Question

Why did the point-of-service (POS) and preferred provider organization (PPO) plans grow in popularity?

Answer 1

Point of service (POS) has both HMO and PPO plans. These both are common types of managed care health insurance plans. People receive service from the network from physicians or hospitals they have contracts with the sponsor. The managed care plan adminstrators HMO and PPO as a mediator for consumers and health care providers for providing medical services. From the 1990s this managed care work as traditional, fee-for-service health insurance. This helps the patient to choose the doctors by their choice. It helps for outpatient care, reduces cost, avoids harms and reduces unnecessary tests. POS and PPO plans have popularity due to its traditional insurance managed care pays for doctors and hospital fees for service than prepaying. The patient pays low co-insurance for receiving service with their physicians for their care. It also has the flexibility for out of network care with deductible and coinsurance percentage charge.