There appears to be a trend among many work comp insurers to shift more and more claims-handling responsibilities to third party administrators (TPAs).
I (and I’m sure many others) have been somewhat aware of this for a few years, but like the proverbial frog in the pot, the temperature has been increasing rather slowly, and the consequences have been barely visible.
Currently, the big TPAs — Sedgwick, GB, York and Broadspire — are all doing a lot of claims handling for big work comp insurers. AIG has outsourced a big chunk of its claims for decades, but other insurers are slowly following suit.
The drivers are many:
There are implications aplenty for all parties involved. They have different revenue models, different service expectations and definitions, and different priorities.
What does this mean for you?
Good stuff if you’re a TPA. And perhaps fewer headaches if you’re a carrier — unless you pick the wrong TPA.
Joe Paduda is co-owner of CompPharma, a consortium of pharmacy benefit managers. This column is republished with his permission from his Managed Care Matters blog.
May 5-8, 2024
Amplify Your Impact There’s no limit to what you can achieve when you join the global risk managem …
May 13-15, 2024
Join us May 13–15, 2024, for NCCI's Annual Insights Symposium (AIS) 2024, the industry’s premier e …
May 13-14, 2024
The Board of Managers is excited to announce that the CSIA 2024 Annual Meeting and Educational Con …
No Comments
Log in to post a comment