Administrative Services Only - ASO

AAA

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.

RELATED TERMS
  1. Insurance Underwriter

    A financial professional that evaluates the risks of insuring ...
  2. Health Insurance

    A type of insurance coverage that pays for medical and surgical ...
  3. Accident And Health Benefits

    Fringe benefits provided to employees for sickness, accidental ...
  4. Hazard Insurance

    Insurance that protects a property owner against damage caused ...
  5. Life Insurance

    A protection against the loss of income that would result if ...
  6. Pension Plan

    A type of retirement plan, usually tax exempt, wherein an employer ...
Related Articles
  1. Fighting The High Costs Of Healthcare
    Home & Auto

    Fighting The High Costs Of Healthcare

  2. 5 Insurance Policies Everyone Should ...
    Home & Auto

    5 Insurance Policies Everyone Should ...

  3. Business Owners: How To Set Up An SEP ...
    Entrepreneurship

    Business Owners: How To Set Up An SEP ...

  4. Tax Credit For Plan Expenses Incurred ...
    Entrepreneurship

    Tax Credit For Plan Expenses Incurred ...

comments powered by Disqus
Hot Definitions
  1. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  2. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  3. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  4. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  5. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  6. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
Trading Center