Insurance

Third-Party Administrator (TPA) Fee Expense

Paying a TPA for managing the medical network, pre-authorizations, and claims processing.

Account NameTypeDebit ($)Credit ($)
TPA Management Fee ExpenseExpense (+)15,000.00-
Accounts Payable (TPA)Liability (+)-15,000.00

💡 Accountant's Note

TPAs manage medical claims operationally for insurers who do not have their own networks. The fee is typically a percentage of premium or a per-member-per-month (PMPM) rate. It is a direct expense of the medical line.

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