Katy ISD approves 2027 employee health plan with $12.1M shortfall and new Kelsey-Seybold option
Katy ISD’s board of trustees approved the district’s 2027 employee health plan on Aug. 24. The plan is expected to run a $12.1 million shortfall. It adds a Kelsey-Seybold Clinic option after 691 employees signed a petition asking the board to review the current health plan, which they called underperforming.
Representatives of the Texas American Federation of Teachers union delivered the petition in July, according to the district.
Chief Human Resources Officer Brian Schuss said the district offered three health plans for 2026. Staff recommended adding a fourth option from Kelsey-Seybold and co-pay plans for Kelsey-Seybold and Memorial Hermann.
In 2027, employees can choose among four options: Memorial Hermann ACO, High Deductible Health Plan, Choice POS, and Kelsey-Seybold.
Schuss said staff is not recommending changes to deductibles or out-of-pocket maximums.
Under the Memorial Hermann ACO and Kelsey-Seybold plans, patients will pay a $10 co-pay to see a primary care physician. Schuss said employees in 2026 were paying “basically 100%” for those visits. Specialist visits will cost $50.
Both plans set a $75 co-pay for urgent care center visits and a $500 co-pay for emergency room visits.
Staff recommended increasing employer premium contributions by 10.9%, from $385 to $427 per employee. That increase will cost the district about $4 million. Employee contributions will also rise by $1.9 million.
Premiums vary by plan and coverage level. Employees on the Choice POS plan will pay $295 in 2027, up from $255 in 2026. Family coverage on Choice POS will cost $1,947, up from $1,686.
Employees on the Memorial Hermann ACO plan will pay $135 for individual coverage, up from $127 in 2026. Family coverage under that plan will increase from $964 to $1,027.
The High Deductible Health Plan will cost employees $91 for individual coverage, up from $85 in 2026. Coverage for an employee plus spouse will stay at $897.
Schuss said the district expects about 20% of employees now on the Choice plan to switch to Kelsey-Seybold.
Kelsey-Seybold Chief Medical Officer Donnie Aga said the clinic 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 hospital network includes Texas Children’s Hospital, Memorial Hermann, HCA Healthcare, St. Luke’s, and Houston Methodist. MD Anderson is a referring partner for certain types of rare cancers.
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. 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 will remain with the H-E-B Pharmacy system. Employees may have options to visit other pharmacies in certain scenarios.
At the Aug. 24 meeting, board member Nathan Shipley said he had received “positive” feedback from employees.
