Why Size Doesn't Matter When Choosing the right Third-Party Administrator
Updated: Apr 9
There are lessons to be learned in business that can often be overlooked, and one of the greatest is that of size - why bigger isn’t always better. Often, when companies look for a third party administrator (TPA), one of the first questions they ask is “How big of a player are you?” – as if the size of the organization will have a direct and positive impact on the outcomes of their claims. Unfortunately, the reality is that many employers are still choosing their TPA solely based on name and size. The result? They are likely getting a one-size-fits-all service model with poor communication, high adjuster turnover, and ultimately poor claims outcomes.
Does this sound too familiar? The good news is that every day, employers are discovering that bigger isn’t always better and are making the switch to a boutique TPA that provides better expertise and client service, yet still has national claims capabilities.
The benefit of a specialty TPA is not just in claims pricing but in the quality of their team and adjusters. When selecting a TPA, an employer should keep in mind that while they are hiring a whole firm, the personal relationship you have with your dedicated adjuster is the most critical factor in driving claims success. In today’s world, adjusters need to be masters of critical thinking and negotiating, skilled at avoiding litigation, and experts at employing alternate claim strategies to achieve resolutions for their clients. Just as in selecting an accountant, attorney, or other professional advisor, the employer and TPA should have shared goals that match the employer’s overall business philosophy. Many factors should be taken into account when choosing a TPA. Following are a few indications of a great, client-service oriented TPA, and key performance metrics you should evaluate to determine if they are the right fit for your organization:
Simply selecting the largest TPA won't guarantee a quality product. Boutique shops provide the opportunity to match operational cultures and improve the overall partnership by having direct relationships with the TPA’s senior management team.
“Your third party administrator should be an extension of your team, which comes with the same expectations for performance, quality, service and results that exists within your own organization,” says Chris Weckherlin, representative at CBCS. “Employers should be diligent when choosing their TPA partner, comparing not only size, but their reputation in providing quality client service and delivering results.”
CBCS has been providing a better claims experience for hundreds of employers for over 30 years. Our approach and record of accomplishment is self-evident, and we’d love to talk to you about your current operations and experience. To learn more visit www.CBCSClaims.com.