The video discusses third party administrator details in healthcare. It also discusses self-insurance and what that means to people.
Self-insurance is when a person manages their own insurance expenses. A third-party administrator is a company that an employer pays to manage the healthcare policy for its employees.
This third-party company does a number of tasks for the employer to save money and time. One main duty of a third-party provider is to process claims whenever employees make them.
This company may also be responsible for signing up new members and applicants for the employer. Managing COBRA signups for employees who have left the company may also be a responsibility of such a party. The employer saves money on these types of arrangements because they only have to pay for medical claims that their employees have. The money that doesn’t get spent on healthcare stays in the company’s possession for other purposes.
There are three different types of third-party administrators. One is an independent one that stands alone. There are also hybrid companies that use a PPO and ASO types. TSA companies have to follow a vast number of regulations to stay in compliance. Therefore, employers must seek a reputable company of this type to handle their workers’ claims.