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What is an Administrative Services Only Program?Administrative Services Only (ASO) is an arrangement where an organization or employer hires an outside firm to perform specific administrative services, including claim administration, for a group health insurance program. The organization or employer retains financial responsibility for paying claims, and the health insurer does not assume any insurance risk under an ASO arrangement. Rather than buying a traditional insurance plan, employers may prefer to finance employee benefits for short-term disabilities as they occur. With an ASO plan, the employer covers the insurance claim payments and only pays the insurer to process those claims. This way the employer is freed from the responsibility of deciding which claims qualify for payment under the benefit plans and which ones do not. The insurer provides professional claim evaluation and does as much or as little of the administration work as the employer chooses. Under a standard ASO plan, the health insurer investigates and evaluates claims, prepares benefit payments, and sends the payments to the employer for distribution. The employer is always kept informed with detailed paid claim reports. The insurer also coordinates claim activity and reports for multiple employer locations. ASO services let each employer define the ideal balance of control and protection, and also enjoy a financial advantage. Emplicity provides customized ASO services to businesses wishing to manage human resource needs without the red tape and paperwork of personnel administration, but with your staff remaining employed solely by your company. We act as your one-stop HR shop, assuming responsibility for virtually all your HR administrative needs, such as payroll administration and payroll taxes, employee benefits and workers compensation. |
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