Opposing the state-owned companies engaging third party administrators in the health insurance portfolio, association secretary general T S Par Oli told reporters in Coimbatore that it would only help private companies which were not willing to develop their own infrastructure for settlement of claims.
With the existing build-up of the vast resource base of manpower for settlement of claims for the last three decades, TPAs would involve unnecessary expenditure for the government companies.
Instead of allowing the new players to set up claim settling management, the existing state-owned companies must be allowed to open own claim settling administrators by utilising the present surplus and well trained work force, Oli suggested.
Stating that TPAs would create another layer of administration in the present claims settling process, Oli said that when the state-owned companies were fully capable of dealing with the heath insurance portfolio, hiring the services of TPAs was unjustifed and totally against the interests of government companies.
TPAs would also increase mediclaim premium rates, which was against the interests of general public, Oli said.