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Insurance Type:

Point Of Service Plans (POS Plans)

There are dozens of different types of healthcare plans to assist and take care of all the health and wellness needs of Americans. Many are not aware of some of the options that are molded together to enhance the characteristics of the certain health plans. Due to Health Maintenance Organization (HMOs) and Preferred Provider Organization (PPOs) being the two most popular, Point of Service Plans were established as a mixture of the two.

Point of Service Plans (POS) are an unusual hybrid of HMO Plans and PPO Plans, providing a multitude of choices than some of the other plan types. One thing that must be highlighted is that the policyholder does not choose which plan type to use until the Service is being used. As with all other managed care systems, the idea is to receive reduced cost medical care at the cost of some flexibility with regards to where to get healthcare.

Compensation may vary widely depending on whether you choose to see a physician or specialist inside or outside of the limited networks that have been created. A primary physician is usually chosen and he or she can refer the patient to other care providers both in and out of the network. POS Plans sometimes offer discounts in tiers depending on the healthcare provider chosen. If you choose to go outside of the network, you will usually have to do your own paperwork with Point of Service Plans. This is typical for other healthcare plans too.

Deductibles are relatively low as are other costs like co-payments and prescription drugs but POS Plans can have high premiums compared to HMOs and PPOs. Depending on the type of care you foresee needing throughout the year, a POS insurance plan may be for you. Patients who do not have a relatively clear plan or who do not see specialists frequently probably will not benefit from this type of plan.

There are excellent advantages from choosing a Point of Service Plan; one of the biggest includes no deductibles. This is perfect for those who do not want to make any payments towards their medical expenses before the insurance company will reimburse. However, if you go out of the network, you may be subject to deductibles and higher co-payments. In addition to more out-of-pocket fees for going out of the network, there can be a great deal of paperwork for a patient who frequently seeks care out of the network. Because this kind of plan is relatively uncommon, there is often much less customer support available for policyholders with questions or concerns.

Point of Service Plans incorporates more options than other plan types. The freedom to choose healthcare needs is always a plus. If you have no intention of ever going out of network for care, you may end up wasting money on this type of plan. When you are deciding on which plan works for you, make sure to consider pre-conditions and future conditions. Talk to an insurance advisor about what you need and what you are willing to pay. This way you will be covered and can minimize any unnecessary expenses associated with medical bills.

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