Illinois Health Insurance Practice Exam 2026 – All-in-One Guide to Master Your Health Insurance Certification!

Question: 1 / 400

Which organization issues Point of Service (POS) plans?

Insurance companies

Government agencies

Health Maintenance Organizations (HMOs)

The correct answer, Health Maintenance Organizations (HMOs), is rooted in the structure and function of POS plans. Point of Service plans are a hybrid type of health insurance that combines features of both HMOs and Preferred Provider Organizations (PPOs).

In a POS plan, participants typically choose a primary care physician (PCP) who directs their healthcare and can refer them to specialists within the network, a characteristic inherited from HMO models. However, unlike traditional HMOs, POS plans also offer the flexibility for members to go outside of the network for healthcare services, although at a higher out-of-pocket cost.

This dual approach makes POS plans attractive to consumers wanting the cost savings often associated with HMOs while also providing the freedom to access out-of-network providers if needed. This unique structure is why HMOs, as the issuing organization, play a crucial role in administering POS plans.

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