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Employers Found Ignorant On TPA, Care Group Pay

Many employers could be paying inflated costs because a majority are not fully aware of how their workers' compensation arrangements work with third party administrators or managed care organizations,

By Staff Writer | Updated on December 11, 2008

Many employers could be paying inflated costs because a majority are not fully aware of how their workers’ compensation arrangements work with third party administrators or managed care organizations, according to a consulting firm.

“The fact that employers do not know if their TPAs or MCOs are paid on a percentage-of-savings basis or fee-for-network access is disturbing,” said Susan S. Toussaint, president of Injury Management Partners. “This is a huge concern because some payment methodologies create misaligned incentives and actually drive up claim costs.”

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