Benefit Administration Outsourcing

Proview Global

Benefit Administration Outsourcing

Benefit Administration Outsourcing


As companies turn to business administration outsourcing (BAO) for more and varied functions, the vendors’ presence becomes more apparent to the employee end-user. Companies that in the past may have partnered with BAO providers for behind-the-scenes functions—such as open enrollment support or summary plan description creation—are increasingly using the vendors as employees’ major point of contact for all things benefits-related.

BAO in the U.S. was a $6.1 billion industry in 2012, according to a report by the Everest Group, an outsourcing advisory firm. Despite being among the most mature HR outsourcing markets, BAO saw a 13 percent annual growth rate, driven in part by health care reform compliance challenges.

There can be added value for both the employer and employee with BAO, particularly for functions that are administratively burdensome or highly specialized, such as dependent eligibility audits. Participants recognize the cost savings that their company will reap when eliminating those who should not be enrolled in the program—savings that can be passed along in the form of smaller future increases in cost sharing.

- See more at: Proview Global