A recently published ADP survey finds that health care reform and increasing compliance complexity “may drive outsourcing of benefits administration.” According to the survey, “forty-five percent of HR/benefits decision-makers in midsized companies report that regulatory changes have made them more likely to outsource some or all of their benefits administration, as healthcare reform increases both the complexity and time required to administer benefits.”



 

Larry Grudzien, an attorney and My HR Storage HR and benefits consultant, says that ensuring compliance has been an increasing challenge for the past 15 years, as everything from HIPAA and COBRA,  the Family and Medical Leave Act (FMLA), Americans with Disabilities Act (ADA) and Age Discrimination in Employment Act (ADEA), to name a few, have increased administrative complexity.   “It has made it harder for employers to keep up with everything they’re supposed to do,” said Grudzien. “As new regulations are issued or prior ones are amended and modified, the trend will continue.”

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