Run out claims administration fees

[alexa]

We are switching medical vendors for a company we purchased as part of a stock deal today.

Prior medical vendor wants to charge us the regular ASO fee ($38/month/ee) for 3 months totalling around $45K

I think this is high. All they will provide is run-out claims adminstration. We are self-insured.

Has anyone else experienced this? What is a reasonable fee arrangement for this sort of service?

Thanks

[papogi]

In my experience, that's not uncommon. Based on lag reports, at least 3 months of full admin fees is common, with any additional services (if agreed to) paid on a per-EOB basis. Other arrangements are certainly possible.

[GBurns]

Why do you have a problem paying the usual ASO fees for the usual ASO services ?

[Guest Nate Ogden - OBA]

We charge 3 times as well and find that to be very common but our admin fees are substanially less then that. If it is spelled out in the service agreement they have you over a barrel. Lost PPO discounts and trying to get the new TPA to process run in could cost you considerably more.

Did you keep the same PPO? If so the new TPA could possibly do it for less.

[alexa]

We charge 3 times as well and find that to be very common but our admin fees are substanially less then that. If it is spelled out in the service agreement they have you over a barrel. Lost PPO discounts and trying to get the new TPA to process run in could cost you considerably more.

Did you keep the same PPO? If so the new TPA could possibly do it for less.

No we do not have the same PPO. I am getting a copy of contract and taking a look at termination clause. Since we took over as a stock deal , I believe this should be honored since we take the prior contract albeit have terminated effective 9/30.