9 Helpful Steps in Selecting a Third-Party Administrator (TPA) One of the most important decisions a company makes is deciding who will handle their workers' compensation claims. Depending on your insurance arrangement, an in-house insurance company or a third-party administrator can handle your claims – selecting the best one possible for your company is key in keeping costs down. Price and flexibility are both considerations in choosing to use a TPA. If your company integrates its disability programs, for example, (where sick leave is combined with short- and long-term disability) your insurance company may not be willing to handle the extra paperwork. Usually, ultimately, it's less expensive to buy the BEST claims handling service rather than the cheapest. Consider the following: 1. Who is the team that will service your account? 2. Has this TPA handled claims in your industry before? 3. Does the TPA proactively ensure internal quality control and correct any problems when they arise? 4. Do adjusters receive ongoing training to learn new laws, to fine-tune their expertise and learn new techniques? 5. Is there a Medical Director to provide updated occupational illness and injury medical information to adjusters? 6. Are specialists available to handle the most complex claims? 7. Does the TPA have an intake service, or will you have to supplement their service with an outside firm? 8. What medical management services are used? Are services well integrated, in-house services or outside services? (workersxzcompxzkit) 9. Do they have established relationships with investigators nationwide to use in all locations? Please note that these are just a beginning list of questions to ask a potential TPA. For more information, contact Workers' Comp Kit (http://www.workerscompkit.com/) or your insurance broker or agent. Author Rebecca Shafer,executive vice president, Amaxx Risks Solutions, Inc. has worked successfully for 20 years with many industries to reduce Workers' Compensation costs, including airlines, health care, manufacturing, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. He can be contacted at: [email protected] or 860-786-8286.
More FREE tools to try: WC Calculator: www.reduceyourworkerscomp.com/calculator.php TD Calculator:www.ReduceYourWorkersComp.com/transitional-duty-cost-calculator.php WC 101: www.ReduceYourWorkersComp.com/workers_comp.php Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker about workers' comp issues. ©2008 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact [email protected]
