I live and work for a company in the USA. To help lower health insurance cost the company I work for have introduced wellness programs. Beinning this year, 2013 they will begin biometric testing. If you fall outside 3 of 5 health parameters they assign a health coach. If you fail to show improvement in a year they say they will raise our deductble by $25 and will raise it be this amount each year you fail to improve. IS THIS LEGAL, OR IS THIS HEALTH DISCRIMINATION?

Hmmmm... we know have pedometers to plug in daily. Interesting question.

Not illegal and nothing to do with a HIPPA violation. A HIPPA violation would only be if the company was a health care provider and they shared health information without the permission of the employee. Companies can test the health of their employees and potential employees. Baring smokers is already a common practice, for example. Do the employees have a union and/or a contract.

A company may discriminate because of health, nothing illegal about it what so ever. Smokers often pay higher for their health insurance,

Obesity or unhealthy conditions are no a protected class (unless it's a recognized disability). So there is no such thing as health discrimination.

Wellness programs such as you describe are becoming increasing more common to help keep health costs down.

HIPAA doesn't get involved unless the company revealed the results of your biometric testing or the consultations with the health coach to someone you didn't authorize.