ADMINISTRATIVE SERVICES ONLY

Under an ASO contract, an insurance company will offer all of the same administrative and claims services that would be provided under an insured arrangement, but the insurance company does not assume any financial risk or liability. The Client is fully responsible for payment of all benefits, claims and demands brought under the benefit plan or ASO contract. Plan administrators provide the following services:

• Setup and maintain plan and financial records on administration systems.
• Issue and maintain the ASO contract, plan document and necessary financial documents to support the plan’s funding arrangements.
• Establish an operating account for the plan, which is credited with deposits and debited with paid claims, expense charges, pool charges, third party commissions (if any) and applicable taxes, and to which applicable interest is charged or credited.
• Provide preliminary training of plan administrators including an easy-to-follow administration kit.
• Regular bulletins and communications keep customers informed of issues that may affect their plan.
• Issue detailed monthly financial statements of all transactions in the operating account. These statements are issued about one week following the month-end.
• Provide medical underwriting services where applicable
• Offer benefit cost estimates and other similar actuarial services as needed to help customers understand the impact of plan design changes
• Our Web-based Group Benefits Reporting services offer a wide range of comprehensive claims and financial reports.
• Provide a comprehensive annual financial report within three months following the contract anniversary, showing claims and expenses incurred, deposits and interested credited for the year for each operating account, as well as combined results under the contract.
• Any surplus at year-end is discharged as directed by The Client. Any deficits are payable by The Client to the ASO provider within 30 days following our delivery of the annual financial report for the year.

The above is meant to give a brief overview of Administrative Services Only plans.  For more information please call us at 604.687.7773 or email solutions@customplanfinancial.com