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What is a Third Party Administrator (TPA) for Employee Health Benefits?

Written by: JD Cleary
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Originally published on February 7, 2012. Last updated July 7, 2015.

A Third Party Administrator (TPA) for employee health benefits is a person or organization that performs administrative services (e.g. claim processing, adjudication, record-keeping), usually on behalf of an employer that self-insures health benefits. third party administrator tpa

Most TPAs operate as an entity independent from the health insurance carrier and the insured (employees or plan participants).

Currently, more than 40 states have a TPA licensing requirement and several more have similar minimum requirements.

 

 

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Originally published on February 7, 2012. Last updated July 7, 2015.
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