Many employers could be paying inflated costs because a majority are not fully aware of how their workers' compensation arrangements work with third party administrators or managed care organizations, according to a consulting firm.
"The fact that employers do not know if their TPAs or MCOs are paid on a percentage-of-savings basis or fee-for-network access is disturbing," said Susan S. Toussaint, president of Injury Management Partners. "This is a huge concern because some payment methodologies create misaligned incentives and actually drive up claim costs."
Injury Management Partners consulting firm, Palm Harbor, Fla. and Occupational Health and Safety Group Magazine of Chatsworth, Calif. reported that an online survey of 91 employers found 60 percent of them are unsure how their third-party administrators or managed care organizations were compensated for medical provider network development.
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
