What kind of network does a Preferred Provider Organization (PPO) typically offer?

A Preferred Provider Organization (PPO) is characterized by a network that includes preferred providers, which generally consists of a broad selection of healthcare professionals and facilities. This structure offers members the flexibility to receive care outside of the network, although at a higher out-of-pocket cost compared to in-network services. This dual option is a hallmark of the PPO model, allowing individuals to choose either to stay within the network for lower costs or venture outside it for potentially broader choices or specific specialists.

This flexibility in accessing out-of-network care is a key factor that sets PPOs apart from more restrictive plans, such as Health Maintenance Organizations (HMOs), which typically do not allow out-of-network care except in emergencies. Therefore, the statement about the PPO providing a network of preferred providers along with the ability to access out-of-network care aligns with the fundamental principles of how PPOs operate in health insurance.