Which statement best describes the role of a Third Party Administrator in self-insurance programs?

• A. The TPA oversees claim administration and processing
• B. The TPA handles payroll processing
• C. The TPA provides medical treatment
• D. The TPA approves policy renewals

Answer: (C)

In a self‑insurance program, the Third Party Administrator's primary function is to handle all aspects of claims administration. This includes receiving injury reports, opening and supervising claims, assigning adjusters, evaluating coverage, reserving liability, processing and paying approved benefits, and coordinating care with medical providers and networks. They also may conduct utilization review, manage subrogation, and assist with return‑to‑work programs. They do not actually provide medical treatment—that role belongs to licensed medical professionals—and payroll processing or policy renewals are not duties of the TPA in a self‑insured plan.