Health care reform and the related compliance complexity are causing more employers to consider outsourcing the benefits administration, according to a new survey from ADP, a provider of human resources management, payroll and benefits administration services.

Of these respondents, 45 percent of respondents in mid-size companies and 54 percent in large companies cite that regulatory changes have led them to become more likely to outsource some or all of their benefits administration. Ensuring compliance is one of the primary reasons respondents outsource benefits administration at 54 percent of mid-size companies and 49 percent at large companies. Respondents also say they do so in order to rely on subject matter knowledge and expertise at 50 percent of mid-size companies and at 41 percent of large companies as well as to cut the administrative burden on internal staff at 43 percent of mid-size companies and at 50 percent of large companies.

"It's likely that outsourcing will become more common as compliance becomes increasingly complex with new health care regulations in the mix," says Tim Clifford, president of benefits services at ADP. "Our study shows that many employers view outsourcing as a viable option to help them successfully cut through this complexity."