What is Benefits Administration?
The use of third-party administrators (TPAs) is one of the hottest trends in insurance today. According to the Society of Professional Benefits Administrators (SPBA) 66 percent of all U.S. workers are covered under self-funded plans, most of which are managed by independent, third party administrators. But what do you look for in a TPA? If you’re an independent agent, here are some things to consider.
Your first step is to determine the needs of your clients. Who are your target customers? And what types of workers do they have? Determine if your customers are fully insured, minimum premium or self-funded. Then, find out what size of self-funded groups they have: small (50-200 employees), mid-sized (200 to 2,000) or large (more than 2,000). This is important because TPAs that serve only large corporations may not be inclined to give proper attention to a company group of 75 employees. Employees kept waiting for insurance cards for two months after enrolling, for example, will complain to their chief financial officer or human resources administrator.
Next,determine whether your target customers are in a single state or if they are spread out. Also, find out what capabilities are important to them. Do they need a provider with online capabilities? Do they need a TPA that can provide self-service for employees? Are they looking for one that provides real-time information on claims?
Outsourcing employee benefits services is an excellent idea for businesses looking to attract skilled and experienced staff to their organization. Benefits are what any professional severe looks out for before joining an organization. They are the motivation for employees to work at the highest level of their efficiency, and facilitate higher retention of staff. Without benefits, your company loses its ability to attract the most skilled personnel and fades away in the job market. Benefits also show employees that the company values its association with them.
Benefit Administration Services
TPA Solutions - Broker Services that set us apart
We have the easiest fee structure in the industry
You have your dedicated account manager who has complete authority to make any updates and or changes. No more waiting for answers. Simple Solutions.
Our technology systems are available and work as they should. We do everything in our power to ensure you do not hear complaints from your clients. No more hearing complaints about their cards not working, or systems that are unavailable.
We do the work for our Brokers and make you look good. Plain and simple. White Label Brochures are also available for your clients.
No more worries about what your clients may think about your third party administrator. We have over 15 years of experience and you won’t hear complaints. We take care of your clients that they are part of our family.