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The Point of Service (POS) plan is designed to offer individuals flexibility in choosing their healthcare providers at the time they need services. This type of plan combines features of both Health Maintenance Organizations (HMOs) and Preferred Provider Organizations (PPOs).

In a POS plan, members are typically required to select a primary care physician (PCP) who coordinates their care and provides referrals to specialists if needed. However, unlike an HMO, where members must use network providers for coverage, a POS plan allows members to seek services from providers outside of the network, usually at a higher cost. This flexibility of selecting providers at the point of service is a key distinguishing feature of POS plans.

In contrast, plans such as an Exclusive Provider Organization (EPO) limit coverage to network providers without the referral requirement typical of an HMO, but do not provide the option of seeking care outside the network. Preferred Provider Organizations (PPOs) offer network options and the ability to go outside the network, but they typically require members to manage and pay their copays for out-of-network services upfront rather than allowing for the same coordinated referral system as POS plans. Health Maintenance Organizations (HMOs) focus on in-network providers and generally do not provide coverage for