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Employers shopping for group health insurance will encounter different types of health plans. ASO plans, also known as administrative services only plans, offer more flexibility and financial control. They can be customized for an employer and are not typically available with fully insured plans. ASO plans, which could be PPO, HMO, or POS, differ in how claims are paid and who holds the risk. Under a fully insured plan, the employer pays a premium to cover claims, while in an ASO plan, the employer pays fixed costs and claims directly from a designated account, resulting in cost savings and more control.
