Health insurance can be a little confusing at times and when trying to select a new one, the choices may seem overwhelming. One type of policy that should be considered is the POS, which stands for point of service plan. It is one policy that is not as well known as the HMO or PPO plans.

For comparison reference, the HMO is a managed care plan that has a limited provider base and is very strict in nature. The PPO plan stands for preferred provider organization. It comes with deductibles but care is not managed by a primary care physician. Premiums for this type of policy are usually higher.

Understanding the function of a point of service plan will bring to light the great features of this type of health insurance. The main function of this plan is to provide more flexibility than an HMO, but with many of the cost savings that you get with an HMO policy. Flexibility and cost are two very important things in today's economy.

The POS plan is still considered a managed care program and therefore a primary physician must be chosen for each member of the family. This primary care physician is your point of service. The doctor points you to the right specialist and treatment places you need by issuing you a referral. Without the referral your claim will be paid at the out-of-network rate, even if the provider is in the network.

Most of the time the doctor will refer you to providers that are in the same network, however it is a good idea to ask before keeping the appointment. The point of service plan has a large provider base and it should be easy to stay with providers in the network. This is important because if you see a provider out of the network there will be high deductibles, and a large coinsurance to pay.

Another reason to stay in network is how the claims are handled. Providers in the network have to file the insurance claim for you whereas the out-of-network providers are not bound by this rule. Using network providers not only saves you money, but the hassle of getting the claims submitted.

The point of service plan has a great many benefits and makes many families feel comfortable, knowing that their primary care physician is keeping up with their entire medical file. Although the doctor may not be the actual doctor giving all the care, they get reports from the other providers and keep all the record up to date and in your file. This plan is good for the well being of the entire family.