The Benefits of Third Party Administration

If you own or operate a business, you’ve probably considered the pros and cons of doing it yourself vs outsourcing many times. Whether the need in question is cleaning the office or marketing your business, you must analyze your core competencies and decide if doing it yourself or outsourcing it will result in the higher return for the lowest possible cost.

What about your insurance needs?

If you choose to go from fully-insured to self-insured, you and/or your business take on fiduciary responsibility. This comes with a plethora of new tasks, documentation requirements, risks, and legal responsibility that your HR department may not have the time or necessary resources to handle. For instance, managing insurance plans without a fully-insured carrier require a Preferred Provider Organization (PPO) network of providers, hospitals, and doctors to negotiate terms and discounts. Then, you must pay the network a set cost per employee to have access to these discounts. After all of that, you still need to manage any insurance claims filed or benefits utilized by employees.

This is where a Third Party Administrator can help…

TPAs are prepared to handle a business’s daily and ongoing insurance related needs. These needs range from tasks like digitally filing eligibility statuses to acting as or providing a benefits manager to maintain up-to-date employee benefits records. Third Party Administration services provide peace of mind by managing resources, plans, and partners. A third party administrator’s goal is to select the best insurance solutions for your company. TPAs can also mitigate your financial liability by setting a cap for maximum liability, helping you develop a budget for your plan, and making sure that you are covered in case of unforeseeable circumstances.

A few of the benefits businesses can receive with a TPA include:

  • Comprehensive administrative tasks
  • Development of essential company reports
  • Maintenance of important company records
  • Reduction of regulatory & financial risks
  • Increased internal efficiency
  • Insight and expertise on the ACA and PP
  • Legal compliance
  • Ability to offload work to experts
  • Reduced fiduciary responsibility
  • The relieved burden on internal staff
  • Up to date databases providing your members with contact information for healthcare professionals
  • Information on symptoms, treatments, and proactive prevention

 

Each organization has a different situation with different needs. Contact McInturff, Milligan & Brooks via the form below or at (423) 639-5171 for a customized insurance quote that fits your business and your budget.

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