A preferred provider organization (PPO) offers what main advantage?

The main advantage of a preferred provider organization (PPO) is that it allows members to see specialists without requiring referrals. This flexibility is a significant draw for individuals who prefer to have direct access to specialists in their healthcare journey. Unlike some other types of health plans, such as health maintenance organizations (HMOs), which typically require a primary care physician's referral to see a specialist, PPOs give members more autonomy in managing their healthcare.

Additionally, while PPOs do have network agreements to establish lower costs for services obtained from preferred providers, members are still permitted to seek care from out-of-network providers, albeit at a higher cost. This structures the plan to encourage, but not mandate, the use of network providers. Factors such as higher costs for non-network providers or mandatory participation in a network play a role in the overall design of PPO plans, but the standout feature is the ease of access to specialists without the added step of obtaining a referral. Full coverage without any copays is typically not a characteristic of PPOs, as most plans involve some out-of-pocket expenses for services.