Administrative Services Only (ASO)

Administrative Services Only, or ASO, is an arrangement where a company keeps control over how its employee benefits plan, like health insurance, is designed and funded, but hands off the day-to-day administration to an outside provider.

The company sets the terms: what the plan covers, the budget, the structure. The provider does the legwork, processing claims, handling enrollments, answering employee questions, and keeping the plan compliant with regulations.