Choosing the right health insurance can be rather confusing with the various options that you have. A Point of Service (POS) plan is one of them. POS, a managed care plan is unique in its structure and combines the attributes of a Health Maintenance Organization (HMO) plan and that of a Preferred Provider Organization (PPO) plan.

How does POS work?

• The POS plans usually have small deductibles for majority of the care and very limited co-payments as well when compared to a PPO plan. A co-payment is the amount paid by insured to offset a portion of the medical costs and its amount varies based on the medical treatment; for example, physician visits have a different co-payment rate than what you would have to pay for prescriptions and more focused medical care.
• On the HMO side, the POS plans too have a managed care network of providers that consists of physicians, hospitals and other medical care services. Just as with the HMO, the insured has to select a primary care physician who acts as a buffer or gatekeeper with regards to all specialist and hospital referrals. You cannot go to an in-network specialist directly as you need prior approval from your primary care physician.
• Also, just like the PPO, POS plans provide only limited coverage to members who seek out of network medical care. However, in case of POS the out of network care has less coverage than in-network one and usually needs co-payment and deductible; a deductible being an out-of-pocket expense that the insured has to pay to the POS before he/she can begin to reimburse the medical expenses. There are a few POS plans though which have exceptions and have the facility of carry-over deductibles.

Why POS?

• Unlike HMO plans, POS plans offer better freedom and choices. Also, the plan covers out of network medical needs, at least to a certain degree whereas HMOs do not cover out of network expenses.
• With POS plans, the members or the insured pays smaller deductibles fro majority of the medical care and they also pay limited co-payments for the in-network ones as compared to PPOs. With PPOs, the members are required to pay the co-payments as well as meet the deductibles.
  Given its features that club the advantages of both the HMO and PPO plans, a POS plan may turn out to be a great choice for you. All you need to do is review the plan with a provider and if it suits your needs, go for it!