From Bob McKendry's blog post titled, "Should Cost be the Primary Factor in Selecting a Third Party Administrator?":

"The bottom-line for selecting a TPA is not always cost. Many factors, including the complexity of your business environment, the changing nature of your workforce and plan history may dictate a higher degree of expertise and skill for your TPA."

McKendry goes on to write:

"A typical misconception is all TPAs offer the same services and expertise, so cost should be the main actor in selecting a TPA. But, just like doctors or lawyers, not all TPAs have the same skill set and expertise. Nor do all TPAs offer the same services. The services offered by TPAs are often limited by the fees charged by the TPA and the skill set and expertise of the firm."