ASO Plans for Small Group

[ABC]

The big carriers are starting to release the ASO plans for groups down to 25 lives.

It looks like spec rates could be as low as $10,000.

This will change the fully insured market drastically.

 

[leevena]

Try 10 lives. We have been marketing them for quite awhile.

 

[LGilmore]

These types of plans have been around for a while. Do they have a major impact? No, not really.

 

[leevena]

These types of plans have been around for a while. Do they have a major impact? No, not really.

I agree that they did not HAVE a major impact, but don't you believe they will in the future? Some brokers have made a boatload of money selling these in the past, takes some extra work and knowledge though.

 

[Norwayguy]

Don't do much Group business...What is ASO?

 

[leevena]

Don't do much Group business...What is ASO?

Administrative Services Only, a self-funded plan for benefits.

 

[ABC]

When the large carrier release these ASO plan everything is going to bundle and it will make it easy for a group to admin them.

What is a spec rate on a 10 life group?

When I compared fully insured to self funded on small groups it has not made sense. There was not enough savings for the risk. Most of the time there was no savings.

That will change with large carriers offering ASO to small group. Network discounts will be deeper & admin cost should be lower.

I don't see how a TPA is going to compete?