A TPA (Third Party Administrator) can help manage all the logistics of general retirement plan and health services, so employers can concentrate on what they do best. Changing a TPA gives an opportune time for company executives to improve their vendor service road map and solicit extra worker compensation claims which were not addressed and satisfied by their legacy third party administrator. In general, TPA’s will meet your new customer requests on everything that lies within their scope of service.
Upon changing your TPA you’ll be forming a close, legally bound relationship with an associate who will have access to your assets. The success of the relationship will depend to a great extent on how much you know about your potential partner and how aware you are about your own situation before you begin.
However, there are many other transition circumstances and budgetary issues for businesses wanting to change their TPA’s. There are also expenses to consider, for example, expenses paid simultaneously to two TPA’s, including charges for continuing to access data supervised by the legacy TPA and for the legacy organization to keep running off existing claims.
The list of questions you should ask your potential TPA’s could be expanding because there’s more to know about TPA’s today than in the past. Once these companies were limited by simple claims administration and now they provide a much wider range of services.
Each employer hammers out their custom arrangement with a TPA, which can perform as many or as few tasks as delegated by clients. A TPA can help with insurance plans structure, oversee claims administration, ensure compliance with government guidelines, review how employees utilize their health plan, arrange participation in preferred provider organizations (PPOs), run timely updates to plan records, and prepare documentation to explain healthcare benefits to employees.
Many companies hire brokers or consultants to assist in their TPA search, making companies spend a lot of money for information that’s often available directly from the TPA. Regardless of your choice to hire a 3rd party to assist you with a TPA search, you should definitely do your homework before tying the knot. NTSA’s guide about Changing your TPA will help out employers on their quest for better TPA with a list of best practices and recommendations – make sure to take a look here – https://www.ntsa-net.org/news-resources/changing-your-tpa