Administrative Services Only (ASO)

What is Administrative Services Only (ASO)?

Employers who contract with a third party to manage specific employee health benefits sometimes use a business structure called Administrative Services Only (ASO). This is because the provider does not provide the benefit itself; only administrative services.

Why Administrative Services Only (ASO) Matters

Employers who self-fund employee health benefits rather than providing workers with health insurance do so by using administrative services exclusively. These employers operate the program and handle claim processing by hiring a third-party administrator, frequently an insurance provider, at their own expense.