The vast majority of self-funded employee benefit plans use professional Third Party Administration (TPA) firms. “TPA” is another word that gets over-used, under-used and misused. Most employers & plans want a TPA that has broad knowledge and offers comprehensive services.
TPAs’ experience not only helps save dollars and maximize personalization for the coverage and the Stop-Loss, but TPAs are also on the cutting edge of government compliance. Because TPAs service the largest portion of Americans with employee health coverage, and because the clients are in every size & format of employment, they have uniquely large & broad perspective. Consequently, TPAs have earned a respect and role as real-world experts who are relied on by legislation drafters and especially those who interpret laws and write regulations. Every year there are dozens of unworkable laws and requirements that get eased or even eliminated thanks to discussions with industry associations and TPAs. This means that working with a TPA is like getting an experienced guide to help you through the jungle of laws and regulations which impact all kinds of health plans.