What are the salary ranges & operating ratios within TPA firms?
This makes pricing a TPA look simple, by comparison. SPBA has tried both formally and informally to collect such data, and it is always gobbledygook. Why? TPA job titles, duties, and sources of payment are myriad. Some get salary. Some get small salary and mostly commission & bonus. Some get parts of their compensation from several different parts of related businesses. Even the total amounts vary by thousands of percent. For example, Fred Hunt’s small referral service for members has “marketing” jobs ranging from $20,000 to $250,000. Similarly, the structure of the finances of SPBA firms is all across the range. The last time SPBA had a formal operating ratio survey, the compiler reported: 30% of you have no phones. 20% of you have no office rent/purchase/overhead costs. 10% of you have no personnel costs. etc. etc. The TPAs, of course, had these expenses, but they were allocated differently.
