A TPA is an independent company that manages administrative tasks for an organization related to employee benefits like health, dental, and vision insurance claims processing, billing, enrollment, compliance, compliance, and record keeping.)
A TPA differs from an Administrative Services Only (ASO) entity, which can be owned by an insurance company (rather than being a separate, independent organization).
Often a TPA will also administer an employer’s COBRA benefits when a (former) employee elects to maintain benefits after leaving an organization’s employment.
In most states, TPAs must be licensed with the state where they operate.