Despite a deceleration in the annual rate of cost growth, health insurance expenses continue to be a major source of stress for employers. That would explain why company leaders say they are exploring several cost management strategies to continue battling expenses, according to a forthcoming joint survey by the National Business Group on Health and Watson Wyatt Worldwide...

More employers are turning to consumer-driven health-care plans to rein in their health costs, but such programs have so far created more smoke than fire. Enrollment in such plans remains anemic. But there's no shortage of industry players who say it's only a matter of time before the plans catch on with employees....An estimated 20 percent of employers offer consumer-driven health-care plans, but industry observers say between 5 percent and 10 percent of eligible employees are actually enrolled in such programs...

Most managers believe consumer-driven health programs will help contain costs, but few expect the plans to actually improve worker health. An OnlineBenefits survey of 283 companies from 41 states reveals that 83% of CEOs, 78% of CFOs, 72% of HR execs and 65% of benefit managers say CDH will help contain health care costs. Just 27% of all managers, however, think CDH will "improve employee health and wellness," according to the survey. Forty percent of benefit managers expect employee confusion over CDH -- which tends to result in low adoption. Just 22% of CFOs are concerned about the potential for employee confusion.

"It's not surprising to us that those closest to employee benefits delivery are most concerned about the ensuing confusion of CDH adoption," says OnlineBenefits CEO Alan Cohen. Survey respondents report that health plan communication, medical claim tracking, plan comparison and HSA/HRA account tracking are critical. They also indicate that consumer education, disease management, financial planning, health and wellness incentives and health risk assessments are necessary to ensure CDH success.

Generally, the value of accident or health plan coverage provided to you by your employer is not included in your income. Benefits you receive from the plan may be taxable, as explained later, under Sickness and Injury Benefits.

De Minimis (Minimal) Benefits

If your employer provides you with a product or service and the cost of it is so small that it would be unreasonable for the employer to account for it, the value is not included in your income. Generally, the value of benefits such as discounts at company cafeterias, cab fares home when working overtime, and company picnics are not included in your income. Also see Employee Discounts, later.

Holiday Gifts

If your employer gives you a turkey, ham, or other item of nominal value at Christmas or other holidays, do not include the value of the gift in your income. However, if your employer gives you cash, a gift certificate, or a similar item that you can easily exchange for cash, you include the value of that gift as extra salary or wages regardless of the amount involved.