No business is exactly the same as another. Every employer faces different challenges and seeks to provide for their employees in different ways. When it comes to employee benefits, these differences require flexibility, and a custom fit solution, which is much better served when compared to a “one size fits all”. In these rapidly evolving times, that flexibility can make all of the difference. Boon’s Administrative Services-Only programs, also known as “ASO”, can be the ideal custom solution for your business! Read on to learn more.
What is ASO?
ASO is a form of self-funded healthcare that allows an employer to provide healthcare or disability benefits using the company’s own funds to pay claims. This form of self-insurance differs from the “traditional” full-insured plans that work through an insurance company. With ASO, employers assume the risk for payment of claims, but these arrangements provides a unique opportunity to capture savings regarding benefit spend.
For an employer to self-fund health benefits, they may hire an independent organization to oversee the administrative services of an employee benefit plan. These organizations are known as ‘third-party administrators’. The services offered by third-party administrators can include services, such as enrollment, accounting and collecting of contributions.
How Administrative Services Help Your Business
For an employer to transition to self-funded employee benefits, an employer must find a third-party administrator with the expertise of the industry and resources to properly handle the benefits that an employer offers. When it comes to fringe benefits and tracking those dollars at the individual employee level, a third-party administrator assists with plan compliance and provide a smooth implementation of benefits.
Linking Administrative Services to Contractor Success
During these rapidly changing times, finding stable footing in this new “normal” is likely difficult and may leave employers feeling overwhelmed. The question of how to help employees feel secure, while also protecting the business can be a challenge for employers. A third-party administrator with robust, in-house services, can be a lifeline that eases the nagging concerns of compliance and benefits administration.
As a third-party administrator, Boon offers administrative services that, among other services, include the following to:
- Individual cost accounting
- Hour bank administration
- Consolidated billing and reconciliation
- COBRA administration services
- Comprehensive enrollment and eligibility determination
- Fringe contributions collections
- Audit Trail Accounting
- Allocations to Plan Vendors and Service Providers
Building a comprehensive benefits package with ASO can help employers form a strong response to the COVID-19 outbreak. It can also better address their unique needs going forward beyond the outbreak. Some unique challenges for government contractors that have come with COVID-19, such as diminished work hours, premium shortages, and a need to be flexible in addressing benefits for part-time and full-time employees can be addressed through ASO and through Boon to provide the needed flexibility.
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