What is TPA?

TPA stands for Third-Party Administrator. A Third-Party Administrator (TPA) is an organization that processes insurance claims or certain aspects of employee benefit plans for a separate entity. TPAs handle administrative tasks such as claims processing, enrollment, and customer service, allowing employers or insurance companies to focus on other core business functions. They are commonly used in healthcare, workers' compensation, and other insurance-related industries to streamline operations and reduce administrative burdens.