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    Patient Protection and Affordable Care Act (PPACA)

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    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 3- to 4-page paper:

    Analyze the effects of legislation on HR outsourcing.
    Using the 5C model, analyze how new laws requiring universal health care would specifically stimulate increased outsourcing of health care and related benefits.
    Using the table provided in this week's Learning Resources (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.
    Evaluate the effects of federal legislation requiring universal health care coverage on the outsourcing of health care in the U.S.
    From your research, describe three specific effects you think such legislation would have on outsourcing of health care.
    What specific actions can HR professionals take to enable employees to navigate the complexities of PPACA?

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    Solution Preview

    The response addresses the query posted in 1092 words with APA references

    //In the past decade, labor laws and employment regulations proliferated that helped the employers to expand their horizon of outsourcing, which is one of the complex and time-consuming activities in human resource administration. In this section, 5C model is used to examining the ways in which new laws stimulate the increased outsourcing of healthcare and related benefits.//

    Outsourcing in any organization occurs when the organization purchases any services or goods from other sources or outside suppliers rather than doing the same within its capabilities to cut the cost. The outsourcing of human resource has transformed and accelerated a lot over the past few decades. The healthcare industries are increasingly using outsourcing because of the intense pressure to increase the quality and efficiency of healthcare services delivery.

    There is an intense pressure of cost on the healthcare industries, which pushes them to look for saving through outsourcing. In the past few years, the use of outsourcing has increased in healthcare industries. For instance, 42 healthcare firms in a survey responded that there is 14% rise in the number of clients between 2009 to 2010, and many organizations including healthcare firms use the outsourcing principle to reduce their cost (Daly, 2011). The federal laws such as the Reinvestment Act, the Affordable Care Act, and the American Recovery and Patient Protection Act are pressurizing the healthcare companies to deliver the quality services with efficiency. These laws comprise of the cost reduction initiatives, which are essential because private payers invest a large amount in hospitals, which is considered as one of the most expensive element of the healthcare industry (Daly, 2011).

    It is observed that organizational culture is the most important factor that influences the management of outsourcing. It is suggested that during the negotiation of an outsourcing contract, the manager should always consider the cultural factors. In some culture like the culture of Arabia, India and Asia, people place great emphasis on their pride, reputation and tradition, and value ...

    Solution Summary

    The expert examines patient protection and Affordable Care Act (PPACA). The response addresses the query posted in 1092 words with APA references.