Your fiduciary duty begins when you hire the TPA – best hiring practices include, but are not limited to, obtaining competitive bids and ensuring the TPA has all the proper credentials.
Make sure the TPA you hire charges reasonable fees and provides only the services necessary to operate the plan. Verify that there are no hidden fees in the contract.
Make sure any TPA hired for claims handling follows the ERISA claims regulations
Have you ever tried to audit your TPA to see how your Plan assets are being spent?
Make sure your contract with the TPA allows you access to your own plan data!
How can you show you care about complying with ERISA?
Check the actual fees your plan is being charged
Always follow up on all participant complaints,
Read any reports, letters, and other information from the TPA, and
Ensure you understand the claims handling procedures.
If you have any concerns about the TPA that administers your ERISA-covered health care plan, call or write to Karen Handorf or Julie Selesnick at Cohen Milstein, 1100 New York Avenue NW, 5th Floor Washington DC 20005; 202.408.4600.