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Rising health care costs could hit paychecks by 2026

Kern County professionals and workers are preparing for rising health care costs, with experts saying employees could see larger paycheck deductions as soon as next year.
Rising health care costs could hit paychecks by 2026
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BAKERSFIELD, Calif. (KERO) — Health care costs are projected to rise by 2026, and local experts warn employers may pass those increases onto workers. Some Kern County employees are already seeing higher deductions from their paychecks.

  • Health care costs for employers are projected to rise by about 6% between 2025 and 2026, which may lead to higher paycheck deductions for employees.
  • Dr. Juanita Webb, a certified human resources professional in Kern County, emphasizes that the majority of health care spending goes toward hospital care, doctor visits, and clinical services.
  • Webb advises employers to stay informed and work with insurance brokers now to find the most affordable health care plans.

Employers are bracing for another increase in health care costs, and local experts say that may soon impact workers’ wallets.

Projections show that health care expenses could rise by as much as 6% over the next two years, according to Dr. Juanita Webb, a certified human resources professional in Kern County.

“According to some research, it shows that it’s going to increase about 6% in the 2025–26 years,” Webb said.

More than half of the nation’s health care spending goes toward hospital care, physician visits, and clinical services, she added.

Webb advises employers to work closely with insurance brokers now to secure the most cost-effective plans and encourages workers to start doing their homework too.

“You really need to stay current, especially as an employer,” Webb said. “You need to make sure that you’re looking down the road.”

For employees like Uriel Rincon, an IT technician at a local elementary school, the impact is already being felt.

“This year and the next, we’re going to see a rise in the cost of our health insurance,” Rincon said. “It depends on which plan you have, but for the most part, all of them are going up.”

Rincon says his current deduction is about $250 per month, but he’s been told to expect that to increase by $100 in the coming weeks.

Business owners are also feeling the strain. Robert Blankenstein, owner of All American Heating and Air Conditioning, said monthly premiums for his employees are increasing sharply.

“You’re paying about $100 to $130 a month now, it’s going to be worth $300 to $800 a month,” Blankenstein said.

Some workers, like Luz Ruiz, an accounts receivable specialist, haven’t seen the full effect yet, but they’re worried.

“I think it’s going to depend a lot on our employers, whether they pass those increases,” Ruiz said.

She says families living on a single income or covering dependents could be hit hardest.

“People with a single income have a lot less wiggle room,” she said. “And people with kids, it’s going to take a toll.”

While rising health care costs may be unavoidable, experts say being informed now can help families and employers better prepare for what’s ahead.


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