True Independence
Most employers with more than 100 employees have found tremendous financial value in utilizing a self-funded health insurance plan instead of purchasing a fully funded plan the way a smaller business would. Whether it’s a business with 100 or 100,000 employees, they will contract with a Third Party Administrator (“TPA”) to provide a number of services, including the processing of claims, for that self-funded plan. The largest health insurance companies charge administrative fees that are typically 20–30% higher than a truly independent TPA. This is validated every time an independent TPA is included in the process to bid for services.