What is a defining feature of Point of Service (POS) plans?

A defining feature of Point of Service (POS) plans is that they combine features of Health Maintenance Organizations (HMO) and Preferred Provider Organizations (PPO). This means that POS plans offer an option for patients to choose between receiving care from in-network providers, where lower out-of-pocket costs apply, or going outside the network with higher costs, similar to a PPO. This blend allows for flexibility in healthcare provider choices, appealing to patients who value both cost-efficiency and provider variety.

POS plans also require patients to select a primary care physician, typically aligning with the HMO model. In terms of utilizing providers, while they do provide more flexibility compared to standard HMO plans, they still emphasize in-network services and often require prior authorization for out-of-network care. Thus, the distinct combination of HMO and PPO features is foundational to understanding how POS plans function, making this the correct choice.