Third-party administrators are people or businesses that assist the pension plan’s holder with compliance and administrative tasks. The third-party administrator’s health solutions deal with the claims, processing, and reporting for self-funded health plans. These companies function as intermediaries between insurance policyholders and the administration company.
A third-party administrator health service provider will provide solutions like compliance testing, report-writing, allocations and the process of vesting, keeping, and amending the health benefits plan documents. Compliance testing is used to verify that the health plan is in compliance with IRS strict regulations. It also helps in making sure that those with lower incomes aren’t discriminated against. It is a requirement that the third-party administrator will issue the Form 5500 that is required by the IRS. Other duties assist the managers of health insurance plans to manage and handle claims efficiently. wbwdcbfdwh.