Identify and describe the responsibilities of a Third-Party Administrator (TPA)

What will be an ideal response?

Answer:
A third-party administrator (TPA) is a professional firm that is under contract by the insurance company to deal solely with administering the eligibility and claim payment services including all of the paperwork (and various other administrative services) for self-funded benefit plans. The administrator provides all of the equipment and personnel required to meet the plan's needs. In turn, the plan supplies the funds or monies needed for payment of the administrator's services and for amounts paid out for claims. In contrast, the insurance company handles all plan administration, provides all of the equipment and personnel required, and supplies the funds for claim payments.