Medical Third-Party Administrator Evaluation, Selection and Contracting Best Practices.

BEST practices; EMPLOYEE benefits; LAWYERS; CONTRACTS; REASONABLE care (Law)

This article discusses best practices for evaluating, selecting, and contracting with third-party administrators (TPAs) for self-insured medical benefits. The article emphasizes the importance of plan fiduciaries following ERISA's duty of care when choosing a TPA and recommends involving legal counsel and brokers/consultants in the selection process. The article outlines the steps involved in evaluating and selecting TPAs, including retaining a broker/consultant, conducting a request for proposal (RFP), and finalizing the contract. It also highlights key contractual terms that plan fiduciaries should consider, such as fiduciary status, termination rights, indemnification, data security, and performance guarantees. The article concludes by emphasizing the need for ongoing monitoring and periodic RFP processes to ensure compliance with fiduciary duties. [Extracted from the article]

Copyright of Employee Benefit Plan Review is the property of Wolters Kluwer Legal & Regulatory and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)