Which service is typically provided by a well-managed third-party administrator (TPA)?

A well-managed third-party administrator (TPA) primarily focuses on providing administrative services related to health care plans and benefits. This includes managing claims processing, conducting utilization reviews, and ensuring that claims adhere to the plan's provisions. The role of a TPA is to act as an intermediary between health insurance carriers and the healthcare providers or the patients themselves, ensuring efficient management of the services provided under a health plan.

Utilization review services are part of this administrative function, where the TPA evaluates the necessity, appropriateness, and efficiency of the healthcare services provided to the insured individuals. By performing these reviews, the TPA can help control costs and improve service delivery, ensuring that patients receive the care they need without unnecessary expenditures.

In contrast, full healthcare coverage is typically provided by health insurance plans rather than a TPA, which does not underwrite risk or provide medical benefits directly. Direct cost-sharing with patients relates more to how insurance plans manage patient payments and does not fall under the administrative role of a TPA. Health insurance product sales also belong to the domain of insurance carriers and brokers, rather than the functions typically associated with a TPA, which rather focuses on managing and administering the plan. Thus, option B correctly identifies the primary services offered by