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Third Party Administrators or TPAs are companies that manage certain aspects of employee benefit plans for other groups like employers. They help with tasks like processing medical claims, providing customer service support to employees, and negotiating rates with providers on behalf of clients. Here are some frequently asked questions about Third Party Administrators in your area:
TPAs typically offer services like claims processing, customer service support, utilization review, provider networks, wellness programs, reporting, compliance support and more. They take care of the administrative burden so employers can focus on their business.
You can search online for "Third Party Administrators near [your city/state]" or ask for referrals from other businesses in your industry. Checking review sites can also help you compare options in your local area.
Consider their experience level, specific industry expertise if relevant to your business, reputation and reviews, available plan options and pricing. Ask about service response times, online tools and resources as well.
TPA fees usually range from around 3-5% of total plan costs depending on the number of employees covered and services included. Additional fees may apply for ancillary services like wellness programs or custom reporting. Get quotes from several providers.
TPAs take on much of the complexity and risk of self-insuring. This allows smaller businesses to offer competitive benefits while avoiding large fluctuating claims costs. TPAs also have experience negotiating better rates than most small employers.
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