What type of insurance plan allows insured individuals to choose between in-network or out-of-network providers?

The option that defines an insurance plan allowing insured individuals to choose between in-network and out-of-network providers is a Point-of-Service Plan. This type of plan blends characteristics of both Health Maintenance Organizations (HMOs) and Preferred Provider Organizations (PPOs).

With a Point-of-Service Plan, members are typically encouraged to use a primary care physician for referrals, similar to an HMO. However, they also have the flexibility to seek care from out-of-network providers, which is a hallmark of PPOs. This choice offers enrollees the ability to receive care from a wider range of healthcare professionals, although utilizing out-of-network services often comes with higher costs than in-network services.

This flexibility is essential for individuals who may have specific healthcare needs or prefer particular providers not covered in-network. The design of the Point-of-Service Plan aims to balance cost-effectiveness with patient choice, making it an appealing option for many consumers seeking health insurance.