Stop overpaying for traditional benefits
ASO puts you back in control

Why more employers are switching to Administration Services Only plans

What happens on the call:

We review your claims and renewal history
We compare fully insured vs ASO for your situation
You get a straight answer on whether ASO is a fit

No sales pressure — if ASO doesn’t make sense, we’ll tell you.

ASO is ideal for organizations that:

Have 10–250 employees
Are frustrated with annual premium increases
Want cost control without reducing coverage
Want better visibility into benefits spending
Prefer predictable budgeting and proactive decisions

How an Administration Services Only (ASO) plan works

With an Administration Services Only (ASO) plan, the employer funds health and dental claims directly instead of paying inflated bundled premiums to an insurance company. Insurance still plays an important role, but only for catastrophic and high-cost claims—not for everyday, predictable expenses.

Under ASO, the process is simple:

Employees use their benefits the exact same way — same cards, same providers, same experience.
Claims are submitted and processed as usual.
The employer pays only for the actual approved claims, plus a fixed administration fee for handling claims, reporting, and plan support.
Stop-loss insurance protects the plan if a claim exceeds a pre-set threshold.

Instead of “paying premiums and hoping you get value,” an ASO plan lets businesses see where every benefit dollar goes and adjust benefits over time as needs change. For employers who want to control costs without reducing coverage, ASO provides transparency, flexibility, and a more predictable long-term approach to funding benefits.

Who offers ASO plans — insurers and TPAs working behind the scenes

An Administration Services Only (ASO) plan is a different way for employers to fund health and dental benefits. Instead of paying bundled premiums to an insurer, the employer pays only for actual approved claims plus a fixed administration fee. Stop-loss insurance is added to protect the plan from catastrophic claims, so there is no risk of a single large claim destabilizing the plan.

ASO can be supported directly by an insurance carrier, or through a Third-Party Administrator (TPA). Many insurers—including Canada Life, Manulife, Sun Life, GreenShield, and Empire Life—offer ASO programs with integrated claims services and reporting. TPAs such as People Corporation, Victor Canada, and The Benefits Trust also manage ASO plans, often with enhanced flexibility in plan design, reporting, and provider options.

Whether ASO is delivered by an insurer or a TPA, the employer gains greater transparency, improved cost control, and the ability to adjust benefits over time without disrupting employees.

Strong Service, Modern Tools, and Clear Reporting

One of the biggest advantages of an Administration Services Only (ASO) plan is the level of reporting available to the plan sponsor. Every month, employers receive a clear breakdown of how the plan is performing: total claims paid, claims by category (drug, dental, paramedical, etc.), administration fees, stop-loss premiums, and trends in employee usage. Nothing is bundled or hidden inside an all-inclusive premium—every dollar is accounted for.

This transparency allows employers to make informed decisions instead of reacting blindly to annual renewal increases. If costs rise, the reporting shows where and why. If costs decrease, the employer sees the savings immediately. Over time, this visibility supports smarter plan design, better budgeting, and predictable long-term cost control.

With ASO, benefits funding becomes an open book rather than a black box. Employers don’t lose the employee experience—they simply gain the information they’ve been missing.

Why Choose An Independent Advisor

Working with an independent benefits advisor gives your business more choice, better pricing, and ongoing support—especially when evaluating an Administration Services Only (ASO) model. Not all brokers are familiar or comfortable with ASO, and many focus only on fully insured plans. An independent advisor can compare both funding models objectively and recommend what truly fits your organization, rather than steering you toward a single insurer’s product.

At renewal, this independence becomes critical. If an insurer proposes an unreasonable increase, an advisor who understands ASO can take your plan to market, gather alternatives, and negotiate using real data such as target loss ratios, claims trends, and underwriting assumptions.

You also gain year-round support with employee questions, claim issues, plan adjustments, and usage reviews. The end result is a benefits plan that remains cost-effective, competitive, and aligned with the needs of your business—not the priorities of an insurance company.

When you choose Nick Godfrey Insurance, you get a partner who understands small business and protects both your people and your mission.

A Great Plan Strengthens People and Purpose

Put more of your benefits budget toward employee claims, not insurer margin

Gain transparency into how every benefit dollar is used

Strengthen coverage over time instead of cutting to offset premium hikes

Maximize limited resources

Smarter design means fewer wasted dollars.

Stay compliant

We help you manage requirements and keep your coverage up-to-date.

Phone +1 905-8157186

Stop overpaying for traditional benefits ASO puts you back in control