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What is a Third Party Administrator (TPA)?

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Third-party administrators (TPA) are organisations that run duties like claim processing, managing employee benefits as per contracts, etc., generally for employee benefits and insurance. Health insurance companies outsource to TPAs for enrolment and claim processing. TPAs serve an entirely administrative function and have no legal or financial obligation. They are not authorised to accept or reject a claim without the insurance company’s approval. And, the risk of loss, however, remains with the employer.

What is a TPA in Health Insurance?

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A third-party administrator is a licensed outsourcing entity selected by a medical insurance company and regulated by the Insurance Regulatory and Development Authority of India (IRDAI). TPA works with the employer and the insurer to establish clear communication between the two, process claims, enrolment and many other two-days activities.

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Role of TPA in Health Insurance

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TPA plays a crucial role in the total processing of medical insurance claims. The role of TPA begins immediately after the insurer issues the best health insurance policy. Some of the essential functions that TPA in insurance include:

 

The role of TPA in health plan can be understood with the points below:

 

  • Connecting Link: In most hospitalisation claims, the policyholder directly or indirectly meets the TPA. The TPA provides the policyholder with a Unique Identification Number and ID card, which aids in claim settlement.
  • Record Maintenance: TPA helps maintain vital records related to policyholders when admitted as patients.
  • Claim Settlement: TPA ensures smooth coordination between the hospital and insurance company during cashless claim settlement. TPA offers back-end support in such cases.
  • Full-time Support: Most TPAs have a 24/7 customer support system where the policyholders can raise their queries and get feedback.
  • Additional Services: Most TPAs  can also provide other services like extra beds, ambulances, medical supplies, etc., to policyholders.

Benefits of Third Party Administrator in Health Insurance for Policyholders

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While the more prominent insurance companies have their in-house claims department, they also engage with TPAs to share the workload. Therefore, when choosing a medical insurance plans, you may also have to look at the TPA facility to understand the process better. The parameters below can help you choose a TPA for processing claims:

 

  • Hand-holding during hospitalisation.
  • Providing ID cards to policyholders/patients.
  • Assistance regarding the right kind of documentation.
  • Efficient Cashless Claims settlement process.
  • 24×7 customer support.
  • Simplification of the entire claim settlement process.

List of TPAs in India for Medical Insurance

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Here's a thorough list of TPAs for health plan that has been sourced from the Insurance Regulatory and Development Authority of India's (IRDAI) official website:

 

S. No.  TPA Registration No.  Validity Upto

1

Medvantage Insurance TPA Private Limited (formerly known as United Health Care Parekh Insurance TPA Private Limited)

No. 002

20.03.2023

2

Medi Assist Insurance TPA Private Limited

No. 003

20.03.2023

3

MDIndia Health Insurance TPA Private Limited

No. 005

20.03.2023

4

Paramount Health Services & Insurance TPA Private Limited

No. 006

20.03.2023

5

Heritage Health Insurance TPA Private Limited

No. 008

20.03.2023

6

Family Health Plan Insurance TPA Limited

No. 013

20.03.2023

7

Raksha Health Insurance TPA Private Limited

No. 015

31.03.2023

8

Vidal Health Insurance TPA Private Limited

No. 016

15.05.2023

9

East West Assist Insurance TPA Private Limited

No. 018

15.05.2023

10

Medsave Health Insurance TPA Limited

No. 019

14.05.2023

11

Genins India Insurance TPA Limited

No. 020

10.06.2023

12

Health India Insurance TPA Services Private Limited

No. 022

17.11.2023

13

Good Health Insurance TPA Limited

No. 023

26.01.2024

14

Park Mediclaim Insurance TPA Private Limited

No. 025

27.09.2025

15

Safeway Insurance TPA Private Limited

No. 026

19.07.2023

16

Anmol Medicare Insurance TPA Limited

No. 027

26.10.2023

17

Ericson Insurance TPA Private Limited

No. 035

18.12.2024

18

Health Insurance TPA of India Limited

No. 036

05.06.2023

19

Vision Digital Insurance TPA Private Limited

No. 037

24.06.2021

How TPA Works in India?

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A TPA acts as an intermediary between the policyholder and the insurance company. Their work is to simplify the claim settlement procedure under health insurance policies. As we know, there can be two processes of claim settlement:

 

  • Cashless Settlement
  • Reimbursement Settlement

How to Cancel TPAs in Medical Insurance?

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TPAs act as facilitators. And if there is any delay between the services being provided, you can contact the insurer, and they shall coordinate with the TPA and let you know about the progress. In addition, if you feel you want to cancel a TPA or switch to another TPA, you can discuss a change in service with the insurance company. Here are the steps to cancel a TPA in health plan:

 

  • Step 1: Reach out to your insurer via email or call.
  • Step 2: Communicate policy details and unique ID (UID), if any.
  • Step 3: Explain your reason for TPA cancellation.
  • Step 4: Select another TPA from the list if the insurer approves the change.

Frequently Asked Questions

Does the policyholder need to pay TPA for their services?

TPA's team consists of which members?

Do all medical insurance companies have TPA?

Does the policyholder need to pay TPA for their services? - +

Policyholders do not have to pay money to the TPA as their fees is a part of the insurance premium. Nothing extra is to be paid by the policyholder.

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