The third party administrator (TPA) is a vital part of the insurance industry. Third party administrators are responsible for processing claims from an insurance company that does not process its own claims for a variety of reasons. Third party administration can handle insurance claims for a number of different insurance types, including healthcare and retirement accounts.

If you are a third party administrator or want to find out more about what third party administrators do, resources that provide news and industry trends are the best place to start. You can also find specific third party administrator resources, such as retirement plan TPA information, through the following sources:

1. Magazines and journals for the insurance industry.

2. A forum or blog where third party administrators answer questions.

3. Organizations that provide additional industry information.

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Join organizations to get info on third party administrators

There are many organizations that cater to healthcare third party administrators, as well as TPAs throughout the insurance industry. Many organizations also offer newsletters you can subscribe to for more up-to-date information.

I recommend: The Healthcare Administrators Association is an organization that can give you plenty of information and news on TPA. The National Association of of Third Party Claim Administrators (NATPCA) is another group that provides of all kinds with updates on the industry.

Read trade publications for healthcare and retirement administrators

To dive deep into insurance and pension TPA news and trends, subscribe to trade publications that cover these issues exclusively. This gets you insider's information about what's new in administration, and how many businesses rely on this service to help process their insurance claims.

I recommend: Business Insurance offers a newsletter that provides information on topics across the insurance industry. It also puts out a directory of third party administrators, in addition to informative articles and webinars. Insurance Journal can provide you with the latest news from the insurance industry, including what's up with third party administrators.

Connect with third party administrator experts online

Online resources can offer you a lot of solid information about third party administrators, but it can also give you the opportunity to talk with TPAs themselves or TPA experts who know the business inside and out. Resources like blogs and forums can connect you with professionals in real time.

I recommend: Workforce Management provides a forum where professionals can discuss a variety of topics, including TPAs, how to hire administrators, and what you should look for in a TPA. AllMed Healthcare Management hosts a blog that covers many topics in the medical insurance industry, including news and trends on the costs of healthcare third party administrators.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  If you're in the market for a third party administrator, be sure to choose one that's familiar with your insurance needs. TPAs may specialize in putting together plans for small businesses, non-profits or organized labor.

Third Party Administrators develop custom retirement plans for your business. Unless you own a large company with the appropriate personnel, you should hire a retirement plan TPA to handle your employee 401(k) plan. Their expertise helps ensure that your pension plan grows and provides a real benefit to your employees.

Take your time in selecting a 401(k) Third Party Administrator; you want to find a pension TPA with which you can establish a long-term business relationship. After all, you're talking about your employees' financial security. Expect to go through these phases when working with a Third Party Administrator:

1. Consult with the TPA about your needs for tax-deferred plans and employee retirement and savings benefits.

2. After the consultation, ask the pension TPA to provide you with a proposal of the types of plans suitable for your company. Ask to see all provisions, including penalties and vesting schedules.

3. After selecting a 401(k) Third Party Administrator, they will get IRS approval of your plan, provide all necessary employee paperwork, and work with you to get your employees enrolled.

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Work with one of the larger, national pension TPA companies

You've probably seen insurance companies advertising their retirement plan services on TV. With a large company you get experience and expertise. However, you may also end up with a larger bill for plan administration.

I recommend: CitiStreet is one of the top companies in benefits administration. ADP Retirement Services offers a full service retirement plan TPA.

Choose specialized retirement administrators

Some companies work solely in Third Party Administration. With one of these smaller companies, you often have more options in selecting a 401(k) provider.

I recommend: Pension Specialists offer a variety of services including their flexible 401kMAX plan. Look to CompuPay for expertise and a wide range of retirement plan third party administration services.

Look for Third Party Administrators who do business in your state

The Internet makes it easy to locate a list of Third Party Administrators which are licensed in your state. You can do a quick comparison online and then call only those companies that offer the services you need.

I recommend: The 401kExchange provides a provider directory and ratings of plan providers. The information is free but you'll need to register with the site to access the lists. TPA Connection allows you to search by state. Click on your state and a list comes up showing Third Party Administrators who do business in your state; the list includes how long the company has been in business and a guide to the services they provide.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Once your Third Party Administrator has all the paperwork for your plan, you should ask your company attorney to review all documents.
• •  Don't think 401k TPA is only for large companies. Many retirement plan administrators work with companies with as few as 25 employees.

