THE RISKS By Tyana Caplan A
dministrative services only, or ASO plans, are becoming increasingly popu- lar as an alternative way for employers to fund employee group benefi ts. With most ASO arrangements, the
goal is for the employer to self-insure the cost of providing benefi ts under a plan administered by an insurance company, which agrees to provide full administration and claim adjudication services but
4 WINTER 2012 DOING BUSINESS IN ATLANTIC CANADA
bears no liability arising from the claims against those services. In the past, only government and large business-
es had access to ASO plans, while smaller employ- ers had fewer options for group benefi ts plan de- sign. Advances in technology now allow for third party group insurance administrators to offer ASO plans to smaller employers. This has led to a grow- ing trend with employers of various sizes moving
FOR INSURERS IN ENTERING ADMINISTRATION SERVICES ONLY (ASO) CONTRACTS
