What are Special Needs Plans (SNPs) classified as?

Special Needs Plans (SNPs) are classified as either Health Maintenance Organization (HMO) or Preferred Provider Organization (PPO) plans because they are specifically designed to cater to individuals with particular health needs, such as those with chronic conditions, institutionalized individuals, or dual-eligible beneficiaries (those eligible for both Medicare and Medicaid).

The classification as HMO or PPO provides flexibility in plan design, allowing SNPs to evaluate and tailor their healthcare services to effectively meet the unique needs of their enrollees. HMO plans typically require members to use a network of doctors and hospitals for the highest level of coverage, while PPO plans allow more freedom to see out-of-network providers, albeit at a higher cost. This versatility in plan structure helps SNPs address the diverse requirements of their members.

The options that limited the classification solely to HMO or PPO could not encompass the comprehensive nature of SNPs, which can be offered in either format depending on the insurer and specific service area. Thus, A accurately represents the possible classifications of Special Needs Plans.