New ASO Agreements May Include Restrictions on Audits
If you’re a broker and your self-insured clients are being asked to sign new ASO agreements, pay close attention to the audit provisions.
Our auditors have recently seen an alarming trend among a few large Administrators attempting to limit the scope of audits and/or requiring increased fees for the types of comprehensive audits allowed by previous agreements. It appears that a dramatic increase in audit requests is the underlying motivation for carriers and Administrators restricting audits to a simple, stream-lined, and perhaps outdated audit methodology. It may also be seen as a means for Administrators to limit their exposure as auditing technologies advance.
If you have questions or comments, contact BMI today to discuss.