Problem
A friend, who has been a dependent on her parents' insurance, recently graduated from college and was offered a full-time healthcare management position. When she started to complete her human resource (HR) application, the HR manager asked her what type of healthcare plan she chose. Her new employer offered several different healthcare plans: fee for service, HMO, PPO, and POS plans. She was very confused and asked you to explain the managed care plans to her.
Describe the characteristics of HMO, PPO, and POS healthcare plans and identify the differences between the HMO and PPO plans. Make sure you explain so your friend can understand.