What is the Characteristics of a Third Party Administrator in Health Insurance Policy?

Third Party Administrator

This blog will concentrate entirely on TPAs, their meaning, roles, and so on so that you are familiar with one aspect of health insurance before moving on to learn more and make educated decisions when purchasing and renewing health insurance plans. Continue reading to learn more about third-party administrators in the health insurance industry.

A TPA in Health Insurance is a company that handles insurance claims that are covered by the Health Insurance. In general, these administrators are self-contained, although they can sometimes function as an agent for the insurer. Insurance Regulatory and Development Authority issues licenses to these organizations.

What does Third Party Administration do?

A TPA is in charge of processing a health insurance claim as soon as the policyholder informs them. TPAs might opt to develop their own services to guarantee that services are delivered in a consistent manner. Their duty also includes checking all of the policyholder’s documentation properly and carefully, as well as obtaining as much information as possible.

When a claim for hospitalization is made, the policyholder is directly responsible to the TPA. The insurance company provides the patient with an ID card and a unique policy number, which aids in claim settlement. When it comes to obtaining hospitalization coverage and processing claims, the TPA in Health Insurance serves as a conduit between the insurance company and the policyholder.

The insured and their dependents should receive health cards/e-cards

A TPA must authenticate every policy. The method is carried out by checking the health cards/e-cards that contain information on the policyholder, his or her dependents, the TPA in charge of claim processing, and the policy number. A policyholder can flash these cards to the hospital’s insurance desk at the time of admission, ensuring that the TPA or insurer is aware of the situation and can prepare accordingly.

In this situation, the policyholder will notify the insurance company of the hospitalization and the necessity for treatment. If the hospital falls within the insurer’s cashless network, the claim would be processed within the same day. In case it’s not, the policyholder will have to pay for the treatment but caan  get it reimbursed once he/she is discharged from the hospital.

Extend or improve existing value-added services for policyholders

Aside from claim processing, a Third Party Administrator is also responsible for informing policyholders about health insurance and improving services to guarantee smooth service delivery. They also arrange for additional services that a client may want, such as ambulances, emergency help, and well-being programs, among others. The policyholder goes to the hospital as soon as he or she needs medical or emergency treatment. A claim is considered only if the individual is asked to be hospitalized for at least 24 hours, unless you are going for a daycare procedure.

The TPA in Health Insurance will examine the bills and other documentation before allowing the claim to be settled. If you don’t have any cash, you’ll have to pay the hospital. However, the policyholder will be reimbursed for his or her costs through the insurance company.

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About the Author: Zunair Maqbool

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