“Traditional” health care benefits vs. consumer-directedbenefits—that is the question.

Many employers and employees are grappling with the question ofwhich plan is the best value for their company or their family.

With the Patient Protection and AffordableCare Act continuing to roll out, the confusion of one plan vs. asecond vs. a third is multiplied. However, one thing remains clear:More employers are choosing consumer-directed benefits.

According to the 18th Annual Towers Watson/National BusinessGroup on Health Employer Survey on Purchasing Value in Health Care,account-based health plans are the only plans are on the rise.They're increasing in popularity in part due to an excise taxinside PPACA that's set to take effect in 2018.

Consumer-directed benefits are a strong piece of the ABHP puzzleto help companies deal with the increasing price of health care.Not only have employers adopted CDBs to control their costs and inresponse to PPACA, they're easing the transition to this new modelby subsidizing the premiums and contributing to health savingsaccounts or health reimbursement arrangements, the popularcompanion plans that often accompany CDBs.

These moves can mean savings for both the company and theworkers. And there's more than just one type of savings. Here arethree examples of the types of savings that consumer-directedbenefits can provide for both employers and employees:

1) Insurance savings

Companies that successfully move employees into ABHPs save big,according to the Towers Watson survey. The research shows thatcompanies that have 50 percent or more of its workers with healthsavings accounts and other consumer-directed benefits report totalcosts per employee of more than $1,000 lower than companies withoutthese types of health plans.

2) Tax savings

This is a no-brainer. HSAs, HRAs and other tax-advantagedaccounts are just that: tax-advantaged. Employees keep more oftheir money; employers keep more of their money. It's awin-win.

3) Health savings

The savings here are a two-fer. Many companies use positiveemployee actions and incentives to help get its workforcehealthier. For the employee, that could mean additional incentivedollars into an HSA or other incentives, such as exercise equipmentor gift cards, but the real health savings is the “health.”Healthier workers mean fewer health dollars spent by the company,and the health savings emphasis here is the “savings.”

The benchmark Towers Watson is using for which companies areoutperforming others is the affordability for both employers andemployees. The report shows that the best performers—thosecompanies working toward bigger use of CDBs—are set up forlong-term success. These companies are learning how to make thePatient Protection and Affordable Care Act not only affordable fortheir employees but also for themselves.