Kelsey-Seybold plan.
Items worth mentioning
Kelsey Seybold Chief Medical Officer Donnie Aga said the organization also covers neighboring school districts including Lamar Consolidated ISD, Fort Bend ISD, Spring ISD and Aldine ISD.
Jill South, director of KelseyCare commercial sales, said the network of hospitals includes Texas Children’s Hospital, Memorial Hermann, HCA Healthcare, St. Luke’s and Houston Methodist, with MD Anderson being one of their referring partners for certain types of rare cancers.
Additionally, Tommy Harris, a representative from consulting firm The Baldwin Group, said employees on the high-deductible health plan or Choice POS plans already have access to Kelsey-Seybold, but those on the Memorial Hermann plan will need to change doctors if they switch to Kelsey-Seybold.
“Kelsey is a different provider network for primary and specialty,” Harris said.
All prescriptions remain with the H-E-B Pharmacy system. However, there are certain options and scenarios for employees to visit other pharmacies.
What they’re saying
On Aug. 24, board member Nathan Shipley said he received “positive” feedback from employees since the health plans were initially presented.
“This is a step, a great step in the direction of what a lot of people are looking for,” Shipley said.
What’s next?
Officials said they will gradually roll out communication regarding health plan details to employees from the end of September through the start of October.
