How Third-Party Administrators (TPAs) improve insurance operations
Many businesses turn to third-party administrators (TPAs) streamline insurance operations. Hiring TPAs is a way to outsource claim processing for more effective results, saving time and money on insurance operations.
Let us discuss how TPA’s enhances insurance operations – but first things first, what does a TPA do?
What is a TPA?
There is no one-size-fits-all TPA for every business, so it is important to understand why a company needs a third-party administrator.
TPA’s process insurance claims and employee benefit plans on behalf of another organization. Third Party Administrators take part in billing, customer enrollment, and other day-to-day operations.
They also manage paper trails to make claims processing smooth and mediate between the employees and the insurer.
In addition, Third Party Administrators deal with their fair-share of headaches due to companies having multiple data entry systems.
Let us learn how technology fixes issues insurance companies face with claims processing!
TPAs Manage Data from Multiple Systems
Here are some of the most common problems TPAs experience resulting from managing data from multiple systems:
- Dual Entrees
Due to managing data from multiple systems, TPAs must input data more than once. Manually inputting data multiple times results in a loss of time and an increased risk of errors in keying the data.
- Lack of Automations
One of the benefits of technology is using automation to complete repetitive tasks freeing human assets for more complex tasks. When companies use multiple systems, automation is often not possible because so many systems are involved.
Operating multiple systems leads to confusion and misunderstandings. It is difficult to track which system has been updated, which needs to be updated, and what duplicate metrics are being tracked. The overload of data makes understanding the output difficult.
- Compliance Errors
Processing several claims manually is likely to incur human errors. Errors in compliance are costly and dangerous, compliance software solutions can mitigate that risk.
Benefits of Using TPAs in Insurance Operations
When considering the problems TPAs face daily, technology is an obvious solution for reducing time spent on operations and streamlining insurance claims. Improvements are related to using dedicated software for processing insurance claims and conducting insurance operations.
TPAs use claim management software for the following benefits:
- Unifying Databases
A unified database solves the problem of duplicate data input and reduces processing times.
- Automating Processes
A dedicated claim management system gives TPAs the ability to set smart triggers and automate parts of the management process.
- Improving Communications
Information and client data in one place means less confusion and more efficient communication during processing.
- Achieving Compliance
Dedicated software gives TPAs fewer items to review manually, to free more time for compliance. Software can even detect and alert clients to changes in compliance status.
Technology improves the Claims Process
Technology is the insurance industries’ greatest ally for compliance, processing, and operations. Insurance technology makes the insurance processes faster, more efficient and provides more reliable data than manual entry.
See how claim management technology is a superior solution for TPA’s yourself! Schedule a demo today.