Self Insurance And Medical Networks
Last week, I covered the advantages of Workers Comp self insurance over regular insurance. Today, I wanted to cover an area that is often ignored when setting up a self insurance program. That is the area of medical networks.
Are you going to turn over your medical networks to the Third Party Administrator (TPA)? Are you allowed to choose your own physicians or will the TPA require you to use theirs? Will switching your TPA cause you to lose your physicians in place? If you are just beginning your self insurance program, how will your company build its medical network? These are but a few of the questions you must cover when choosing a TPA.
Most of the time, the TPA’s medical network will cover most of the physicians your company has dealt with in the past. TPA’s usually do not require that an employers injured workers treat with a certain physician. The big savings here is the usual 15% discount not counting the fee schedule.
It may be prudent to ask for a copy of the medical network in place in your area before signing on with a TPA. Most employers do not ask for the medical network information. It is a very important part of which TPA to use for your Workers Comp claims.
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