Choosing a TPA

Previous Article Index of Articles Next Article

Choosing a TPA#

Main Points to Consider#

As helpful as it might sound, there is no checklist to follow in choosing the right third party administrator (TPA) to implement your self-funded plan. That’s because an advantage of self-funding is that every plan is totally unique and every employer – whether public- or private-sector – will have different priorities for customizing and administering one.

In terms of general points to keep in mind, take note of the following:

Making Your Decision#

There’s no step-by-step approach to follow when going through the TPA selection process. Two of the main considerations are the firm’s regulatory and compliance knowledge and its capacity to personalize health coverage and medical benefits. Other important factors are the level of comfort and trust shared between the TPA and employer as well as the ability to communicate openly. Size, location and cost are also things to weigh when deciding who will administer your self-funded plan.