With an increased popularity of self-insurance, companies that offer Administrative Services Only are becoming more vital. This company, commonly called the ASO, provides the administrative services required for insurance for a group of people or an individual, but does not actually provide the insurance. The ASO may also be called the TPA - third party administrator.

For example, if “ABC” - a large company - decides to become self-insured in order to offer insurance to its employees, that company will hire and ASO to handle all the administrative details of providing insurance - the paperwork. That ASO doesn’t actually provide the insurance coverage but will do everything the officer personnel of a traditional insurance company would do - file claims, track deductibles, and handle enrollment.

An ASO can also help locate the right group for various forms of insurance for families and individuals who aren’t employed by any particular company. The cost of participation varies greatly as do the benefits and you should only work with an ASO you trust. Remember your grandmother’s advice on this one - “If it sounds too good to be true, it probably is.”