Definitions for "Third-party administrator"
A service provider engaged in the performance of administration, clerical and managerial functions related to insurance policies or employee benefit plans.
Claims administration service conducted by entities specializing in the management of self-insured benefit programs. The TPA may collect premiums, determine employee eligibility, determine covered services, pay claims, prepare management information reports and provide other administrative services. The TPA is often able to provide reinsurance brokering, cost containment programs, and a full range of employee communication programs. Insurers may sell administrative services to self-insured employers, but this is described as "administrative services only."
A TPA may collect premiums, process claims, or provide administrative services for a benefit plan.