What is a characteristic of a PPO plan?

A characteristic of a PPO (Preferred Provider Organization) plan is that it typically offers lower costs for using network providers. In a PPO plan, members are encouraged to seek care from a network of preferred providers, which results in lower copayments, deductibles, and coinsurance fees compared to out-of-network services. This structure allows for flexibility, as members can choose to receive care from out-of-network providers, albeit at a higher cost.

The focus of a PPO is to provide members with a range of options in their healthcare choices while incentivizing the use of in-network providers through cost savings. Such flexibility is appealing to many consumers who may want to see specialized doctors or providers outside of their network without needing a referral, which further distinguishes PPO plans from other types of plans, like HMOs where referrals for specialists are often mandatory.