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California teachers once had fully paid health coverage. Now they're rallying over premiums

"While your income isn't changing, your purchasing power has absolutely fallen."

An apple sits on top of stacked notebooks in a classroom with students in the background.

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Teachers in Bakersfield's Rosedale Union School District are preparing to rally as contract battles over health-benefit costs continue, with many educators who previously had employer-paid coverage now facing higher monthly out-of-pocket expenses.

Here's what to know

According to Bakersfield Now and KERO, the Rosedale Teachers Association argues that bigger health care bills are shrinking teachers' real take-home pay, even when their salaries do not change — a disagreement that has become a major issue in the ongoing Kern County negotiations.

Superintendent Sue Lemon said the district is also facing steep increases, and that the current proposal would add money per month toward employee benefits and fully pay for two employee health plans.

Compensation is about more than paycheck size, CSU Bakersfield economics professor Dr. Richard Gearhart said: "While your income isn't changing, your purchasing power has absolutely fallen. This kind of increase in how much you're having to pay out-of-pocket is a reduction in your total compensation." 

More background

Beyond the rise in benefit costs, the district is also dealing with enrollment losses, making the added expense harder to manage.

Gearhart said the quality of a benefits package can shape whether schools are able to bring in and keep teachers. When workers are comparing similar jobs, he said, "Non-wage benefits, especially health insurance, are a huge component in how people choose between jobs. People will choose to actively search for jobs in the districts that offer the better benefits."

What's being done?

In the planned rally, the teachers association says it wants to highlight how employees have moved from fully employer-paid coverage to paying more of the monthly cost themselves.

Lemon said the district is trying to balance higher medical expenses with declining enrollment. Employees can choose from seven health plan options, and under the current proposal, two of those plans would be fully covered for employees.

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Lemon said the immediate priority is avoiding layoffs.

Lemon summed up the district's bind, saying, "The biggest thing is that our enrollment is going down. So costs are increasing, enrollment's going down, which directly affects our finances … It's really hard to sustain all of these increases."

Where can I learn more?

Insurance costs are squeezing budgets beyond the classroom. These articles look at state rule changes, proposed rate hikes, and climate-related pressure in the home insurance market.

• California officials called a historic moment as new rules force insurers to write more policies.

• Across the U.S., one major issue drives home insurance rates higher as extreme weather worsens.

• Across the United States, insurers say one major cause is driving broad coverage upheaval.

• State Farm drew backlash after seeking to increase home insurance rates by 30%.

• In Texas, officials said it would exacerbate the burdens of steep windstorm rate hikes.

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