Each private group self-insurer shall contract with a TPA for the first ______ full calendar years.

• A. Five full calendar years
• B. Three full calendar years
• C. Two full calendar years
• D. One full calendar year

Answer: (A)

A private group self-insurer must rely on a Third-Party Administrator for a defined initial period to ensure professional, compliant claims handling while the group builds internal capability. The requirement specifies contracting with a TPA for the first five full calendar years of self-insurance. That five-year window provides structured, external management of claims, reporting, and cost controls during the start-up phase, helping ensure proper administration and regulatory compliance as experience is developed. Shorter durations—two, three, or one year—do not meet this stated rule, which is why those options aren’t correct.