Hi all. I have a client who will be a takeover plan... their current TPA is charging them $1000 Deconversion Fee!! I think I vaguely remember hearing about this sort of thing, but never paid much attention to it because we would not charge such a fee.

Is this typical? Unfortunately, this client wants ME to reduce my first year fee!! I am astounded this morning... please advise.

Thanks.

I have seen some providers charge $1,000 if you want their electronic package. Typically though I have not seen fees that high.

To the extent that the work for the deconversion is outside what is outlined in an ongoing service agreement, I would expect there to be additional fees. As to the amount noted, I can't say if it is typical.

Concur with comments already posted.
The highest de-conversion fee I've seen is $500. Two things.
1) The de-conversion fee might be included in the engagement letter.
2) If the losing tpa's electronic package saves you two or three hours of manual entry, it's well worth the cost.