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Point of Service Vs. HMO

When choosing a health insurance plan, you want to choose one that limits your out-of-pocket expenses and helps you get the best medical care that you can get. Two popular options in this area are the point of service plan and the health maintenance organization. Either one of these options could be better for you depending on your needs.

  1. Network System

    • With both of these types of insurance, you are given access to a network of medical providers and facilities. Point of service and HMO plans negotiate terms with a large network of providers to provide you with medical service. When you need medical help, you can visit one of these facilities and receive treatment at a discounted rate. You have to pay a monthly fee to the insurance company in the form of an insurance premium. This gives you access to the network as you need it.

    Advantages of HMO

    • Choosing an HMO can provide you with a number of advantages over other types of insurance policies. For example, when you work with an HMO, it places a priority on preventative health care. This means that your insurance company will help you pay for mammograms, checkups and other preventative health care measures. Another advantage of this type of plan is that it may not have any lifetime limits on coverage. You will not lose benefits at a certain point after a dollar figure has been reached.

    Advantages of POS

    • POS plans are similar to HMO plans, but offer a few advantages for insured customers. For instance, with a POS plan, you can access the plan's network of providers, but you can also get help with charges outside of the network. With an HMO, you will typically get no help if you have to go to a provider that is out of the network. With this kind of plan, you also do not have to worry about a deductible -- a certain out-of-pocket amount that must be met before the insurance company begins to pay -- and simply pay a co-payment each time you are treated.

    Making the Choice

    • Deciding between one of these two types of insurance can be difficult, because many factors must be evaluated. If you prefer knowing that you will have coverage for the rest of your life if you continue to make premium payments, the HMO might be for you. If you would rather not have to worry about a deductible as long as you stay in the network, the POS plan might be a better fit. It is generally best to compare plans side by side so that you can see the total premiums that are charged as well as any other out-of-pocket costs.

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