ASO (Administrative Services Only)
You fund claims; the carrier only administers the plan.
Under an ASO arrangement the employer pays actual claims as incurred plus an administration fee. The insurer adjudicates claims and provides reporting and networks, but does not carry the risk.
A favourable claims year stays with the employer. An unfavourable one is the employer's to fund, which is why stop-loss cover is normally purchased alongside.
What this means for a BC plan
ASO suits larger BC employers with stable claims and the cash flow to absorb a bad year. Health and dental are the usual candidates; long term disability should stay insured.
Related terms
Where this comes up
Fully insured vs ASO · All glossary terms · Ask an advisor directly
General information only, not advice for your specific plan. See our legal and licensing disclosures.