Question

cost control strategies for self funded health plans for third party adminstrators

Answer 1

Third party administrators(TPA) are organisations who manage the health schemes of the employees on behalf of their employer. They provide expertise in development and implementation of health schemes appropriate for an organization.The benefits of TPAs are competitiveness as large groups are able to negotiate during new contacts and their renewal. Another benefit is the plan sustainability and cost containment when compared to dealing directly with an insurance company. They can also add new employees to the plan without disrupting the functioning of the organization and its members. TPAs also helps to reduce the risk and financial exploitation in hospital organizations using fraudulent claims. They simplify,manage and administer information for their affiliated organizations and reduces the health care expenditure on self funded schemes.When the schemes are running successfully, adequate revenue will also be generated with a healthy and productive work force.