Third Party Administrator
An organization that processes health care claims without carrying insurance risk. TPAs are prominent players in the managed care industry and have the expertise and capability to administer all, or a portion of, the claims process. They are normally contracted by a health insurer or self-insuring companies to administer services, including claims administration, premium collection, enrollment and other administrative activities. While some TPAs may operate as units of insurance companies, they are often independent. However, hospitals or provider organizations desiring to set up their own health plans will often outsource certain responsibilities to TPAs.
Variants
- TPA
