Why Should Third Party Administrators Invest in a SOC Audit?
Third Party Administrators (TPAs) manage a lot of important and sensitive information for their clients. This industry relies on proper controls and processes in place in order to get the job done. Companies who partner with a TPA rely on trust and the assurance of these controls. More and more companies are pushing for third party administrators to become SOC compliant as an assurance that their data management systems and processes are secure.
What is the best SOC audit for TPAs?
The SOC 1 Report is linked to the outside user’s controls as they relate to finances and financial reporting, and due to the services the TPAs provide (Insurance information and claims, financial information, payment information, social security numbers), a SOC 1 audit would be most effective and relevant.
The companies intending to use the report are looking to see specific details about processes and procedures TPAs have in place, such as the following:
- All new plans are setup and established in a timely, accurate, and complete manner.
- The billing & eligibility department (B&E) facilitates, processes and maintains all necessary and vital information relating to member eligibility for clients.
- All incoming claims are received, handled and processed in a timely, accurate, and complete manner.
- All new claims are established and priced in a timely, accurate, and complete manner.
- The claims process is conducted and administered in a timely, accurate, and complete manner.
Being SOC certified helps TPAs assure clients that they have the necessary controls in place to properly handle and manage their information. It also helps speed up the sales process and reduce the costs of having to get multiple audits for new clients.
If you have any questions or are ready to get the SOC 1 Audit process started for your Third Party Administration, please contact us.