Third Party Administrator (TPA)

What is a Third-Party Administrator (TPA)? #

A third-party administrator, also known as TPA, is an organization that provides administrative services to insurance companies, self-insured firms, and other entities that require assistance with managing their insurance plans. These services typically include processing claims, handling customer service, ensuring regulatory compliance, and managing various operational tasks. By outsourcing these responsibilities to a TPA, companies can streamline their operations, reduce administrative burdens, and focus on their core business activities. TPAs are essential in maintaining efficient and effective insurance operations, offering expertise and resources that may not be available in-house.