What is a key feature of a Preferred Provider Organization (PPO)?

A key feature of a Preferred Provider Organization (PPO) is that members have access to covered services without requiring a referral. This structure allows members to see any healthcare provider within the network, as well as out-of-network providers, without the need to first visit a primary care physician for a referral. This flexibility is one of the main reasons individuals opt for PPO plans, as it enhances their ability to choose specialists and seek care directly according to their healthcare needs.

In contrast, other options describe characteristics that are typical of different insurance models, such as Health Maintenance Organizations (HMOs), which do require members to select a primary care physician and obtain referrals to see specialists. Members in those models face stricter rules related to direct access to specialized services, unlike the open access provided by PPOs. Additionally, while higher costs might occur for out-of-network providers in a PPO plan, not requiring a referral to see specialists exemplifies the distinct advantage of PPO structures in the context of healthcare flexibility.