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Many self-insured employers choose to outsource their workers’ compensation claims handling to a Third-Party Administrator (TPA) instead of creating their own internal operation. Selecting the right TPA to meet the organization’s needs is critical to their risk management success since TPAs will be coordinating essential functions like managing loss reserves, facilitating claims investigations, issuing claims payments and settlements, coordinating medical management and organizing transitional work.

When making this decision, self-insured employers must consider certain criteria to best evaluate and select a TPA that will partner with them to provide the best claims outcomes. There are several effective fact-finding questions to ask the TPA during the evaluation process that can help determine which company is the best fit for their organization.

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