Health Care Glossary
Third-Party Administrator (TPA)
A company that provides administrative services to health plans or self-funded health plans but that does not have the financial responsibility for paying benefits.
Third-Party Payment
The practice of an insurer paying providers directly for services rendered to an insured, as opposed to an indemnity contract which pays the insured person for the losses incurred.
Trustee
The differences between a "custodian" and a "trustee" are minor. A trustee represents a legal entity under which assets are actually owned and held on behalf of a beneficiary. The trustee has some level of discretionary fiduciary authority over the assets of the fund. The trustee must exercise that authority in the best interests of the beneficiary.
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