A third party administrator can manage a variety of services, including 401(k), healthcare and other types of retirement plans. Third party administration responsible for processing insurance claims for the company that hires them. This is usually much more convenient for most businesses, especially if they have a lot of workers with pensions or 401(k) programs.

Knowing what you need before hiring a healthcare or 401(k) TPA is important for developing a good working relationship. Ideally, a third party administrator will work with your company for an extended period of time. Working with third party administrators will require you to decide on the following:

1. What types of services you will need from a third party administrator.

2. How much control you want to hand over to the TPA.

3. Whether you want to hire a TPA for one particular service, or hire a company that can process a broad array of insurance claims.

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Hire a 401k third party administrator the fits the size of your business

A retirement plan TPA is an important service you have a lot of retirees to manage, but cannot afford to keep a staff just for this purpose. A TPA will also be able to handle claims more quickly and efficiently for the sake of your retirees.

I recommend: ADP is among the best known TPA companies. It's equipped to work with larger businesses to handle their retirement needs. BNet provides a great article on tips for picking a TPA for your business. CCH also lists some qualities to look for in a third party administrator.

Find a list of third party administrators in your local area

When searching for the right retirement administrators, find a company that works in your area. This way you'll have more opportunities to talk to administrators before you buy their services, and the people who receive benefits will get more personal attention.

I recommend: TPA Connection provides you with an advanced search option that allows to you search by state, ZIP code, and also by the specific services that you need. In-T-Great is an organization that provides California third party administrator services.

Choose a medical third party administrator to take care of insurance claims

Bigger businesses can also benefit from using third party administration services to manage their healthcare plans. TPA services work through even the most difficult claims and work directly with employees to get claims processed. A service can manage all your cases, review claims and bills, plus offer your company comprehensive reporting so you can stay on top of the situation.

I recommend: CorVel offers many medical TPA services for your business, including bill review, reporting and case management. NGS American provides all the same services, plus fraud and abuse protection. This helps both the employer and those who make honest claims.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  If you decide to hire a healthcare third party administrator for your business, you may also be able to hire a TPA that handles workers compensation claims as well.

Third party administrators are a type of human resources consultant that provides outsourced services for processing claims from an insurance company when a business has chosen not to do so within the organization. Usually the services can be provided more economically. This is a highly complex function that most businesses may not have the infrastructure or resources to do themselves. By purchasing these services, the business can expect that any liabilities will be reduced because the consultant is responsible for staying up-to-date on federal and state regulations related to this function.

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401(k)

A 401(k) plan is a retirement plan that is designed to help employees prepare for retirement by allowing them to save some of their earnings while postponing income taxes. In this plan, the employee is permitted to have some of their wages 'deferred,' and set aside in a 401(k) account. Third party administrators are invaluable in helping companies manage these plans.

I recommend: There are many rules related to these types of plans. For a comprehensive guide to them check out Job-Employment-Guide.

Defined contribution plan

A defined contribution plan is legally defined as a plan that provides an account for every participant and is based exclusively on the amounts the individual contributes with income, gains, losses and expenses being added or subtracted according to the performance of the plan's various elements. Third party administrators keep up-to-date on the various types of investments and plans that are allowed by regulation.

I recommend: For a more detailed explanation of a defined contribution plan see StreetAuthority.

Unbundled plan

An unbundled plan or cafeteria plan is a service model offered by third party administrators that is usually custom designed to allow businesses to pick and chose which services they want or need in employee benefit plans.

I recommend: Pensions specialists has a good description of the various services unbundled plans offer.

Annuity products

An annuity is an insurance contract in which a life insurance company (most typically) makes payments in the future to a buyer or annuitant in return for a lump sum payment or a series of regular payments before the onset of the annuity. The payments to the annuitant are based on the lifespan of the individual and are one way to provide income during retirement.

I recommend: For a list of the various elements of a type of plan referred to as a variable annuity, see Vangard Group.

Exchange-traded fund

An exchange-traded fund or ETF, is a term known by third party administrators as a type of investment that is traded on the stock market similar to stocks.

I recommend: This is a complicated subject; a more detailed definition of ETFs can be found at InvestorWords.com.

Assets under management

Assets under management or administration is a term used by financial services companies and is the value of all the assets that an investment management, mutual fund or money management fund administers and manages for its customers. Third party administrators are typically the manager of the portfolio of the assets in these types of funds.

I recommend: A more "plain English" definition of assets under management can be found at Investopedia.