Which network is smaller than a PPO but larger than an HMO?

Which network is smaller than a PPO but larger than an HMO?

• A. POS
• B. PPO
• C. HMO
• D. Indemnity

Answer: (A)

Understanding how healthcare plan networks vary helps here. An HMO typically offers the smallest, tightly managed network and requires you to use in-network providers with referrals through a primary care physician. A PPO provides a much larger network and the freedom to see out-of-network providers, but with higher costs if you go out-of-network. A POS plan blends these ideas: you usually have a primary care physician and need referrals, like an HMO, but you can also use out-of-network providers, like a PPO, though at higher costs. Because it combines elements of both, its network size is generally between an HMO’s and a PPO’s. That’s why POS is the match for “smaller than a PPO but larger than an HMO.” Indemnity plans tend to have the broadest networks and greatest flexibility, not between the two.

Understanding how healthcare plan networks vary helps here. An HMO typically offers the smallest, tightly managed network and requires you to use in-network providers with referrals through a primary care physician. A PPO provides a much larger network and the freedom to see out-of-network providers, but with higher costs if you go out-of-network. A POS plan blends these ideas: you usually have a primary care physician and need referrals, like an HMO, but you can also use out-of-network providers, like a PPO, though at higher costs. Because it combines elements of both, its network size is generally between an HMO’s and a PPO’s. That’s why POS is the match for “smaller than a PPO but larger than an HMO.” Indemnity plans tend to have the broadest networks and greatest flexibility, not between the two.