Which of the following typically applies to a Preferred Provider Organization (PPO)?

A Preferred Provider Organization (PPO) plan is characterized by its greater flexibility in choosing healthcare providers compared to other types of insurance plans, such as Health Maintenance Organizations (HMOs). One of the key features of a PPO is that enrollees do not need to select a primary care physician (PCP) and are not required to obtain referrals to see specialists. This aspect allows members the freedom to seek care from specialized providers without going through a gatekeeping process, which is a significant advantage for those who value convenience and direct access to a wide range of services.

While PPOs may have lower out-of-pocket costs within their network compared to out-of-network care, it is essential to understand that they emphasize flexibility and choice in provider selection rather than minimizing overall costs. High premiums may also be associated with PPO plans due to the broader networks and the ability to access out-of-network care, which is indicative of the trade-offs that come with this type of insurance. Therefore, the ability to forego a primary care doctor or referrals is what distinctly defines the PPO structure, making this the correct choice.