In what way do POS plans differ from traditional HMO plans?

POS (Point of Service) plans differ from traditional HMO (Health Maintenance Organization) plans primarily in the flexibility they offer regarding provider access. A significant characteristic of POS plans is that they allow members to receive care from both in-network and out-of-network providers, although utilizing in-network services typically results in lower out-of-pocket costs. This option provides flexibility for members who may want to seek care from specialists without needing referrals or wish to access services that may not be available within the typical HMO network.

In contrast, traditional HMO plans often restrict members to a closed network of providers and usually require designating a primary care physician (PCP) who manages referrals to specialists. Thus, the ability to access both in-network and out-of-network benefits in POS plans makes them a more versatile choice for those who require more choices in their healthcare decisions.