Health Insurance costs rising

The cost of health insurance is still rising, but not as rapidly as it has in recent years, according to a survey from Mercer Human Resource Consulting LLC.

The average per-employee cost rose 7.5 percent in 2004, which was the lowest increase since 1999 and was down from last year's increase of 10.1 percent. The annual study found the average total cost of health benefits (including medical and dental) for active employees was $6,679 in 2004. In order to help employees stay healthy, employers are also investing in proactive wellness programs that target diseases such as diabetes, heart disease and hypertension.

The study also found that high deductibles of $1,000 or more in some small employers' preferred-provider organization (PPO) plans could be discouraging people from seeking medical attention.

Mercer Human Resource Consulting said the study, which includes more than 3,000 employers, is the largest of its kind.