What characterizes a Point-of-Service (POS) plan?

A Point-of-Service (POS) plan is characterized as an open-ended Health Maintenance Organization (HMO) and Preferred Provider Organization (PPO) hybrid. This means that it combines features from both types of plans, allowing members more flexibility when it comes to choosing providers.

With a POS plan, individuals generally select a primary care physician (PCP) who coordinates their healthcare. However, unlike traditional HMOs, which usually require members to seek all care through a network of providers, POS plans allow members to seek care outside of the network, though at a higher cost. This balance provides the structured care typical of HMOs while also offering the option for more freedom in provider selection that is characteristic of PPOs.

In contrast to this, the other options do not accurately reflect the nature of POS plans. For instance, a rigid network of selected providers describes a more traditional HMO model, while coverage for only catastrophic health events is not a defining feature of a POS plan—it may relate more to catastrophic health insurance policies. Lastly, the requirement of no copayment for services is not typical for POS plans, as they often do include copayments, especially when utilizing services from out-of-network providers. This understanding of how POS plans function can help in