A point-of-service (POS) plan is best described as a managed care arrangement that:

Why B is correct

A point-of-service plan blends managed care and indemnity features: the insured selects a primary care physician who acts as a gatekeeper for in-network care, but unlike a strict HMO the plan permits out-of-network treatment, generally subject to higher deductibles, coinsurance, and a referral requirement. POS plans are a middle ground between HMOs and PPOs: they preserve the lower cost of network care while offering the flexibility of out-of-network access. The gatekeeper/referral structure combined with higher cost sharing for out-of-network services are the two defining features examiners test.

Why the other options are wrong

• C) Paying benefits only within a closed panel of providers describes an HMO or EPO, not a POS plan, which does allow some out-of-network coverage. An HMO or an EPO confines benefits to the provider panel, and the whole point of the POS structure is that out-of-network access exists, so labeling a POS plan as closed-panel-only misstates the product.
• D) A POS plan requires selection of a primary care physician and referrals for in-network specialty care; self-referral at in-network cost sharing is not a POS feature. Open-access HMO features are real, but the POS model is defined by the combination of a gatekeeper and an out-of-network benefit; removing both elements changes the plan into something else entirely.
• A) A POS plan has a provider network and a gatekeeper; it is not a pure fee-for-service indemnity policy. Fee-for-service indemnity policies have no network and no gatekeeper, whereas the POS plan is built on an HMO-style network with a selected primary care physician at its center.

Memory hook

POS = HMO gatekeeper plus an out-of-network escape hatch at higher cost. Two worlds, one card.