What is a characteristic of Preferred Provider Organizations (PPOs)?

Preferred Provider Organizations (PPOs) are designed to offer greater flexibility in healthcare choices compared to Health Maintenance Organizations (HMOs). One of the defining characteristics of PPOs is that they allow members to see any healthcare provider, including specialists, without needing a referral from a primary care physician. This means that patients can choose to go out-of-network, although this may come at a higher cost.

While PPOs tend to be more expensive than HMOs due to this added flexibility and the absence of a required primary care physician for referrals, they provide a network of preferred providers that reduces costs when patients utilize in-network services. This structure appeals to those who value choice and flexibility in their healthcare options, even if it comes at a potentially higher price point compared to other types of insurance plans.