Third-party Administrators (TPA)

A Third-party Administrator (TPA) is an organization that manages certain insurance functions on behalf of an employer, insurance company, or organization. They handle tasks like processing claims, managing policies, and administering benefits, ensuring smooth operations without the client needing to do these tasks directly. TPAs are especially common in health insurance and workers’ compensation, providing specialized expertise and efficiency, while the primary insurer or employer retains overall responsibility. This arrangement allows for cost-effective, professional management of insurance services, improving accuracy and speed in processing claims and benefits.