Predictability and Transparency

An Administrative Services Only, or ASO, plan provide employers with an alternative way to fund their employee group benefits. They are becoming popular with companies looking for predictability and transparency.

Historically, ASO plans have been used by large corporations but, in recent years, they have become more accessible to small businesses.

So how do ASO plans work?

Each month, a company will pay a fixed amount based on previous claims history. If claims are less than expected, credits can be carried forward to the next month. If claims are higher than expected, the company is responsible for the deficit.

This model makes ASO plans attractive to companies that have steady claims experience and employees who may not make a lot of claims due to their demographic makeup. For startups with young and healthy employees, an ASO could be an attractive way to deliver benefits coverage.

It is important to know that not all ASO providers are created equal. That’s where we can help. We can help you find the most reputable ASO provider, with the best administration fees, service and customer service, and design the best plan for your needs.

If you would like more information about ASO plans, send us an email or call us at 1-800-773-8638.