What does the acronym TPA stand for in workers' compensation administration?

• A. Third Party Administrator
• B. Temporary Processing Authority
• C. Technical Payment Agency
• D. Team Performance Agency

Answer: (A)

In workers' compensation administration, a Third Party Administrator is the outside firm contracted to handle claims for a self-insured employer. The TPA takes on day-to-day claims tasks—opening claims, investigating, determining eligibility for benefits, paying medical and indemnity benefits, coordinating medical care, managing return-to-work efforts, handling medical bills and subrogation, and ensuring compliance with state requirements. This role lets the employer focus on funding and oversight while the TPA brings specialized claims management expertise. The other terms aren’t standard roles in this field, so they don’t describe the typical entity responsible for claims administration.