HR Glossary

Third-Party Administrator (TPA)

Third party administrator refers to types of organizations that administrate insurance policies for an employer, most often for a self-insured group.

what-is-third-party-administrator-tpa

Third party administrator definition (TPA)

Third party administrator refers to types of organizations that administrate insurance policies for an employer, most often for a self-insured group.

Third party administrator works with both the employer and the insurer in order to establish clear communication between the two, to process claims and determine eligibility. TPA has no responsibility for paying claims.

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