AHIP Practice Exam 2025 – Complete Test Preparation

A primary characteristic of a Preferred Provider Organization (PPO) plan is its greater flexibility in choosing healthcare providers. PPOs are designed to allow members to see any doctor or specialist without the need for a referral, which contrasts with more restrictive insurance models, such as Health Maintenance Organizations (HMOs). This flexibility means that members have access to a wider range of healthcare providers and can make choices about their care that best fits their individual needs.

Additionally, while PPO plans do have networks of preferred providers that offer services at reduced rates, members can still seek care from out-of-network providers, albeit usually at a higher cost. This aspect of PPOs is particularly appealing for individuals who wish to maintain a broader choice in their healthcare decisions or who may need to see specialists who are not in-network. The flexibility to visit a wide range of providers, including specialists, without extensive prior authorization is a significant advantage for many members.