Third-Party Administrator (TPA)

[θɜ:d pɑ:ti ədˈmɪnɪstreɪtə]

This is a type of organization, which is responsible for the administration of insurance for a self insured group. The TPA is however, not responsible for paying claims. 

The use of third-party administrators is now common in many organisations, and the range of tasks they undertake is growing.

Some firms are moving into new areas such as :

  • employee's compensation audits
  • emergency response planning
  • employee well being 
Part of speech:
Use in a sentence:
We might need the help of a third party administrator.
Third-Party Administrator (TPA)