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Because of the increasing costs, many employers are shifting the cost of health care plans to the employees who use most of the services. More workers are paying a larger share of health care costs than ever before. According to research from Hewitt Associates, the average worker is paying more than double what employees paid five years ago for health coverage. Out-of-pocket costs such as co-payments are expected to increase by 11 percent in 2006.

Nationally employees are seeing just under seven percent increase in health care costs this year. The good news is that the increase is much lower than the 15% increases in health insurance premiums we were seeing just three years ago. But it is still very expensive for businesses to provide health care coverage. It is estimated the national average health-benefit cost per employee is $7,089 dollars a year. That figure includes the cost of all medical and dental plans for employees and all covered dependents; employee premium contributions, but not their out-of-pocket costs.

Even with greater participation by employees, many smaller firms are finding it almost cost-prohibitive to continue to offer health care coverage. These firms are looking for innovative approaches to help them be able to continue to offer health care benefits without breaking the bank.

One mechanism that is gaining popularity is the HSA – or Health Savings Account. HSA’s are high-deductible, consumer driven plans that are similar to an individual retirement account for health care. HSA’s were created in response to the rising cost of health care and to give consumers more control over their health care costs. Even with the introduction of these higher deductible plans, many smaller firms cannot provide health care to workers. Research by the Kaiser Family Foundation found only three in five small firms offered health care coverage to employees in 2005, down significantly from 69% in 2000.

Other companies are focusing more on lowering premiums by promoting wellness among employees. More employers are offering their workforce incentives to stop smoking, and lose weight. Some provide an on-site gym, pay for health club memberships or sponsor on-site weight watchers meetings. According to the Small Business Administration, more than 80 percent of businesses with 50 or more employees have adopted some form of wellness programs. Studies show for every dollar a company spends on employee exercise and wellness it saves $4 in health care costs. Firms are also sponsoring flu-shot clinics and workshops on good nutrition to keep their employees health and happy.

There are less formal approaches a business-owner can take as well. For example, make sure you encourage your employees to use their vacation time. Stress is the number one cause of illness in the United States. Make sure your employees understand that you encourage a comfortable balance between work and leisure time.

Finally, consider allowing your company to go to the dogs. According to the American Pet Products Manufacturers Association, having pets in the workplace can create a more productive work environment, lower stress, and decrease employee absenteeism. Several independent medical studies found pets help lower blood pressure and increase levels of endorphins, the body’s natural painkillers. The calming impact of pets at work could have a significant impact on a firm’s long-term health costs.

Whatever you decisions you make for your company, make sure you stay appraised of current legislation which may impact a small firm’s access to affordable health care. Check with your state and federal representatives to learn more about proposed legislation and let your voice be heard.

Susan Wilson Solovic, president of Susan-Says®, and CEO/Chairman of St. Louis, MO-based SBTV.com—small business television—is a popular speaker, seminar leader, columnist, business consultant and author of several books, including “The Girls’ Guide to Power and Success.” She began her professional career as a television news anchor and reporter and was subsequently VP of marketing at an international asset-based lending division of a Fortune 100 company. Her legal background adds to her unique view of American business. Reach her at susan@susan-says.com.