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Why the Movement to ASO Benefit Plans

Administration Services Only Benefits ASO

Over the last few years you may have heard the term ASO and not been quite sure what it means.  Over the next two newsletters The Benefit Guys will explain in simple terms why there is a movement toward these types of plans.  Also referred to as Hybrid plans, The Benefit Guys expect within five years, the main benefit package offered by all employers, regardless of the number of employees, will be structured around ASO. Don't wait to find out how to use your money better.

We will lump the discussion into different categories;

This month 1: Technology, 2: Cost Control and Flexibility

Next month 3: Risk Sharing, 4: Education and Habits.

  • Technology: The smart phone put processing power into everyones hands.  Employees can take a photo of a medical receipt, submit it for payment and have that money in their bank account within 48 hours.  That's service.  The speed and processing power allows administrators to process everything thousands of times faster and more efficiently.  This service was only available to large employers until the last few years
  • Cost Control and Flexibility: Most of the money spent on an employee benefit plan is with the "low risk, high frequency" items, like prescriptions, dental etc. Employers want a highly efficient company handling these processing claims, not a dinasaur. The ASO account offers a fixed processing cost.  No renewal surprises for anyone.  Move the true insurance risk to a different program and create a hybrid plan.  Don't try to fit "their plan" when it's "your plan" you require.

If you want more info now, give The Benefit Guys a call at 519-622-3347.  We would be happy to meet with you and discuss in detail, your needs. Our experience will develop a plan which best fits for your needs and your budget.

          "No matter how many employees you have - it's perfect.  And it starts with one!"

Our Best Practices Annual Review is available for download.  You need to reduce your benefits liability exposure. The content in this document will help you.