The Three Main Types of Plans
POS or indemnity plans provide the most flexibility allowing you to see any doctor you want and not requiring a referral to a specialist. They usually have a higher cost and are becoming offered less and less. You may be required to pay up front to your doctor and ask for reimbursement from your insurance company on your own.
HMO's or health maintenance organizations offer health care at a fixed price by a group of health care providers which means less cost to you but sometimes less care as well.
You will be provided with a primary care physician that is within the network and without approval from them you will not be able to seek care from a specialist. There is a predictable out of pocket expense and it is often much lower than the other plans, but for that perk you will give up the ability to assist in the decision making of your health care.
PPO or preferred provider organizations offer the flexibility of the POS plan and the affordability of the HMO plans, it will cost more than the HMOs but offers you the choice to go out of network to see a specialist if you feel necessary, your cost will be higher for out of network care services, but the choice is still there. Your out of pocket expenses will vary with this plan, and it will make it harder for budgeting your health care costs.