ASO (Administrative Services Only)
Another plan option available is to utilize an Administrative Services Only, or ASO, plan for Health and Dental benefits.
Under this type of plan, employers are responsible for paying claims with lower administrative charges from the insurance companies to adjudicate these claims. The employer takes on all the risk however, rather than the insurance company. If claims are excpetionally high one year, the employer will have to cover these expenses fully.
ASO plans are better utlilized for larger-sized groups that are well established and have a stable history with regards to claims and rates.