THE ADVANTAGES AND DISADVANTAGES OF OFFERING POS INSURANCE

When you are determining which health care benefits are best to present to your employees, there are a few options to choose from. Over the course of the next few weeks, we are going to explore the advantages and disadvantages of each medical benefits solution to help you provide the best group health benefits, meeting both the needs of your organization and those of one's employees.

Today, we are exploring the advantages and drawbacks of POS insurance policy.

Millennials Insurance, MILB Insure

What is a POS?

A Point-of-Service plan is a managed care plan that is a hybrid of HMO and PPO plans. Similar to an HMO strategy, participants designate an in-network physician to be their major care provider, however like a PPO program, the participants may also go outside of the provider network for healthcare services.

How a POS works

As stated above, POS programs combine elements of HMO and PPO plans, requiring individuals to designate a primary care doctor and obtaining referrals to system specialists like needed. According to the plan design, services rendered by a primary treatment physician are typically not subject to a deductible and preventive care benefits are usually included. And, just like a PPO plan, participants can choose to receive care from nonnetwork providers, but this comes at a greater out-of-pocket expense and may require co-payments, coinsurance and an annual deductible.

Advantages of a POS plan

With a POS strategy, participants can go out of network easily, allowing visits to any specialist, also benefiting people who use outpatient medical services. There is also greater geographic flexibility, as travelers can visit doctors anywhere and still obtain medical coverage. This is an excellent perk for those who live in rural areas as they may have fewer choices with an HMO in small towns.

Disadvantages of the POS plan

Deductibles can be costly for POS programs if participants choose to use out-of-network companies. A small copay may be required to see a doctor, but when participants use out-of-network suppliers, a high yearly deductible may have to be satisfied first.

Like PPOs, POS plans also come with high quantities of paperwork for out-of-network treatment. Doctor fees may need to be paid upfront, in full and individuals must file their own insurance promises. Reimbursements can also take a few months to be stuffed.