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ASO vs. TPA – Approaches, Similarities and Differences

 

You've decided to offer health benefits to your employees - now what?

Insurance specialists across the nation are talking about self-insurance and the fact that an increasing number of employers are looking to self-fund their employee health benefits for the first time. While deciding to self-fund is a great first step, it is important for all people to realize that not all self-funding is the same. The look and feel of self-funding varies depending upon whether the employee benefit plan decides to work with an ASO (Administrative Service Only arrangement) or with a TPA (Third-Party Administrator).