The Patient Protection and Affordable Care Act of 2010 (PPACA) seems to be scaring midsize employers more than it’s scaring larger employers.
Analysta at an arm of Automatic Data Processing Inc. (ADP), Roseland, N.J., have published data supporting that conclusion in a summary of results from a December 2011 survey that drew responses from 254 employers with 50 to 999 employees and 250 responses from employers with 1,000 or more employees.
ADP — a company that offers benefits administration services — asked survey participants about their reasons for hiring outside companies to help with health benefits administration.
For both large and midsize employers, “ensuring compliance” was a top reason for outsourcing.
About 34% of the midsize employers and just 29% of the large employers” cited the complexity of complying with PPACA as a reason for outsourcing benefits administration.