Risk & Business Magazine Cooke Insurance Group Magazine Winter 2018 | Page 31

THIRD PARTY ADMINISTRATORS
Control Your Benefits Cost Without The Headache
I
f you think about the last time you
had to change insurance companies,
you might remember it as a major
headache: soliciting new enrollment
forms from staff, answering myriad
questions about benefit and cost changes,
and waiting for new packages and cards to
arrive for distribution (hopefully on time).
Needless to say, repeating this frustrating
process every time you decide to switch
insurance companies is nobody’s idea of a
good time. The insurance companies count
on this aversion to the changeover process,
in part, to keep companies from defecting to
other carriers.
As the cost of health care—and health
care benefits—continues to rise, many
companies have searched in vain for a
solution other than scrambling from carrier
to carrier. A great way to gain more freedom
and control costs has actually been around
for years: third party administrators (TPAs).
A TPA allows companies to outsource their
health care plan administration processes—
such as enrollment, claims processing, and
network management—entirely to a third
party.
The great thing about using a TPA is that
you can switch insurance companies
behind the scenes without involving
your front-end staff in any way. Since the
TPA already has all of your company and
employee information online, it does not
need to be resubmitted every time you
change carriers. This saves you and your
employees time. Without completing any
additional paperwork, your TPA can submit
your company information to one or more
insurance carriers with no effort on your
part other than a simple signature.
Have you ever chosen an insurance
company even though their quote on a
particular line item was not the best? When
using a TPA, you can get the most cost-
effective package available by dividing your
Danny Corriveau, President of Cooke Capital, has a
passion for consulting with businesses, large and small,
seeking customized Group Health Plan solutions.
His experience serving a broad client base enables
Danny to respond quickly to the unique needs of
both employers and employees enhancing long-term
prosperity for his clients. 
coverage between two or more different
carriers. For example, you can decide to go
with Company A for your life and long-term
disability coverage and Company B for
health and dental coverage. If renewal time
comes and Company’s A rates are no longer
reasonable, your TPA can switch you over to
Company C with just a signature.
This approach gives you more control and
leverage since you are no longer beholden
to arbitrary rate increases. If you don’t like
what is being offered, you can simply switch
companies at renewal time. That fact alone
makes insurance companies much more
willing to work with you and think twice
about raising your rates. In this situation,
it benefits them to try to gain retention
through service rather than through your
aversion to completing paperwork—a
solution that is clearly in the best interest of
both parties.
A TPA is worth exploring even if you are
currently happy with your benefit plan.
As every business owner knows, a lot
can change from one year to another—
especially with regard to insurance. For
more information or a consultation on the
benefits of a TPA for your business, contact
Cooke Insurance at 902-566-5666.
BY: DANNY CORRIVEAU,
COOKE CAPITAL
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