Administrative Services Only - ASO

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DEFINITION of 'Administrative Services Only - ASO'

An arrangement in which an organization funds its own employee benefit plan such as a pension plan or health insurance program but hires an outside firm to perform specific administrative services. For example, an organization may hire an insurance company to evaluate and process claims under its employee health plan while maintaining the responsibility to pay the claims itself.

INVESTOPEDIA EXPLAINS 'Administrative Services Only - ASO'

ASO services are gaining popularity as many employers realize both the potential financial advantages and opportunity to balance control and protection to meet their organizations needs.

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