Only four states have per employee benefit costs lower than what Arizona had last year, according to a new survey from United Benefit Advisors.

But even within Arizona there is a large variation among cities. Per employee benefit costs tend to be about 10 percent less in Tucson than in the Phoenix said Harry Lodge, principal in Harry Lodge & Associates, 6117 E. Grant Road, which is part of United Benefit Advisors.

One reason Arizona’s costs may be lower, according to Lodge, is the prominence of construction in the state, which attracts younger, healthier employees who have lower health costs.

In Flagstaff where there is less construction, benefit costs work out to be about 25 percent higher, Lodge said.

The survey, which tracked 2007 costs, found that Arizona’s per employee cost was $5,813 for the year up 5.2 percent over the 2006 average of $5,523. Arizona’s costs averaged about 15 percent lower than other western states, Lodge said.

The four states with lower per-employee averages were Arkansas ($5,169), Idaho ($5,564), Mississippi ($5,624) and Kentucky ($5,640).

Massachusetts, which has a mandatory health benefit plan, had the nation’s highest per employee cost of $9,034 for 2007, up 4.7 percent from $8,631 in 2006.

"Plans offered by employers in Massachusetts are in reality costing a fortune," Lodge said.

The United Benefit Advisors survey is comprised of data collected from 11,723 employers who extend health benefits to nearly 4.5 million employees and family members. The survey emphasized small- to mid-sized employers, who represent the majority of the nation’s 3 million-plus employers.