A Medicare approved network of doctors, hospitals, and other health care providers that agrees to give care in return for a set monthly payment from Medicare. A coordinated care plan may be any of the following: a Health Maintenance Organization (HMO), Provider Sponsored Organization (PSO), local or regional Preferred Provider Organization (PPO), or a Health Maintenance Organization with a Point of Service Option (POS).

An HMO or a POS usually asks you to use only the doctors and hospitals in the plan’s network. If you do, you may have little or no out-of-pocket cost for covered services. A PPO or a POS usually lets you use doctors and hospitals outside the plan for an extra out-of-pocket cost. Some managed care plans may provide extra benefits. Some plans may charge you a premium.