Working with Third Party Administrators of Health Insurance

How to find and manage third party health insurance effectively

Health insurance third party administrators are available to provide a range of services to your small business and its employees. Many third party administrators of health insurance that offer individual health care plans also offer small business plans, while others have plans for larger businesses and corporations. Your location and the number of employees will dictate the plans available to you from a healthcare TPA.

When working with third party administrators of health insurance, it is important that you know your own roles and responsibilities for providing healthcare to your employees and for working effectively with a third party administrator.

1. Get tips and advice for managing a small business health plan.
2. Learn about your responsibilities as an employer when dealing with a healthcare TPA.
3. Compare quotes from a number of health insurance third party administrators.

 

Be prepared when searching for a health insurance TPA

Know what to expect from third party health insurance, as well as services you do and don't absolutely need from your insurance provider. While providing good coverage is valued by employees, it is also important to consider employees that might rather have extra money added to a paycheck than above average healthcare coverage. When working with a TPA, know your bottom line needs as well as your preferences for group plan rates and coverage.
Try: My Own Business offers do's and don'ts of insurance for small business, suggesting that employers establish a flexible area of expectations for healthcare coverage within which to work with TPAs. The Health Care Blog also offers advice to employers managing third party health insurance health plans.

Understand your responsibility to find a healthcare TPA

Third party health insurance is increasingly becoming mandatory for some business sectors to provide their employees. In some cases you may be held legally responsible for providing third party benefits and ensuring employees are knowledgeable about their coverage, but it is always a good business practice to make sure your employees are informed about their rights and the existing regulations.
Try: The U.S. Department of Labor provides links to legislation online and a site for helping employers understand employee health benefit regulations. The U.S. Chamber of Commerce also offers up-to-date information about the regulation of small business health plans. When working with third party administrators of health insurance, be aware of initiatives such as COBRA that ensure health plans can be bought by not just full-time employees, and make sure your TPA will be in compliance with these laws.

Compare quotes on third party health insurance before you buy

When looking for a health insurance TPA, make sure you shop around to compare plans and rates. Fine distinctions or large discrepancies may exist between plans, especially for businesses with fewer than 20 employees. Make sure you speak with at least five different TPAs to discuss the specific needs of your business before you agree to a coverage plan.
Try: The Small Business Health Insurance Network provides free quotes from leading providers and guides for small business health plans, so that you can have a basic idea of coverage and rates by state before working with third party administrators of health insurance. You can also get quotes and read about plans directly from small business TPAs like United Health Care and eHealthInsurance.

 

• When looking for health insurance third party administrators to serve your business, ask about and consider the industries typically served by each provider of TPA health insurance. By working with a TPA that has already served other companies in your industry, you can have more assurance that your specific needs will be addressed.

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