Third Party Administrator (TPA)

A Third Party Administrator (TPA) is a third party hired to perform a service for a client. TPA services include billing, claims adjudication, and payment processing. There are many reasons that an employer hires a TPA to handle billings and claims. The most common reasons are the large volume of shares, the cost of paying claims manually, or the desire to standardize claim payouts across different markets segments within an employer’s overall business.