TPA Service Pricing and Incentive Contracts

Abstract
This paper addresses a variety of pricing issues faced by a Third Party Administrator (TPA) whose main responsibility is claims handling for self-insured employers and self-insured groups. These issues include the development of service fees using claim closure information, the selection of service durations, and the design of incentive (either activity-based or financially-based) service contracts.
Volume
May
Page
137-162
Year
1996
Categories
Actuarial Applications and Methodologies
Ratemaking
Expense Loads
Loss Adjustment Expense Loading
Actuarial Applications and Methodologies
Reserving
Claims Handling
Actuarial Applications and Methodologies
Reserving
Reserving Methods
Business Areas
Workers Compensation
Publications
Casualty Actuarial Society Discussion Paper Program
Authors
Hou-Wen Jeng