Of the following types of plans, costs for the patient are lowest, but choice of providers is most restricted, in a:

• A. Indemnity plan
• B. Health maintenance organization
• C. Preferred provider organization
• D. Point-of-service plan

Answer: (B)

The plan type that minimizes what the patient pays while restricting which providers can be seen is the one that uses a fixed network with a gatekeeper model. In this setup, costs are kept very low because care is delivered within a specific network and providers are paid through set rates, with the patient facing low copays and often lower premiums. A primary care physician acts as the gatekeeper, so patients need referrals to see specialists, which narrows the choice of providers. Out-of-network care is typically not covered except for emergencies, reinforcing the limited provider options but keeping costs down for the patient.

By contrast, an indemnity plan lets you see any doctor with reimbursement after the fact, but this freedom comes with higher premiums and out-of-pocket costs. A preferred provider organization offers a larger network and some out-of-network access, but at higher cost-sharing than an HMO. A point-of-service plan blends gatekeeping with some out-of-network coverage, so it’s less restrictive than an HMO. All of this explains why the HMO provides the lowest costs with the most restricted provider choice.