A POS (Point of Service) Insurance Plan allows the insured person to choose providers or specialists with the POS plan's networks referred by their primary care physician, or to self-refer to a provider outside the network. The insured person will receive the highest level of benefits if it uses providers inside the network. With POS health insurance you have greater freedom, but at a higher cost.

When you enroll in a POS insurance plan you are required to choose a primary care physician to monitor your health care, but the physician must be chosen from within the health care network. The primary care physician then becomes your "point of service". For medical visits within the health care network, paperwork is completed for you. If you choose to go outside the network, it is your responsibility to fill out the forms, send bills in for payment, and keep an accurate account of health care receipts.
If a doctor refers a patient out of the network the plan usually pays all or most of the bill. If a POS member self-refers to doctors or specialists outside the network, they will have to pay a predetermined amount of coinsurance.

In addition to offering added freedom, POS plans have no deductibles and limited co-payments for in-network coverage. With a PPO, members are required to meet deductibles and pay co-payments. Point of Service plans, on the other hand, have no deductibles and noticeably smaller co-pays.