What does the term ‘TPA’ means in health insurance
A common term found in all the health insurance policies in India is ‘TPA’. Adding to the confusion is the explanation found “TPA means any company who has obtained license from IRDA to Practice as Third party administrator and is appointed by the company.”
In lay man’s term TPA is like a BPO; a common link between Insurance Company and the Customer. Insurance companies find the processing of claims to be a repetitive and standardized activity and use TPAs to outsource some of their administrative burden for a cost.
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The term ‘TPA’ in health insurance
Tags: TPA
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