Administrative Services Only (ASO) – This is a self-insured plan funded by the employer. An insurer, such as Blue Cross, only administers the plan for that employer. In most cases the employer sets the premiums and determines what the plan benefits are. The employer pays the claims and other expenses of the plan from its own funds. Blue Cross is paid a fee by the employer for administering the plan.
Fully Insured Group Member – This is a plan bought by an individual or employer from an insurer like Blue Cross or HMO, Louisiana, Inc. at a defined premium rate. The insurer pays the claims from its funds.
NOTE: Beginning January 1, 2019, if your plan is a fully insured, you will receive a member ID card that also has the text “Fully Insured” somewhere on your card.
What Do These Terms Mean?