Certified Revenue Cycle Representative (CRCR) Practice Exam

What is meant by Administrative Services Only (ASO) in the context of health plans?

1. Health services provided only for small groups

2. Contracting administrative services to self-insured plans

3. Insurance services specifically for government employees

4. Only emergency services offered to self-insured plans

The correct answer is: Contracting administrative services to self-insured plans

In the context of health plans, Administrative Services Only (ASO) refers to a model where administrative tasks associated with managing a self-insured health plan are contracted out to a third-party administrator. This arrangement allows employers to retain control over certain risks while outsourcing functions like claims processing, enrollment, customer service, and other administrative tasks. This option highlights the relationship between self-insured plans and external administrative services, which is a fundamental aspect of ASO. By utilizing ASO, employers can benefit from the expertise and resources of specialized administrators without bearing the full insurance risk associated with fully insured plans. This can lead to more efficient operations and cost management for companies that prefer to self-fund their employee benefits while still ensuring that administrative responsibilities are handled effectively.