Effects of Legislation on HR Outsourcing

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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? 

To complete this Assignment, respond to the following in a 4 - to 5-page paper:

•Analyze the effects of legislation on HR outsourcing. 

oUsing the 5C model, analyze how new laws requiring universal health care would specifically stimulate increased outsourcing of health care and related benefits. 


oUsing the table below (Effects of Legislation on HR Outsourcing), do research to fill in five of the nine cells illustrating the effects of local, state, and federal legislation on HR outsourcing. 

Provide a brief description/explanation of each. 

Identify whether the legislation increased, decreased, or had no effect on HR outsourcing. 


Effects of Legislation on HR Outsourcing






•Evaluate the effects of federal legislation requiring universal health care coverage on the outsourcing of health care benefits in the U.S. 

oFrom your research, describe three specific effects you think such legislation would have on outsourcing of health care benefits. 

oWhat specific actions can HR professionals take to enable employees to navigate the complexities of PPACA?



Starner, T. (2011). Outsourcing health benefits grows more popular. Human Resources Executive Online. Retrieved from http://www.hreonline.com/HRE/story.jsp?storyId=533342142

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