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Budgeted Administrative Services Only (ASO) Plan Through ASOnly

By: Benefits by Design | Tuesday June 18, 2019

Updated : Wednesday January 13, 2021

Over the past several years, we’ve noticed a growing trend in the insurance industry: the need for cost-containment and stability. 

In response to this trend, Benefits by Design (BBD) Inc., in partnership with ClaimSecure, is proud to launch our first budgeted Administrative Services Only (ASO) product, ASOnly.

What is an Administrative Services Only (ASO) plan?

Administrative Services Only (ASO) plans are a self-insured solution and one of several benefits funding options. This means employers pay for their employees’ eligible health and dental claims*, up to a stop-loss threshold.

With the right fit, this arrangement provides a measure of cost-savings to employers. As a result, employers only pay for what is used, rather than set premiums, without sacrificing coverage employees want.

*Plus any applicable administrative fees, commissions, and taxes.

What is a Budgeted Administrative Services Only (ASO) plan?

A budgeted ASO plan works similarly to a traditional benefits plan in the way of monthly premiums.

The difference comes at year-end when the provider reviews the claims throughout the year, totals them up, and compares them to the total of annual premiums. This creates three outcomes.

For example:

Premiums equal claims - no additional action will be required at the time of reconciliation. 
Premiums are greater than claims - employers will receive reimbursement either in a lump sum or as a credit against future billed premiums. 
Premiums are less than claims - employers will need to provide additional funds to cover claims.

The Ideal Client for ASOnly

A budgeted ASO plan is the right fit for your client, if:

*Some exceptions may apply. Please speak with your Regional Director or BBD Quoting team for more information.

In conclusion, ASOnly provides small- to medium-sized Canadian employers with a state-of-the-art Budgeted ASO plan with the feel of a traditional insured plan. 

To help you sell this product to your clients, we’ve created the ASOnly Advisor Guide, which summarizes everything you need to know about the product and the process, from quoting, sale and implementation, through to reconciliation and renewal.

Click the button below to download the ASOnly Advisor Guide

Download the ASOnly Advisor Guide (PDF: 843 KB)