Gilsbar, Inc., a preeminent third party administrator in the southeast, recently began targeting insurance companies for outsourced claims payment, administration, customer service, billing, eligibility, COBRA and HIPAA compliance services. Gilsbar has been administering medical plans for insurance carriers since the 1960s. The company secured work for Hannover Life Re, of Orlando Florida on August 1, 2003. Recent trends show that administration of group major medical, individual major medical, Medicare supplement plans, dental, life and long term disability are often being outsourced to independent TPAs in this manner.
According to Hank Miltenberger, Gilsbar’s President, “HIPAA legislation and its associated compliance requirements have led many insurance company executives to determine that the time and financial investment required to maintain operations and become compliant with HIPAA is not cost effective for them. Instead of investing hundreds of thousands of dollars to ensure compliance, the logical alternative is to outsource, shifting the burden of compliance operations to the independent TPA. Some of the industry’s largest companies are considering outsourcing, as certain TPAs can offer a level of expertise and efficiency the insurance company simply can’t compete with in- house. Outsourcing allows the insurance company to focus on more productive strategies including sales and business development. It’s really a win-win for both parties.”
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