How does a Point-of-Service (POS) plan primarily differ from an HMO?

A Point-of-Service (POS) plan primarily differs from a Health Maintenance Organization (HMO) by requiring members to select primary care physicians. This primary care physician acts as a gatekeeper who coordinates care and provides referrals to specialists within the network. This structure encourages members to use in-network services, while also allowing them the flexibility to seek care outside of the network, albeit at a higher cost.

In contrast, HMOs typically do not allow members to seek care without a referral from their primary care physician, and they often limit coverage to in-network providers to control costs. This fundamentally different approach to care coordination and management sets POS plans apart from HMOs, highlighting the importance of the primary care physician's role in the former.

The other options either describe attributes that are not exclusive to POS plans or could lead to misunderstanding of the inherent structures of these health plan models. For example, a POS plan offers some coverage for out-of-network services, but with significantly higher out-of-pocket costs compared to in-network services, rather than providing unlimited access. Preventive care coverage is typically a standard feature of both plan types, ensuring members have access to necessary health screenings and services. Additionally, payment structures vary; while some services may incur flat fees or copayments