PPO, HMO and POS are all health plans that are designed in such a way, so that they are able to provide maximum health benefits to all the small businesses. These are actually referred to as managed health care plans that help all the employers to offer their employees discounted medical insurance services, by making a negotiation of reduced charges with the help of doctors and the physicians. You are required to choose a health plan that is the best for your business, and that is totally dependant on the needs of the company and also the financial status of the company. In big companies there are usually specialists who are employed in order to decide about the nature of policy. HMO refer is said to be the least expensive health option group and it is also considered to be the least flexible. As per this premium you are required to pay a monthly premium, in return for the doctor's visits, and also preventive cares. In such a plan a customer cannot visit a doctor who is outside the network of the HMO. An employer usually decides what percentage of each prescription is required to be covered by the HMO, and what part of the cost shall be paid by the employee out of his pocket. HMO usually covers prescription drugs, and the expenses of the drugs can range from a single digit co-pay of $5 for certain drugs, to the payment that covers the entire cost of the drug. When you compare the PPO with HMO, it is found to be more flexible and with a slight higher premium than an HMO.


The PPO allows you to venture out of the network at your own discretion, and also does not require any kind of referral from the physician. In case you stray away from the network of PPO, you will be required to pay the full cost of the treatment, and then in the later period in order to get the reimbursement you may submit the bills to the insurance company for reimbursement. The PPO usually makes a reimbursement of 80% of the bill amount. POS is another form of insurance policy that refers to Point of Service Plan, and under this plan there is designated a physician who was to be your primary care provider. In this kind of insurance policy, a member has a right to choose between member and a non member or even a non member provider. In such cases, a member provider s considered to be the least expensive choice for the employee.

Like a PPO, the POS plan allows you to go out of the network. In case you go out of the network, you will be required to pay major portion of the cost, until the primary care physician, makes a reference of you to a doctor who is out of the network. The distinctive feature of POS is that the employee is given the chance to choose a physician of his own choice, who has previously agreed to provide them services at a discounted fee. In this system of insurance, the physician that has agreed to provide the services provides it at a discounted rate.