When selecting a Third Party Administrator or TPA, you'll want to be very clear about the services that are covered by the administration fee.
Some of the services typically included in a full-service TPA agreement are:
- Management of employee inquiries
- Accurate claims adjudication
- Financial accounting and reporting
- Tax remittances
- Adherence to CRA regulations
- Employee communication materials (ie. benefits booklets, announcement memos, etc.)
- Support of the client's internal plan administrator
When comparing TPA fees, it is important to understand if your administration costs may be impacted by other charges.
Ask if there are separate per-claim fees or other service fees in addition to your agreed upon standard fees.
