Health Care Reform Side Effects: What are Implications for Third Party Administrators?

Third party administrators (TPA's), among others, are anxious about the long-term implications of changes to the American health care system due to the implementation of the Affordable Care Act. They see changes restricting reimbursement of over-the-counter drugs and predict hard times for TPA's. But some TPA's seem to be ahead of the curve in trying to carve their niche in the market as innovators of health care cost administration.

This article, for instance speculates that TPA's futures are cloudy, but that there are nuances of health care reform that can be exploited by forward thinking companies. Specifically in the article, Scott Mardis, senior vice president of sales for AmeriFlex suggests, "The key for TPAs moving forward will be to communicate that whether an employee has an FSA, HRA or HSA, most of the expenses for which participants currently use their accounts will not be impacted by this law.

So innovation and quality customer service are essential in the face of major new regulations. The following provides example of two companies and how they have responded.

Examples of TPA Forward Thinking

eflexgroup.com

The following are three innovations that Eflex was at the forefront of TPA's:

• Web Self-Service The service is for Employers, Employees and Marketing Channel Partners. Eflex's website receives 1.5 million hits per month during its peak season, the equivalent CEO Ric Joyner says of taking 15,000 to 20,000 calls per week. This web activity includes participants who are accessing their accounts and employers administering their benefits.
• Debit Cards Eflex has offered and administered debit card technology for more than six years and was one of the first TPAs to do so.
• Co-Branded and Partner Web Sites Eflex was one of the first TPAs to offer our partners direct benefits access from their company homepage framed within the www.eflexgroup.com website.

Fringe Benefits Management Corporation

Besides being a top-notch TPA, FBMC has launched an innovative benefit-oriented education program called FBMC.TV. According to FBMC's website, "recent shows have covered health care reform, benefits enrollment options, COBRA, and tax-favored benefits. FBMC.TV's new episodes air each week on Tuesdays at 11:00 a.m. EST and on-demand.

Innovation Cannot Rest

It is obvious that the leadership at both eflexgroup.com and FBMC do not rest on their laurels. Rather, they constantly innovate and assure their markets expand. Leaders here see new regulations as opportunities and open doors, while others see only negatives.

Innovations at both these companies cast them as the experts with resources to navigate health care reform with valuable and timely information and forward-thinking products.

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