In the complex, often opaque world of health benefits, there is a powerful, yet frequently misunderstood entity keeping the system running smoothly: the Third-Party Administrator, or TPA. Far from being just another insurance middleman, the TPA is the essential operational backbone, particularly for the surging number of businesses that choose to self-fund their employee health plans.

TPAs are the quarterbacks of benefits administration. They don't take on the financial risk of claims (that responsibility remains with the employer), but they handle the enormous administrative lift required to make a health plan function seamlessly.