Administrative Services Only (ASO) definition

A firm employed by another business to carry out administrative tasks without assuming any element of risk. Often used in regard to health care vendors – for example, a business may buy a private medical insurance policy for their employees and then pay another firm to process claims. All liability for paying premiums, assuming risk and remaining compliant with the policy remains with the original company. Obviously, administrative services only (ASO) cost less than employing a firm to also assume liability.


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