Navigating The Complex World of Health Insurance: Evaluating Your Third-Party Administrators
Mitch Bearden
You're spending too much for health insurance, leaving money on the table because your plan is designed to lose. We redesign your health plans to save money today and control cost moving forward.
When it comes to managing your company's health insurance budget, partnering with the right Third-Party Administrator (TPA) in your self-funded health insurance plan is pivotal. You need to know they have your back. But, are you doing enough to evaluate this partnership?
The Common Oversight
Too often, companies rely solely on their brokers' recommendations when selecting a TPA. This approach, while convenient, overlooks critical questions: Who really owns the TPA? What are their funding sources? Is it a stock-owned company? These aspects are vital, as they can reveal potential misalignments between your company's goals and the TPA's incentives.
The Consequence of a Superficial Evaluation
Settling for a TPA without a comprehensive evaluation can lead to partnerships with misaligned incentives and entities whose systems are outdated, inefficient, and incapable of meeting your evolving needs. The result? You're not maximizing the value of your health insurance budget.
A Thorough TPA Evaluation: Key Considerations
When completing a thorough evaluation of TPAs, key considerations include:
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Conduct Independent Research: Don't rely solely on broker recommendations. Dive into the TPA's financials. Visit their sites. Seek references from their other clients. This firsthand information is invaluable and will give you the confidence you’re making the right decision.
Assess Future Readiness: Investigate how the TPA plans to upgrade their systems over time. Will they be able to adapt to your company's growing and changing needs? Your TPA should be a partner in progress, not a hurdle stuck with outdated system and design limitations.
Team Dynamics: Determine if you'll be working with a local team or one that's offshore. The location of the team can significantly impact communication, response times, and overall service quality. This is why a site visit is warranted.
How We Can Help
As a health insurance consultant, we understand the intricacies involved in TPA evaluations. Our team takes this burden off your shoulders, ensuring a thorough, detailed, and accurate assessment. We help you see the complete picture, enabling informed decisions that align with your company's health insurance objectives and your bottom line.
A comprehensive evaluation of your TPA is not just a recommendation—it's a necessity. Your company's health insurance strategy deserves nothing less than a partner who is as committed to your goals as you are.