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Definition - What does Point-of-Service mean?

Point-of-Service is a health care plan type which is a combination of the two major health insurance plan styles offered (preferred provider organization, PPO, and health maintenance organization, HMO). The plan requires that the policy-holder must nominate a primary health care physician from those offered by the network. The cost of premiums for point-of-service lies between the ranges of the two major health plans. While it offers less freedom of choice in providers than a PPO, is offers more freedom than an HMO.

SureHire explains Point-of-Service

Point-of-Service is an amalgamation of the Health Maintenance Organization and the Preferred Provider Organization insurance plan types. If the policy-holder is referred by their primary health care physician to a specialist practicing out of the network, the payment burden is considerably less than if a specialist is sought out directly without a referral from an in-network physician. The cost of premiums for point-of-service is bounded by the higher limits of the preferred provider organization premiums and the lower limits of the health maintenance organization.

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