1. Mississippi (average annual cost per employee: $6,282)

Mississippi has the lowest ACC out of the five least expensive states, replacing Kentucky as the lowest reported in the 2010 survey results.

The state also has the highest rate of obesity, with a 34.4% obesity rate.

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"These are important benchmarks for employers looking to expand into various states and the potential impact on overall human resource costs. This may also have a bearing on the various future policies states adopt in responding to health care reform in their local market," said Bill Stafford, UBA Vice President, Member Services.

2. Arkansas (average annual cost per employee: $6,741)

3. Kentucky (average annual cost per employee: $6,801)

(Photo credit: Chuck Felix)

4. Idaho (average annual cost per employee: $7,029)

5. Arizona (average annual cost per employee: $7,119)

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