FPGEE for National Association of Boards of Pharmacy (NABP) Practice Exam 2026 - Free NABP Practice Questions and Study Guide

The correct answer is based on the characteristics of a Point of Service (POS) plan. A POS plan combines features from both Health Maintenance Organizations (HMOs) and Preferred Provider Organizations (PPOs). With a POS plan, individuals typically select a primary care physician (similar to an HMO), but they also have the flexibility to receive care from providers outside of their network for a higher cost. This allows for a combination of in-network care, which is typically more affordable, and out-of-network care, which is available but incurs higher out-of-pocket expenses.

This flexibility is a defining feature of POS plans. It caters to members who value a narrower network of care providers while also wanting the option to seek care outside that network if they choose, albeit at an increased cost.

In contrast, PPOs do offer the choice of out-of-network care, but they do not require a primary care physician and generally provide a broader network with fewer restrictions. HMOs require members to use network providers and do not generally offer out-of-network coverage, while PSOs are less common and often resemble HMOs but with some variations in the structure of provider networks.