Under the Health Insurance Portability and Accountability Act (HIPAA), a third-party administrator (TPA) who receives insurance claims from the physician’s office in a nonstandard format or with nonstandard data and puts it into standard data elements or a standard transaction, or that receives a standard transaction and processes or assists processing the data into nonstandard format for a receiving entity. The TPA performs software edits and redistributes the claims electronically to various insurance carriers.