Reference no: EM13313795

Application: Effects of Legislation on HR Outsourcing

The stated goal of the Patient Protection and Affordable Care Act (PPACA) is to give more Americans access to health care. But relative to the topic of outsourcing, it may also be causing an increase in benefits administration outsourcing, as employers, especially those that are smaller, seek help in navigating the uncertain, complicated, ongoing health care-reform measures.

When facing the massive reporting and compliance requirements required by the new health care laws, many smaller and mid-size employers will seek more outside assistance/partnering. Many of them lack the back-office support to meet the PPACA's regulations and it is not a skill they want to make a core competency (Starner, 2011).

Using the 5C model (culture, costs, competencies, compliance, competitors), analyze how new laws would specifically stimulate increased outsourcing of health care and related benefits. Consider examples at the local, state, and federal level of changes in laws/regulations that either increased or decreased business partnering and outsourcing. For example, why would a federal requirement for universal health care coverage increase HR outsourcing?