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What is an “Administrative Services Only” (ASO) Benefit Plan?

ASO benefit only" Plan Services
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What is an “Administrative Services Only” (ASO) Benefit Plan?

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Answer…Under an ASO arrangement , the group pays only for its actual claims experience plus an administrative charge for services provided by the carrier. The group needs to be coordinated and of sufficient size to obtain an ASO arrangement with an insurance provider and it also must provide a claims fluctuation reserve to support the ASO arrangement.

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