NEW YORK (CNNMoney.com) -- U.S. employers in 2006 again saw health care costs rise well above inflation, though the gains were the lowest in eight years, according to a survey released Monday.

In 2006, the average health care rate increase was 7.9 percent, and it is expected to be 7.7 percent next year, according to the survey by Hewitt Associates, a staffing firm.

San Antonio showed the biggest increase in average health care costs at 13.1 percent.

The company expects the average health cost per person to increase from $7,744 this year to $8,340 next year.

The portion paid by employees next year is projected to rise 7.8 percent to $3,305, from $3,065 this year.

"While it is always encouraging to see a decline in health care cost increases, we continue to be concerned about the overall cost of care for both employers and their employees," said Craig Dolezal, national health care practice leader at Hewitt Associates, in a statement.

"If we have any hope of ever truly improving costs and outcomes, we must focus on effectively influencing the interactions between patients and providers. That is where health care happens."

Several U.S. markets continued to show double-digit rate increases, including Cleveland, Hartford, Milwaukee, San Antonio, San Francisco and St. Louis. San Antonio showed the biggest increase at 13.1 percent.

Hewitt forecasts that point-of-service (POS) plan expenses will increase 9 percent in 2007, followed by health maintenance organization (HMO) plans at 8 percent, and 7 percent increases for preferred provider organization (PPO) plans.

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