5 ways to work better with your TPA

The relationship an organization builds with its health insurance third-party administrator (TPA) is one of its most important. That relationship has the power to help the business reduce medical costs, and pair employees with providers that can help them live a healthier life.?

The key to maximizing those benefits is knowing how to build a trusted relationship with a TPA. The right partnership can help organizations take control of their health insurance plans, lessen administrative burden, and optimize health outcomes for their employees. If you’re looking to either start working with a TPA or to want to improve a relationship you already have, here’s my advice.

Choose the right TPA

There are more TPAs on the market these days, and they’re not all created equal. Evaluate your options carefully, considering their experience, expertise, reputation, cost, ownership, and track record for success.?

Know what you want to get out of the partnership

Employers should clearly define their goals and expectations for working with their TPA. Make sure you’ve identified objectives for cost containment, employee satisfaction, quality of medical care, and compliance with federal and state regulations.

Collaborate and establish trust

It sounds cheesy, but your TPA should exhibit genuine empathy for your business and your employees. Some TPAs, like HealthComp, offer corporate culture trainings to talk about your organization’s goals and mission. Together, you’ll create a plan to identify and communicate your health plan’s intent. Corporate trainings are designed to create alignment between TPAs and employers—resulting in the best plans possible for employees.

Identify customizations

Customization is key to structuring effective health plans. You and your TPA should build the one best suited to your employees’ unique needs, which may involve balancing cost with care quality, adding a range of different healthcare options, or providing incentives to health-conscious behaviors. But customization extends to the technology, too: a tailored member portal, for instance, might make it easier for employees to access important information and navigate their health plans better.?

Oversee it together

Creating a health plan with your TPA is an act of joint stewardship—you take care of it together. Both organizations should regularly monitor the plan’s performance and uncover areas to improve it. Take advantage of your TPA’s insights and strategy support, too, to help bring both organizations closer and make your partnership more collaborative, open, and effective.

Choosing a TPA isn’t like choosing a vendor—you’re selecting a partner whose work can directly affect your employees’ wellbeing. Setting clear expectations, aligning your vision, and collaborating closely at every stage are key to building an effective relationship with your TPA.?

I’m curious: What’s your organization’s medical cost trend? Start a conversation with your broker about it, or post your reply in the comments.