Are you tired of paying for insurance that doesn’t reflect your actual claims? Whether you’re a solo business owner or managing hundreds of employees, traditional benefits plans often mean overpaying for what you don’t use and being in the dark about where your money’s going.
This is where Administration Services Only (ASO) funding changes the game. With transparent budgeting, real-time claim visibility, and custom risk management, ASO isn’t just for large corporations; it’s an ideal fit for businesses of any size looking for financial control and strategic flexibility.
What Is ASO Funding and Why Does It Matter?
ASO funding aligns plan costs directly with actual claims, not projections. Unlike traditional fully insured models, which rely on padded reserves and insurance company profits, ASO plans put employers in control. You pay for what your team actually uses, plus a known administration fee resulting in fewer financial surprises and greater cost efficiency .
For example, one client reported monthly claims of $4,109 versus traditional premiums of $7,201, resulting in a $9,000 year-to-date surplus—a huge turnaround from the previous year’s $4,300 deficit.
The Financial Benefits of ASO for All Groups
From 1-person operations to businesses with over 100 employees, ASO funding provides customizable solutions tailored to your current needs with the ability to grow as your business evolves. The Benefits Trust uses a trend projection to help clients plan realistically, making it easier to forecast costs and manage cash flow.
Here’s how it works:
- Employers receive monthly financial statements showing actual claim expenses
- Plan design can be adjusted any time, based on employee usage and budget
- No hidden reserves, and no penalties for claims you didn’t make
Insurance Where It Matters, Not Where It Doesn’t
ASO plans are designed to self-fund everyday expenses like dental cleanings or massage therapy, while using insurance only for catastrophic or unpredictable events, such as high-cost drug claims, long-term disability, or critical illness .
Employers can integrate Stop Loss insurance, which covers claims above a selected threshold, such as $7,500. This protects businesses from large, infrequent claims, without overpaying for routine coverage that could be more cost-efficient to self-fund.
Transparency That Drives Better Decision Making
Traditional group benefits come with complex pricing structures, variable credibility factors, and ambiguous reserves. With ASO, there are no hidden levers. The Benefits Trust calculates rates using simple math and communicates every assumption clearly, from family size factors to admin fees .
Clients receive:
- Line-by-line reporting on claims categories (e.g., drug, dental, hospital)
- Visibility into actual claims and surplus/deficit status
- The ability to adjust plan design in real-time based on usage
This monthly transparency mirrors standard business expense reviews and enhances financial control which is something every business leader appreciates.
Advisors: Ask Smarter Questions, Build Better Solutions
ASO funding is not just a product but a philosophy. It requires asking clients questions that go beyond “how much are you paying?” and instead focus on risk tolerance, financial cycles, and future outlook. The Benefits Trust encourages advisors to initiate deeper conversations that consider:
- Who are the highest claimants in the organization?
- What are the employer’s growth plans or upcoming sales/mergers?
- Are they satisfied with their current renewal—or just tolerating it?
In one real-world case, an advisor hesitated to propose an ASO plan that would have saved the client 20% out of fear of losing commission. This kind of reluctance is exactly what ASO aims to eliminate. At The Benefits Trust, the priority is client success, not status quo preservation.
A Long-Term Strategy, Not a Temporary Fix
ASO isn’t a workaround or an experiment. It’s a long-term strategy designed to align benefit funding with how businesses manage all their other expenses. It works: ASO wins out over traditional insurance in 90% of cases over a five-year span. This is because the model reflects actual usage, avoids profit-padding, and gives employers complete financial oversight .
With 440,000 Ontario businesses employing 1 to 100 people, The Benefits Trust focuses precisely on this segment, offering independent, scalable, and transparent solutions ignored by traditional insurers.
What You Gain by Switching to ASO
- Custom-fit coverage for your business size and budget
- Clear monthly reporting to monitor performance
- Avoid overpaying for unused or padded premiums
- Stop Loss protection against large, unexpected claims
- Strategic scalability as your team or needs evolve
- Full transparency with no hidden reserves or fine print
Whether you’re a small operation looking for cost-effective control, or a growing company ready to rethink employee benefits, ASO gives you a smarter way to fund your plan.
Take the Next Step
Ready to find out if ASO is the right fit for your business? Let The Benefits Trust evaluate your current plan and provide an apples-to-apples comparison. The process is fast, simple, and helps you make a fully informed decision.
Send us your latest renewal for a complimentary ASO assessment.
