What the heck is the difference between a POS and PPO plan? They seem very similar.
POS vs. PPO
- Thread starter SJBX
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As far as I know, here's the difference:
A PPO requires you to stay within a prescribed network of physicians. A POS also has a designated network, but if you're willing to pay extra, you can see a doctor outside the network. POS just gives you more choices.
A PPO requires you to stay within a prescribed network of physicians. A POS also has a designated network, but if you're willing to pay extra, you can see a doctor outside the network. POS just gives you more choices.
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Definitions straight out of the glossary from Folland et al. The Economics of Health and Health Care. 4th ed.
Point-of-Service (POS) Plan A managed care plan that encourages patients to select a provider in a network. Members can select nonnetwork providers but will incur higher out-of-pocket costs.
Preferred Provider Organization (PPO) An arrangement under which an enrollee is given financial incentives (e.g., no copayments) to seek care from selected physicians and hospitals with which the payer has contracted.
Hope this helps,
Jason
Point-of-Service (POS) Plan A managed care plan that encourages patients to select a provider in a network. Members can select nonnetwork providers but will incur higher out-of-pocket costs.
Preferred Provider Organization (PPO) An arrangement under which an enrollee is given financial incentives (e.g., no copayments) to seek care from selected physicians and hospitals with which the payer has contracted.
Hope this helps,
Jason
