HMA at 40: Thriving by Taming Employer Healthcare Costs

BELLEVUE, Wash. – April 07, 2026 – As healthcare costs continue their relentless climb, Healthcare Management Administrators (HMA) last month marked a significant milestone: 40 years of operation. For four decades, the Bellevue-based firm has carved out a durable niche as a third-party administrator (TPA) for self-funded employers, a model that has become increasingly vital for companies seeking control over their health plan expenditures. The anniversary not only celebrates longevity but also highlights a strategic evolution that has allowed HMA to navigate a profoundly transformed industry.

The Evolution of Self-Funding and the Modern TPA

Founded in 1986, HMA entered a landscape where the concept of self-funding—where employers assume the financial risk for providing healthcare benefits to their employees—was gaining traction as an alternative to traditional, fully insured plans. Over the past 40 years, this model has grown substantially, particularly among larger employers looking for flexibility and potential cost savings. This shift has been a primary catalyst for the growth of the TPA market, which is projected to expand at a compound annual growth rate (CAGR) of over 9% globally in the coming years.

The role of the TPA itself has undergone a dramatic transformation. Initially functioning as administrative processors focused on handling claims, TPAs have evolved into indispensable strategic partners. The modern TPA is expected to do far more than just process paperwork. Employers now rely on them for sophisticated data analytics, regulatory guidance through complex legislation like the ACA, and the implementation of proactive cost-containment strategies. HMA’s four-decade journey mirrors this industry-wide shift, moving from a service provider to a strategic guide for employers navigating the complexities of healthcare.

"While our industry has continued to evolve, our purpose has not," said Kimberley Bryant, Chief Operating Officer at HMA, in a recent statement. "We remain deeply committed to supporting our partners with thoughtful solutions, proactive expertise, and a people-first approach that has shaped who we are and who we continue to become."

A Disciplined Approach to Cost Containment

At the core of HMA's value proposition is its ability to manage one of the biggest challenges for any self-funded employer: rising medical and pharmacy costs. The company reports that its clients consistently see average cost trends that are lower than national averages, a claim it attributes to a multi-pronged, disciplined strategy. This approach is critical in an environment where the U.S. TPA market alone is expected to more than double, from roughly $65 billion in 2024 to over $144 billion by 2031, driven largely by the demand for cost control.

HMA’s methodology integrates several key industry practices. Care management programs help guide employees toward efficient and appropriate medical care, preventing unnecessary procedures and hospital stays. Medication steerage programs work to manage soaring pharmacy expenses by promoting cost-effective prescription drug alternatives. Crucially, the company emphasizes payment integrity, using robust analytics to scrub claims for errors, waste, and potential fraud.

"We stay closely connected to our clients and broker partners, and we back that partnership with payment integrity programs and robust analytics that help surface trends earlier, reduce avoidable spend, and support better plan decisions," noted Carrie Wies, Senior Client Success Director at HMA. This data-driven approach allows for proactive adjustments rather than reactive responses to cost spikes, a key differentiator in the TPA space. The strategy is rounded out by collaborations with vetted stop-loss insurance partners, which protect employers from the financial shock of catastrophic claims that could otherwise derail a self-funded plan.

Balancing Technology with a 'People-First' Philosophy

While data and analytics are central to its strategy, HMA credits its longevity to a 'people-first' philosophy that prioritizes relationships and service. In an industry often criticized for being impersonal and difficult to navigate, this focus on human connection has fostered deep-seated loyalty. The company points to client relationships that have endured for over two decades as evidence of a shared commitment.

"This anniversary is really about the people behind the progress," Bryant stated, acknowledging the role of clients, broker partners, and the internal team. This internal culture is an often-overlooked component of success. For five consecutive years, HMA has been named one of Washington's Best Workplaces by the Puget Sound Business Journal, an honor based on employee feedback. A stable, engaged workforce is often a leading indicator of superior customer service and consistent client support.

This human-centric approach is supported, not supplanted, by technology. HMA utilizes a modern tech stack, including digital member portals that provide employees with easy access to their benefits information, provider networks, and claims status. By offering flexible, unbundled solutions, the company allows employers to customize their health plans, choosing the specific services they need rather than being locked into a one-size-fits-all package. This blend of responsive, personalized service and enabling technology appears to be a cornerstone of its enduring appeal.

Strategic Growth in a Competitive Landscape

The TPA market is both large and fragmented, featuring a wide array of competitors. These range from massive national players affiliated with major insurance carriers, such as UMR and Meritain Health, to a host of independent regional and specialized firms. In this crowded field, HMA has differentiated itself not through sheer scale—with an estimated annual revenue between $50 million and $100 million—but through its focused model of customized service and demonstrable cost control.

Rather than standing still, HMA continues to pursue strategic growth. A recent alliance with Priority Health, a major Michigan-based insurer, demonstrates this forward-looking approach. Beginning in 2025, the partnership will offer a new TPA solution for Michigan’s self-funded employers, combining HMA's administrative expertise and high-touch service model with Priority Health's extensive provider network. This move allows HMA to expand its geographic footprint while leveraging the strengths of a regional market leader.

Such partnerships underscore the company's adaptability and its recognition that in the evolving healthcare ecosystem, collaboration is key to delivering value. By focusing on its core strengths while forging strategic alliances, HMA is positioning itself to not only commemorate its past 40 years but also to compete effectively in the decades to come. This proactive strategy exemplifies a business that is actively building its future rather than simply celebrating its history.