ADMINISTRATIVE SERVICES ONLY (ASO)
By using the Administrative Services Only contract, the employer hires an external firm to administer the health insurance program and the employer fully retains the risk to finance said benefits. Commercial insurance companies such as Blue Cross organizations and other Administrators (Third-Party Administrators) offer Administrative Service Only contracts to employers.
By purchasing ASO contracts, the employer is released from the responsibility of processing claims, but not from having to disburse the benefits. To disburse the benefits, the employer deposits the amount needed to pay the claims in a bank account, and the plan administrator uses the funds from that account.
It is an arrangement in which the insurance company agrees to provide services to a self-insured entity, such as providing printed claim forms, as well as processing and auditing claims. The insurance company does not assume any insurance risk under the ASO agreement. The purpose of ASO is to provide our customers the services they want and need. Our ASO services allow you to choose the options that best fit your company.
Some of the services for ASO customers:
- Claim Analysis Process
- Customer Service
- Claims Material
- Claims Payment
- Periodic Reports
- Utilization Review
- Actuarial Services
