Health Insurance Daily

Flexing Their Muscles: TPAs Serve Up Flexibility For Midsize Employers

Despite recent acquisitions and a push for more high-tech solutions, third-party administrators still believe the middle market craves flexibility and highly personalized service.

"For middle-market employers, the large health insurance and managed care companies - such as Blue Cross and Blue Shield, United, Cigna and Aetna - tend not to offer much flexibility with their services," says Elliot S. Cooperstone, CEO of Prodigy Health Group, Inc., a health services holding company, specializing in benefits management. "Moreover, the service level they tend to offer midsize employers is varied," he adds.

Industry analysts generally define the middle market as employers with 200 to 5,000 workers. About 52% to 55% of nonfederal U.S. workers with health employee benefits are in plans using some degree of TPA, according to the Society of Professional Benefit Administrators.

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posted by Mike @ 10:01 AM