Who handles the administration of a self-funded health care plan?
An employer with a self-funded plan normally hires a third-party administrator (TPA. to collect premiums, pay claims and handle other paperwork. Many insurance companies contract as TPAs for self-funded health care plans. This can disguise the fact that your plan is self-funded. The administrator’s name appears along with the employer’s on your benefits booklet and claim forms, just as if it were your insurance company. Your employer provides the money, decides what benefits to offer and what claims to pay. The TPA follows your employer’s instructions.
