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What Does Administrative Services Only (ASO) mean?

Long Term Disability - Question 32
In the context of disability benefits, this refers to a situation where a 3rd party company, such as a large life insurance company, has entered into an agreement with an employer that is self-insured for disability or other benefits to manage claims that are submitted. For instance, if you work for a large institutional employer, you may have benefits administered by Manulife (for example) and any claims you make may be paid by Manulife, so you think you’re dealing with an insurance company, but in fact, it is possible that Manulife is actually being reimbursed for every dollar spent, plus a management fee. Such self-insured employers are outsourcing the day-to-day management and administration of these claims.

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