A firm that handles various types of administrative responsibilities, on a fee-for-services basis, for organizations involved in cash flow programs. These responsibilities typically include claims administration, loss control, risk management information systems, and risk management consulting.
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MEDICAL: US: Independent organization or individual, other than the insurance company or health care provider, that processes and pays insurance claims to providers, provides administrative services for self-insured employer groups or managed care plans (e.g., collects insurance premiums, maintains records, handles routine underwriting but does not assume the risk). A TPA is recognized as a third party because it is separate from the employee participants and employer sponsoring the insurance plan. Also known as a clearinghouse .