third-party administrator (TPA) is an organization that processes insurance claims or certain aspects of employee benefit plans for a separate entity. 

TPA is also a term that’s used to define organizations within the insurance industry which administer other services, these can include underwriting or customer service. This is often viewed as outsourcing the administration of the claims processing, since the TPA is performing work that’s traditionally handled by the insurance company providing or the company itself.

In this video, we’re talking to Emma Passé from EBMS. Emma discusses exactly what a TPA is and how third-party administration can lower your employer-sponsored benefits costs while increasing benefits options.

TPA In Healthcare

Third-party administrators play a key role in the health care industry and have the expertise and capability to administer all or a portion of the claims process. They are normally contracted by a health insurer or self-insuring companies to administer services, which can include;

  • Enrollment
  • Claims Administration
  • Premium Collection
  • Other Admin Activities

A hospital or provider organization desiring to set up its own health plan will usually outsource certain task to a third-party administrator as needed.

Want to learn more about employee benefits communications? It’s “key” that your employees fully understand the benefits you provide to them. Here at Kadalyst, we can help you “communicate” that to your whole company. You can reach us at 503-512-5175 or through our contact form.

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