A Third Party Administrator (TPA) is an organization that manages employee group benefit plans on behalf of an employer. A TPA can provide more cost-effective and flexible group insurance administration for small and mid-sized businesses than larger traditional insurance carriers can – in some cases saving as much as 20% in admin fees.
However, it’s important for business owners to know that not all TPAs are created equal.
For example, the Financial Services Commission of Ontario recently issued a $50,000 penalty on Platinum Health Benefits Solutions Inc., and consequently the company decided to close its business on December 31st, 2017, causing significant disruption for its clients.
In order to help business owners mitigate risk and avoid choosing the wrong TPA, many years ago, we put together a handy guide: How to Choose Your TPA. This guide provides 16 questions you should ask any TPA before making a decision. Given recent development, this is even more important today.
Here are a few of the key questions from the guide:
- What services do you provide in-house and what do you contract out?
- Do you provide a written agreement that outlines all financial terms, services, and fees?
- Do you provide regular financial reporting with a breakdown of claims paid by type of claim?
To find out the rest of the questions, along with why they’re important, check out the guide now!
A TPA is often the most advantageous option for small and mid-sized businesses – and choosing a reputable TPA is just a matter of knowing what to look for and asking the right questions.
The Benefits Trust helps successful business owners build a better benefits plan than they can get anywhere else. Get in touch with us today!
You may also be interested in:
- Can I Offer Benefits for Employees over 70?
- Hybrid Benefit Plan Design – What’s Your Spot on the Line? [Video]
- Sanofi Healthcare Survey Reveals Canadians Want More Flexible and Integrated Health Benefit Plans
- What the CLHIA’s Withdrawal of Guideline G19 Means for Transparency - July 10, 2019
- The Benefits Trust Is Celebrating its 25th Anniversary - January 21, 2019
- Season’s Greetings! See Our Holiday Hours - December 17, 2018
- Selling Benefits Plans to Religious Organizations, Not-for-Profits, Charities, and Other Special Interest Groups - February 23, 2018
- OHIP+: New Benefits for Children and Youth Coming January 1, 2018 - December 19, 2017
- Happy Holidays! See Our Seasonal Hours - December 11, 2017
- Battling Benefits Fraud: How Advisors Can Help - October 26, 2017
- Common Benefits Advisor Problems: Pricing Pandemonium - October 4, 2017
- Buyer Beware: Choosing a Third Party Administrator for Benefits Plans - September 21, 2017
- The Benefits Trust App: Features Update - June 13, 2017