The concept of outsourcing integral components of any insurance company’s service offering demands heavy consideration. Clients may perceive this as the company forgoing control on its core functions, dwindling their confidence in the solicited delivery.
However, it’s equally essential that all parties understand what it means to outsource and its many benefits.
What is a TPA?
A TPA is an independent organisation that administers and manages functions for a separate entity to deliver those services in-house. In this case, an insurance company or corporate from any sector would appoint the third-party administrator to perform certain aspects of managed healthcare, including:
- Medical claims processing
- Employee benefit plan management and authorisation
- 24/7 Customer service operation
- Medical provider network management
When looking to outsource, you should answer these critical questions:
- How will it benefit the company and its clients?
- How to select an appropriate TPA?
- What controls are in place to give clients peace of mind that the delivery will be as promised?
Running costs and administrative capacity are broad factors to consider. The more efficiently costs are managed, the more capital there is to improve services. Likewise, the more capacity there is, the better the delivery.
Benefits of Outsourcing TPA
Does outsourcing these services truly pay off? Allow us to cover some of the benefits corporate and medical practices can gain from TPAs.
- Focus more on core expertise
It is not easy to manage the medical benefits and claims for a large group of employees and their dependents. There is often an overload of data and different expectations from each individual. The burgeoning challenges require your undivided concentration.
By providing a tailored service, TPAs can free up your capacity to focus on the main and strategic task at hand while you benefit from their expertise.
- New perspectives
As professional outsourcing partners, they help clients familiarise themselves with innovative possibilities and approach challenges from a whole new angle.
- Cost reduction
Outsourcing can have a positive impact on both technical and logistical costs and personnel costs. These include hardware and software purchases, such as operating system, protection, financial and payroll software, application programs, the works.
As a result, it also eliminates costs for technical support. Companies can prevent unpredictable costs due to the absence of an employee, illness or erroneous mistakes.
- Experience & reliability
Medilink-Global has been in the TPA industry for over 20 years, evolving from paper trail days to the highly customised electronic system today. With operational support 24/7, clients can reach out anytime in the face of adversity. We’re well-versed in optimally training staff to use the comprehensive features available.
- Operational risk management
Compared to the old days, outsourcing Medilink-Global’s services can protect you from the risk of mistakes that the accounting and payroll department may conduct. By dealing with orders to be carried out and the financial consequences of any breaches, rest assured that we significantly reduce operational risk through specialised training and support.
Feel free to read more about Medilink-Global’s services or register as part of our panel network today.